possibly going to offer on a repo in Scotland

LilacPixie

I can't decide if I am mad or just have a thick skin.

We have been to see a repo, nice size decent area but is basically a shell. The selling bank has put a price tage on it of roughly 7% less that properties in fab condition have sold for recently in the same or next street. I calculate that to bring the house up to that standard it would take roughly 30k of work. I therefore want to bid 30k less than they are asking for the property.

I have spoke to the selling agents and they say there has been no interest in it at all and the client is willing to listen to offers.

My bid would represent around a 25% discount on the asking price but literally we are buying this as our home and it is not worth any more than that to us.

OH thinks we stand no chance of getting it accepted and shouldn't bother, I think if the bank are desperate enough to get it off their books they will consider any offer and I feel it is reasonable considering condition of property.

Am I mad?/

BitterAndTwisted

The bank will want shot of it but I don't think they'll be desperate. It's not like it's a £10m mansion and even then that wouldn't be that significant in the big picture to a bank.

Do you really think that the initial 7% drop in the price-tag is a significant enough reduction considering the condition? Will you have to live in it while the work is being done?

I'd go with the lowest offer you can think of. There isn't any other interest so you can always put in a higher offer if/when they decline.

googler

Tell us what you mean by a 'shell'.

I take that to mean a wind and watertight building with no kitchen, no bathroom, no electrics, possibly no internal doors, etc etc...

What does it have at the moment, kitchen, bathroom-wise?

theartfullodger

Go in with your lowest offer: Don't just offer money, explain why you are a good purchaser (eg will be buying for "cash", there is no chain, you understand the Scottish Legal system and are not a head-in-the-clouds tourist from down-south, you already have a solicitor lined up who you have discussed things with, the mortgage is arranged in principle, you know it is a shell but will live with that for 6 months, you have a thick skin , etc. etc...)


Make your offer.. See what they say. If they ask for more £££s I would advise saying "Thank you no, but our previous offer stands" then sit tight & pray...

Cheers!

Lodger

LilacPixie

It has walls, roof needs attention with some missing tiles Guttering missing in some sections and others corroded and blocked with vegitation, needs totally rewired and electrics are a mess with signs of burning at some plugs. bathroom there but sink and toilet both cracked and unusable. there is internal doors central heating present but looks ancient and no one knows if it works let alone if it is safe so in my mind that needs replaced. Windows are double glazed but the seals are blown in most rooms.

Internally almost al interior walls are damaged to some extent. ceilings in bathroom, livingroom and bedroom 1 have large holes in them and need replaced totally. Outside the garden is a jungle and looks like it has been a dumping ground for everything, husband is predicting 4 skips to clear it.

Bitter - a 7% reduction is no where near reasonable IMO I would be thinking closer a 30% reduction to be honest.

Artful - that is prettymuch spot on, we do have a solicitor, we have agreement in principle and the added bonus of the repo is a street away from my parents so a few days without cooking facilities is ok.

If we bid then we are bidding for a family home not an investment however I refuse to pay over the odds for it

Primula

Get your Solicitor to put in your offer in writing. They can only say yes or no. You might be pleasantly surprised. Dont think your Solicitor would charge for putting an offer in.
Good luck.

zappahey

Primula wrote: »

Get your Solicitor to put in your offer in writing. ... Dont think your Solicitor would charge for putting an offer in.
Good luck.

In Scotland, offers are typically made through solicitors anyway as, once accepted, it's binding so it's important to make sure that the offer is properly worded to protect the buyer. They most certainly do charge for it.

googler

zappahey wrote: »

In Scotland, offers are typically made through solicitors anyway as, once accepted, it's binding so it's important to make sure that the offer is properly worded to protect the buyer. They most certainly do charge for it.

Not all of them. Lots of those in my neck of the woods make a selling point of not charging for unsuccessful offers.

(However, I see the OP is in Tayside; I'm not - so things may be different there)

jackieb

I put offers in on 3 houses before buying my present one. I wasn't charged by the solicitor for any of them.

zappahey

jackieb wrote: »

I put offers in on 3 houses before buying my present one. I wasn't charged by the solicitor for any of them.

I stand corrected, I haven't bought a house in Scotland since 1997.