Repossessed Property Buying: Quick Briefing Discussion

Doozergirl

wannaberich41 wrote: »

Hi
Ive come a cross a repo and when i called the agent on the weekend, they advised that they had only had it on about 6 weeks but it had been on with another agent previously she said about 1 year. The new agent has knocked about 10k off the asking price. Ive looked at prices of other properties around the same area and feel that it is over priced for what and where it is. I can only guess that it is the bank trying to get as much as they can back. How much below the asking price can you offer on a repo? Can you put in a offer before you have sold your own?

The fascias are rotten on the house and garage and looks like 2 doors would need replacing. All the windows are wood and the conservatory ds wood and are looking a bit sorry. The garden looks like a jungle.
Thanks in advance.

You can put in whatever offer you like. If it has been on the market for a long time then no-one thinks it's worth what is being asked so I would feel comfortable offering low.

However, and it's a big however. They will not even entertain your offer if you are not proceedable and under offer yourselves, so it would be a case of holding your breath until you can get an acceptable offer yourselves. The lender will expect to see proof of your ability to purchase.

paddedjohn

I purchased a repo in 1995 just as the market was picking up again, 6 bed semi advertised for 65k (i found out later that the defaulter payed neary 90k just 4yrs earlier) which at the time was a lot, i agreed on 61k with the building society and just as we were ready to exchange i cheekilly lowered my bid to 57k and was accepted. moral of the story is it doesnt hurt to try.

saroof

Hi

Can anyone help/advise?

We put in an offer on a repo which was accepted and all going smoothly, even after the public notice. Then we were contacted by EA and told that someone had put in an offer, they were a bit cagey about it all but we suddenly found ourselves in a bidding war. Weve gone up in price 4 times, first 'best price.' then 2 interim prices before being asked for our 'best and final.' Each time we were given time constraints which didnt seem to apply to the other bidders. Our 'best and final' has just been accepted but I'm very dubious and considering dropping out despite being out of pocket quite a bit already... Big question is - If we dropped out now can we still come back with an offer when the other parties offer goes public (if there is another party)???????
Weve been told by our EA we cant, anyone except us can put in an offer if we drop out now.
This seems strange...can anyone advise

harryhound

I think the law says the agent has to inform his principal of ALL offers received.

yellowsamba

Hi, does anyone have any experience with "Choices"? A company that offers reposessions. They charge a fixed joining fee of £250+VAT, but others seem to be offering their services for monthly fees. Anyone have any advice? Thanks.

d1ngus

Hi all,

I am a first time buyer with a 15% deposit (and a bit left over just to be safe) just about to place an offer for a repo'd flat in Scotland. The flat is a new build valued in the home report at 100K and marketed initially for offers over 90K and that has now been revised down to offers over £85,500. The flat is in good condition only niggles are

A couple of bits of damp coming through in the bedrooms (factors have already fixed the roof when I pointed the water out after my first viewing and the holes were dry on my second viewing).
Cosmetic damage to the front door (due to bank having to break in to repo) and a broken living room door handle.
There also aren't any keys to the windows but as it is a 6th floor flat this doesn't bother me.

Except from the above niggles the flat only needs a clean and a touch of decorating.

Other similar flats in the area are being marketed at between 105K (1 bed) and 118K (2 bed) and the flat I am looking at sold in 2007 for just shy of 150K. Flat has been on the market since the end of September.

I am considering putting an offer in of 80K and see what they say to that but I am wondering if that's too low/high to go in initially as I know the same EA has another property (1 bed) in the same area that has been on since January and has dropped from 110K to go to auction at a guide of 80K.

My main queries are:
Is the initial offer too low or high ?
Does anyone know of any good guides for buying a repo in Scotland or have knowledge of buying one ?
As gazumping is illegal in Scotland but starting a bidding war between interested parties isn't, does the EA have to prove the other bid to myself or my solicitor ?


Any help/advice will be very welcomed

GDB2222

Are there any recent sales of comparable properties to compare with? Asking prices are not much help, really, as anyone can ask what they want.

On the face of it £150k in 2007 down to sub £100k now looks a good deal. However, a lot of new build flats sold at that time had major hidden incentives for the buyers. It's entirely possible (in fact, likely) that the original buyer paid much much less than the £150k on the paperwork.

plant007

Hi

I wonder if somebody could help me clarify a point regarding the the value of repo/auction properties against market values. The 'Buying Repossession' article states;


How much cheaper are they? - Prices are anything between 10% to 30% off market value


Does this mean that after you have renovated the property up to market standard, they are then 10-30% cheaper than market value or does it mean that a house bought at auction is 10-30% cheaper than market value, and then you have to factor in any renovations, making the difference less?



Think its the latter but thought I would check
Thanks
Andy

tall_d_and_h

There is a very good reason these propertys are going to auction. Every man (and his dog) have gone through a lot of these propertys in many cases this the last hope the vendor has, I have seen most, No back wall half. a mile of drain(which of coarse you are responsable.)settelment is the norm .lost paper work( what exactly are you buying )it is endless YOU ARE NOW PLAYING WITH THE BIG BOYS itis not agame for the inexperianced and short on cash, just because you saw it on television and it made a profit Sorry folks itis not what you want to hear but its the truth

tall_d_and_h

Still want to buy at auction? go to How not to bid at auction( it has its own web site or on u tube) its sad two women loose at least 15000 pounds, lost in a moments madness and its happening in different forms again and again.