Offer refused on a repossession

Milliewilly

roger215 wrote: »

Hi,
Two weeks ago I made an offer on a repossessed property, the agent asked me to prove my funds etc and sent me written confirmation of the offer. Yesterday I phoned the agent and was told my offer had been rejected as a higher offer had been accepted by the bank/agent. I asked what offer had been made but was told that they could not tell me and that I had to wait 10 days for the offer to be published, it would be only at this time that I could make a higher offer. The agent went on to say that even if I was to offer a higher price at this time that it may be refused as the buyer may be a near to completion and in a stronger position. The agent refused t.o accept or put my higher offer to the seller before the offer was published
Is this correct as I would have thought the agent should have phoned me the moment someone made a higher offer and gave me the chance to ammend my bid, I also would have thought they should have put my higher offer to the seller as soon as I made it today instead of refusing to accept it.

My understanding is you can make offers until exchange. Having to wait until the price is advertised (often it isn't) is a diversionary tactic from the agent. Legally they have to put forward all offers. Normally they will tell you the other buyers position but not the amount bid. I would ask to speak to the owner of the Estate Agent and make a complaint. The thing is it looks like palms have been greased here and the agent is going to sell to who they want to rather than the highest offer.

Doozergirl

Running_Horse wrote: »

It's not just best price. The other bidder may have bid substantially more, and also have been a cash buyer with a proven record of such purchases. No doubt the price will become apparent shortly.

Just out of interest, how much below the asking price did they bid?

Maybe, but if the OP has not been given the opportunity to bid higher then due process has not been followed. The general idea is that if there is more than one interested party, they should bid until one drops out. The agent is being at best lazy. Cash helps but a mortgage offer in principle and a decent deposit doesn't count for much less.

Ian_W

Running_Horse wrote: »

It's not just best price. The other bidder may have bid substantially more, and also have been a cash buyer with a proven record of such purchases.

From the Council for Mortgage Lenders:

After your lender takes your property into possession they have a legal duty to sell the property for the best price that can reasonably be obtained.

If the other bidder has offered substantially more - it will only be the best price if the OP doesn't beat it! As to the other considerations you raise ... do they really trump a "legal duty" if the OP can show they are a proceedable purchaser?

There is also some other CML advice suggesting that where there is more than one interested party sealed bids may be considered best practice.

As DG says, the EA (or possibly the lender) is at best being lazy, at worst ... well you work it out!