Buying a re-possession

Float

Currently looking at a house on the open market for £169K, it sold for £249K in 2005.

Any tips or advice? If I like what I see after viewing it, should I offer the asking price - it seems a bargain.

What happens then? Can I be gazumped?

I have a mortgage offer on the table and a 60% deposit ready.

Thrugelmir

Float wrote: »

Currently looking at a house on the open market for £169K, it sold for £249K in 2005.

Any tips or advice? If I like what I see after viewing it, should I offer the asking price - it seems a bargain.

What happens then? Can I be gazumped?

I have a mortgage offer on the table and a 60% deposit ready.

2005 valuation has no bearing on its current value.

What are similar properties in the area selling for?

Have you viewed other properties in the area?

Don't offer the asking price. But be realistic in your offer if you are genuinely interested.

It may be a bargain for a reason.........

Float

Thrugelmir wrote: »

2005 valuation has no bearing on its current value.

What are similar properties in the area selling for?

Have you viewed other properties in the area?

Don't offer the asking price. But be realistic in your offer if you are genuinely interested.

It may be a bargain for a reason.........

A better one(2 garages, as opposed to 1) sold for £225K 15 months ago - that was the last sale on this estate of about 40 houses.

I know that prices in 2005 were overblown, but is a considerable drop in this case.

All being well, what would you say is reasonable to offer? About £10K less?

I am naturally cagey, but sometimes you have to take a calculated risk maybe?

Thrugelmir

Float wrote: »

A better one(2 garages, as opposed to 1) sold for £225K 15 months ago - that was the last sale on this estate of about 40 houses.

I know that prices in 2005 were overblown, but is a considerable drop in this case.

All being well, what would you say is reasonable to offer? About £10K less?

I am naturally cagey, but sometimes you have to take a calculated risk maybe?

Do try and view other property. Even some your not very interested in. As it does help in deciding whether this is the right one to make a home. Benchmarking the price with other properties also helps.

Have you got a mortgage in place? If so I would go in at £15k under on the proviso that contracts are exchanged and completion takes place within 4 weeks. You can only try. Best of luck.

Let us know how you get on.

Float

Thrugelmir wrote: »

Do try and view other property. Even some your not very interested in. As it does help in deciding whether this is the right one to make a home. Benchmarking the price with other properties also helps.

Have you got a mortgage in place? If so I would go in at £15k under on the proviso that contracts are exchanged and completion takes place within 4 weeks. You can only try. Best of luck.

Let us know how you get on.

Will do mate. Thanks. Yes a mortgage is in place.

johnson293

Float wrote: »

Currently looking at a house on the open market for £169K, it sold for £249K in 2005.

Any tips or advice? If I like what I see after viewing it, should I offer the asking price - it seems a bargain.

What happens then? Can I be gazumped?

I have a mortgage offer on the table and a 60% deposit ready.

To answer that one - yes, like any house purchase you can be gazumped up until you exchange contracts.

However, in the case of a repossessed house, a public notice will go into 'local press' stating what the accepted offer is, and inviting people to make a higher offer up until exchange of contracts - I believe this may also be the case if the asking price is offered, as being a repo the company selling the house has an obligation to get the best price possible to cover any debts, etc.

The time scale between them accepting your offer and exchange of contracts is usually set by the vendor and is genrally 21-28 days on a repo.

I know this as I am currently trying to buy a repo, and am being held up by the buyers for my house, otherwise I was in a position to exchange this week, but the 28 say deadline has been extended a further week to try and allow my buyers to sort their side out, and allow exchange to happen.

mandragora_2

It's nearly a quarter of a century since I last bought my own house, so I can't offer much on current market conditions - but ours was a repo, bought at the height of an overblown market -all I can say is:

scrutinise it carfeully - does it offer what you want?
can you afford it?
is it the best value around? (ie, make sure you know your local market)
can you see your life in that place for at least a few years?
do you love it, at least enough to do the work and make a commitment to it for the forseeable future?

If the answer to all the above is 'Yes', then go for it. It's a balance between the money you are prepared to pay and the minimum you can get away with.

Ours was a repo 23 years ago - long term, of course it paid off, but in the meantime we bought our kids up there, and put the work in to making it the fabulous family home it is today. Not always easy -but, on balance - worth it!!