Repossession Offer

paulsin

Hi all. Me and my partner are having a bit of a dilemma.
We have seen repo and arranged a viewing for it on Saturday just gone. The thing is, an offer was put in and accepted a day after we arranged the viewing. We really liked it and are confused as to what to do. After a few questions from 3 different people we have worked out that the current offer is by a couple who are in the process of selling their home and will be buying this cash, however this has not yet happened. I assume they have a buyer, but we have been told that they have a house to sell but can move quite quickly.

Me and my partner are first time buyers and are currently moving back in with parents as we are relocating so we wouldn't even have the notice on a rental to serve out.

Basically I want to know what to offer. The current offer is 175, right on the stamp duty threshold. We can afford a bit more, but was wondering whether putting in an offer of the same value would help. Although they can move quickly, we can move quicker plus their sale may fall through. Does anyone have any experience of companies accepting offers.I know they can always outbid, but is it worth us going in the same or not. Please bear in mind this offer has been accepted for 2 business days only, so not far along in the process at all.

poppysarah

Find another property. don't overbid at this stage of the housing market.

repos= stress.

stolt

i agree with poppysarah, you may over bid then 4 weeks down the line someone could do it to you! and then where do you go. unfortunatley you will be dealing with a bank not a person that has lived in the house previously they just want as much as they can get for it.

Trollfever

by a couple who are in the process of selling their home and will be buying this cash,

Have they actually exchanged contracts on their sale?


.

G_M

The bank is unlikely to walk away from an offer they have accepted for a new offer at the same amount. You'll have to outbid or walk away.

GDB2222

I would put in an offer of what you think the house is worth, but don't over-bid or get in a bidding war with the other people. So, it sounds as though your offer should be no more than theirs, perhaps a bit less. Then sit back and relax. If the other people's sale goes ahead, they'll get it. If their sales breaks down for some reason, you'll be next in line.

cattie

If the other couple have made a cash offer then it's very unlikely to be dependent on the sale of their house.

Especially as it's unusual for a lender to accept an offer from anybody not in a proceedable position. Lender's usually want the sale to complete within 28
days so expect people to have their finances in place to achieve this.

As others have said, unless you can beat their offer, there seems little point in making a matching one.

paulsin

Thanks for the responses. The only reason we are considering stretching ourselves is because it is well below market value. Average house prices for this house on the same estate are 30-40k min in this market, not for sale prices, but actually sold prices.

Cattie- I'm trying to piece together a story by discussing it with various people as no one person will give me a straight answer; however when asked if they had a house to sell I was told 'they are buying the house for cash, from the proceeds of the sale of their house'. Asking again I got the same response. So I'm guesssing that they havent yet sold it but have a sale agreed.

I'm trying to assess how to deal with a repo purchase. If we put in an offer of similar and it gets rejected, will any subsequent offer be affected? Are we able to increase our offer easily? Does anyone have experience of a situation like this?

Bottom line is I understand we can always be outbid, but I'm just trying to get some experience from others before we place an offer so that we can get it for the best price.

Thanks again for your responses.

GDB2222

Well, as soon as you go above £175k, that's an extra £1.75k in stamp duty. So, if you go for a reasonable over-bid, ie £180k, that will actually cost you nearly £7k more. Even if you do that, the lenders may well stick with their original purchaser. Or the original purchaser may just increase their offer to match yours. So, your chances of getting the property at that price are quite slim.

If you go in with an offer of say £200k, you'll certainly grab the lender's attention. However, that makes the house hardly a bargain at all. And of course you may still not get it, as the other couple may increase their offer.

Of course, if it turns out that the other couple cannot sell their house after all, the lender will turn to you, but you'll then almost certainly be stuck with a higher price because you've bid it up.

So.... well, see my post above. Also, accept that you probably are not going to get this particular house.