Supposed to be exchanging on repo tomorrow!!

karenthemummy79

Hi - Just looking for a bit of advise - we are currently in the process of buying a repo without selling our house 1st so have had to lend the 25% deposit from family with the intention of repaying them when our house sells.

The repo was on the market for £149950 and we offered £145k and were told that 2 other people had also offered on the same day so it was going to final bids. Me & my Grandad went to the EA later that day and offered the asking price to try and clinch the deal and the offer was accepted! While the EA was upstairs on the phone to her 'client' I noticed a letter on her computer screen to one of the other bidders stating their offer was £140k and then I overheard (nosily!) her say on the phone that the other bid was £135k!! I was annoyed that it went to final bids as our offer was highest anyway! They then said it was accepted subject to a 28day exchange and a public notice!!! I was unaware that there was going to be a public notice so with my knowledge of the other offers in hand, retracted my offer and reduced it back to 145k saying that if I had known there was going to be a public notice, I wouldnt of panicked!! We agreed on a price of £147500 and we are 27days down the line!!!

There are a few issues: My solicitor is struggling to get hold of the NHBC or the architectect plan as the house was only built in 2003 and the other side are dragging their feet getting this info. We also have an issue with the title on the land!! The driveway and 2/3rds of the garage arent included within the title but apparantly we can claim adverse possession of the land as it is unowned and fenced off and looks like an error was made when the title was done. We also have a prob with keys - I was lead to believe that when a house is repossessed, the company normally change all the locks, well this hasnt been done and we only have 2 keys and the keys for the french doors in the dining room, french doors in the bedroom and the garage are all missing!? We havent even seen inside the garage so dont know if there is power, a floor or anything!!

It is looking unlikely that we will be exchanging tomorrow due to all of the above and I am wondering what the implications will be as it is their fault not ours!!!

Also, our house is on the market for £149500 but we havent had a single bit of interest and we really need to sell so I got a different EA out yday and they suggested for a 'quick sale' that I reduce the price to £139950!!!!! which is massively below the others in the street and our house is lovely! (even if I do say so myself!!). I am really panicking now because we NEED around 145k to be able to repay the deposit that we are borrowing and am now wondering if I should consider reducing the price of the house we are buying right at the last minute???!!!!

I know this is REALLY long but any advise would be GREAT!!!
Thankyou

zcacmxi

If I was in your position, I'd be asking myself the following:

Why have I not even had viewings on my own house, but another house that I want to buy has 2 other offers very near the asking price?

Is it because repos attract a lot of interest, and there are actually 2 other offers? Or is it just a tactic the agent used to get you to increase your offer?

It could be that the Repo is worth a lot more, so the low asking price is attracting a lot of interest, and your house is worth a lot less so the asking price is not tempting anybody!

Unless the Repo you are buying is a fantastic bargain, I'd be tempted to try and renegotiate the price down or pull out.

karenthemummy79

Thanks for your reply. I did believe that we are getting a real bargain with the repo until I saw the EA yesterday that told me how much some houses have sold for recently!!!! The house we have now is a 3 bed semi and the one we are buying is a 4 bed detached on a big plot and fantastic views of the sea so I still think it is a good buy but I suppose I am just panicking about not getting enough for our house and being left short!!!

I know gazundering is a very 'nasty' thing to do if it is a 'normal' purchase but when you are dealing with companies, you dont feel quite as bad!!!! I would hate to push my luck then they decide not to deal with us anymore!!!

I just feel that since we agreed that price there have been a few things, like the prob with the title, the prob with the keys and we also have a condition on our mortgage that we have to have a boiler fitted and a sink and tap put in the kitchen between exchange and completion.

I know that it is bought as seen and we knew it needed a boiler and kitchen etc but I just wonder if it worth a go reducing the price to cover our backs a little with our sale?!

I know the other bids were legitimate as I said in the prev post I heard her conversation and saw the letter on her computer but they have admitted the EA and the client werent expecting to get the asking price at all so I hate to think we are paying more than we need to!!!!

Do you think that if we reduce the offer, as a company, they will just turn it down and say 'like it or lump it'?!

cattie

Even if you do reduce the offer & it's accepted, the property & price offered will have to be advertised in the paper, so you leave yourself wide open to it being brought to attention of other potential bidders who may be prepared to offer more than you.

It's common for repo's to need new boiler, kitchens & sometimes bathrooms. Often the previous owner's will have ripped them out to sell on once the repo proceedings are nearing completion, either to get a little bit of cash in their pocket or through anger at having lost the property.

zcacmxi

Given that the repo company do not take it off the market, and actively promote the sale price in the form of public notices until exchange, it is highly likely they'll try and Gazump. They are actively trying to do that, it is part of the process, "Trying to get the most money for the bank to reduce what is owed by the previous owner".

Without knowing the exact value, it's difficult to know what to do. I'd:

1) Look at the estimate on Zoopla.
2) Look at the estimate on Mouseprice.
3) Look at what it was last sold for and extrapolate to todays price using https://www.nationwide.co.uk/hpi.
4) Consider the availability of other 4 bed detached houses in that area.

Ultimately, if the price agreed is favourable based on the above I'd proceed. If it is not and alternatives are available I'd try and renegotiate.

karenthemummy79

I am aware of the fact that most repo's have things like the kitchen taken out and the property hasnt been mishandled in any way - they have just taken anything of value and that is it.

If we did reduce the price and they agreed, would that delay everything massively because we would then need new contracts with the new amount, amend the mortgage etc - because I dont want that - I think I was thinking it would be alot easier!

To be honest - I just want to exchange contracts and be done with it!! then it is too late to go back or think about price as it is really stressing me out!!! I NEED to sell my house and really dont know what to do!! I dont want to give it away!!!

karenthemummy79

Please dont tell me they will try to gazump!!! We are supposed to be exchanging tomorrow!!! Surely we are too far down the line now for them to accept another offer!!!

karenthemummy79

On the title document - it states that the prev owner bought the property in June 2004 for £185000 so I guess my £147500 is a good price?!

There are 2 houses pretty much the same on rightmove - one incomplete for £215k and one directly behind the one we are buying is on for £275k!!

Next door is on for offers in excess of £260k!!!

(they are all new builds by the way - that is the reason for a few being on the market!)

Have a nosey on rightmove if you like - search for Trelogan, Holywell as long as you dont gazump me!!!!

suisidevw

put a link of the house up here. Sounds like a good deal if the houses nearby are going for those prices!

SouthCoast

they suggested for a 'quick sale' that I reduce the price to £139950!!!!! which is massively below the others in the street and our house is lovely! (even if I do say so myself!!). I am really panicking now because we NEED around 145k

What happens if you are unable to sell your present house?

Gambling on property in a falling market is not advised.

maryotuam

You need to reduce your house price. If you can't accept a lower offer then you won't be able to go ahead. House prices are still falling and have a good way to go yet before we reach the bottom, according to most experts.

How about suggesting offers OVER £139950 and see what happens?