Buying Repossession- Advice?

ianbrown

We've finally got an offer on our property(hoorah!) and have seen a repossesion that we like, that needs a LOT of work.

It has no doors, the oldest bathroom suites and an extension that is unsafe, so needs to come down but it leads on to the side of the house(openplan).

Anyway, Its up for 160K, just dropped 10K and we've put an offer in of 133k.Four bed detached, cul de sac. Sold in 2006 for 187, on house prices reckon its worth 169.

As its a saturday I don't know if it'll be accepted however, what I was wanting to know is do you think thats a reasonable offer?? I know this is a bit like how long is a piece of string but for piece of mind!

Also, what should I expect when buying a repo? What is the process? I know there's a 28 day exchange but when do they advertise my offer? How late can someone offer higher? At day 27 or would the bank think it's not worth it? I don't wanna pay for a mortgage and survey and then be outbid.


Sorry for the many question,
Thanks in advance

Saver-Rob

Paying for a survey and then getting gazumped is indeed possible. This is one reason why we did not go through with making an offer on a repossession. I have read horror stories where a higher offer has been put in just days before the person exchanged contracts. You may get a bargain, on the other hand you may end up loosing some money.

ianbrown

Thanks Rob - thats exactly what i'm scared off - but not enough if its a bargain!!

As it needs so much work i am keen to make plans but daren't because of the situation!

Saver-Rob

You should have a look through the thread in my signature. Also check out other stories on repossession properties on the site. This is a particularly interesting one: http://forums.moneysavingexpert.com/showthread.html?t=1526383

ianbrown

Thanks for that thread. started off pretty well then started making me worry!!
I've already had a sleepless night and they haven't even excepted the offer!

Saver-Rob

You may end up with a great bargain, on the other hand you may end up loosing hundreds of pounds if you are not prepared to 'up your offer'. Its a gamble - would loosing £600 make a massive difference to your finacnes or is it worth the gamble, because until you have the keys in your hands thats all it is!

Best of luck though. I personally wouldnt let it put me off a repossession.

LisaLou1982

Hiya
Unlikely that you will get your offer accepted today- repossessions companies rarely work at the weekend so you will need to wait until they come back on Monday for it to be put forward. Likelihood of your offer being accepted depends on several factors - is the offer a good offer? can the estate agent reasonably say that that is the best price they could expect to achieve in the current market place? What is your financial position? Is it reasonable and likely that you will be able to complete in the 28 day timescale? How long has it been for sale at the timescale and also how much is owed on the property?

Why have you made an offer of 133 if you think that the house is worth 169?? Remember to keep in mind that what you perceive to be a bargain is likely to be what someone else sees to be a bargain too. The other thing to take into consideration is that the house will have been valued by at least 2 RICS chartered surveyors at the price it is on for - that will also be taken into consideration when offers are made.

The only way to make sure that you get the house is to make an offer for how much you want to pay and then get on with it as soon as possible. Have your solicitor and mortgage advisor in place. The repossession company will be speaking to the agents for an update - if they don't feel you are co-operating properly or to a reasonable timescale then they WILL pull the sale from you. Speak to the agents on a regular basis once your offer has been accepted and ask them to give you advice on how to speed things up. If they can see that you are doing everything you can to get the sale completed quickly they will argue your corner if any other offers come in.

ianbrown

Thanks Lisa Lou, really settled my mind. I have been speaking to solicitors and estate agents this morning to try and get something sorted.

House currently for sale at 150k, offer at 133k so roughly 12% under. On houses prices website says should be worth 169k but needs new kitchen, three new bathrooms etc. On the cheap a minimum of 10k. At peak neighbourhood houses same were selling for between 200 -220k. could never afford if not a repo.

Do you think this is reasonable offer? I'm a girl - sorry about user name- and put offer in before husband had viewed. We viewed again this morning.Now he's saying offer is too high - it needs a lot of work before we can move in. Can i retract for lower offer? Officially bid hasn't gone in because mortgage company hasn't faxed our agreement in principal yet.

Any advice greatky received,

poppysarah

Yeah ring them now

ianbrown

Put my offer forward today. Has been rejected - they told me there had been another offer of er.. um.... 125k. But was too low. I think they were lying about the figure.

Said it had been rejected because my buyer hasn't had a survey done. But they're not sure it's gonna be accepted if they had.

What to do? Leave it a week and offer again? Can I lie and say my buyer has had a survey in a week? Can they check?