We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Buying a Repo in this Economy
EmmaAndSarah
Posts: 5 Forumite
My partner and I are FTB looking to purchase a repossessed house. The one we have viewed needs a bit of work, but we think it's a bit of a deal. Neighbouring houses are going between 175-180K, where this one's market price is 123K. According to the EA, the circumstances with the repo is that the owner had a buyer lined up, but did not complete the sale in time before the respossession came into effect. The house was repossesed in early September, and has not sold yet (obviously).
It seems the standard is putting in offers for repossessions at asking price. My partner and I both work in the insolvency and bankruptcy industry, so we have another type of view when it comes to lenders - we see them willing to accept pence on the pound for their loans, including repossessions and shortfalls. Our view is to go in at least 10-15% below asking price, especially due to the fact that its been unsold for more than 6 months. Is this just naive? Do you think we've got the right mindset when it comes to making offers on repossessions? Thanks in advance!
-Sarah
It seems the standard is putting in offers for repossessions at asking price. My partner and I both work in the insolvency and bankruptcy industry, so we have another type of view when it comes to lenders - we see them willing to accept pence on the pound for their loans, including repossessions and shortfalls. Our view is to go in at least 10-15% below asking price, especially due to the fact that its been unsold for more than 6 months. Is this just naive? Do you think we've got the right mindset when it comes to making offers on repossessions? Thanks in advance!
-Sarah
0
Comments
-
Put an offer 16% under asking price.0
-
Do you know if there have been any offers on the property? Has the agent given any indication why it's still available after 6 months, especially as neighboring houses are so much more? I wonder if the lender needs to clear a certain amount and are holding out? It just seems strange that if it's such a bargain why is it not sold?My home is usually the House Buying, Renting and Selling Forum where I can be found trying to (sometimes unsucessfully) prove that not all Estate Agents are crooks. With 20 years experience of Sales/Lettings and having bought and sold many of my own properties I've usually got something to say
Ignore......check!0 -
A repo near me was on for ages for 115. They reduced it to 104 and it got shed loads of viewings and an offer.It's got to be purely about perception of bargain.0
-
MissMotivation wrote: »Do you know if there have been any offers on the property? Has the agent given any indication why it's still available after 6 months, especially as neighboring houses are so much more? I wonder if the lender needs to clear a certain amount and are holding out? It just seems strange that if it's such a bargain why is it not sold?
The EA wasn't much help to be honest. He didn't know the bank the outstanding mortgage was with. We didn't ask why it has been on the market so long. He said that his EA has been dealing with it since November, but the 14-day notice postings in the window were dated by the EA in early Sept.
As to why such a bargain hasn't been sold - I have my own ideas (the house has a damp problem, but has recently had new windows installed; one of the plaster ceilings is sagging). I think that if anyone has had a surveyer around they might have gotten news they didn't want to hear. We're prepared to invest more to do the improvements, where others may have not.0 -
EmmaAndSarah wrote: »The EA wasn't much help to be honest. He didn't know the bank the outstanding mortgage was with. We didn't ask why it has been on the market so long. He said that his EA has been dealing with it since November, but the 14-day notice postings in the window were dated by the EA in early Sept.
As to why such a bargain hasn't been sold - I have my own ideas (the house has a damp problem, but has recently had new windows installed; one of the plaster ceilings is sagging). I think that if anyone has had a surveyer around they might have gotten news they didn't want to hear. We're prepared to invest more to do the improvements, where others may have not.
I can only tell you the experiences I've had with Repo's recently...from an EA's point of view. I certainly wouldn't be offering asking price unless there were other offers on the table, which by the sounds of it, isn't the case.
If someone offers on a repo that I'm marketing and the offer is declined by the lender then I always try to get a figure that the lender is prepared to accept and then give the buyer some guidance......this helps to shorten the process and stop anyone wasting their time.
I would work out what the maximum is that you are prepared to offer and then go in just under that and see what happens.My home is usually the House Buying, Renting and Selling Forum where I can be found trying to (sometimes unsucessfully) prove that not all Estate Agents are crooks. With 20 years experience of Sales/Lettings and having bought and sold many of my own properties I've usually got something to say
Ignore......check!0 -
Thank you, Miss M.
We are prepared to go up to asking price, but we don't want to go in for that on our first offer. Is 16% a good guideline to start?0 -
Yes that seems fine.
Good Luck, let us know how you get on.My home is usually the House Buying, Renting and Selling Forum where I can be found trying to (sometimes unsucessfully) prove that not all Estate Agents are crooks. With 20 years experience of Sales/Lettings and having bought and sold many of my own properties I've usually got something to say
Ignore......check!0 -
Well, a few days later, we saw the house we were looking to buy in the paper, with the notice they need to place for reposessions. They have received an offer for 120K. My partner and I put in our offer this morning - 125K. Our thought is that if we were to offer just asking price, the other bidder may come back at 125K. At least now they would have to up their offer by 6K rather than just 2.0
-
Fighting over them! Repos are up in my area 40% I think it says in the paper. Plenty to go round!0
-
does not matter if it is a repo or not just put an offer that you are conftable with, you are usually not dealing with real people in the real market, just people that look at spredsheets. They will have a bottom figure that they are willing to accept and that it is0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.6K Banking & Borrowing
- 253.3K Reduce Debt & Boost Income
- 453.9K Spending & Discounts
- 244.5K Work, Benefits & Business
- 599.8K Mortgages, Homes & Bills
- 177.2K Life & Family
- 258.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards