FTB - offer on a repossessed property - how much?

helenic

Hello

Looking for some advices from people more experienced than us as we have found the property of our dreams and we do not know how to tackle the situation
The property is on the market for 229k. Trying to learn more about it from the agent, we have been told it's a repossession. So far so good. The hard part starts now
The property is very big but in poor-ish condition. We are ok to borrow 240k (based on our broker's advice, although we do not have an agreement in principle from the bank yet) and looking at the prices on similar properties sold on that street, they vary between 195k (mid last year) to 235k (Feb this year). Being in a poor-ish condition is there any risk for the back not to lend us what we will offer? Gosh, I don't even know where to start
There are two offers so far and obviously we do not know for how much. What would you offer? Would you go below the asking price, above or match it exactly? Are they any issues that we need to be especially aware of with regards to these type of properties?

All your input will be very much appreciated. Do not think you should not share your thoughts just because it's a big decision and we do not need to be influenced on this. I have a mind of my own and hopefully will be able to go in the right direction.

Many many thanks in advance to all of you who will be so kind to share your ideas

Helenic

cattie

With a repossession the lender is legally bound to try to get the best price they can for the property.

If there are two offers in so far & neither have been accepted then they are hopefull of getting a higher price. Try going in a little under the asking price & if it isn't accepted you can always raise your offer. It is normal for repossessions to be advertised in local press once an acceptable offer has been received, inviting any higher offers to be put foward within 7 days, so because of this you are always at risk of somebody offering a better price than you. You say it is the house of your dreams, so with this in mind you should make your offer a strong one if you really want to secure the house.

If you are interested you need to get your agreement in principle asap so the estate agent will know you are a serious & proceedable prospective buyer. Sometimes with repossessions the status of a buyer can play a part in whether one offer succeeds over another of a similar or higher amount. Someone with a mortgage ready & no property to sell can have the edge.

If your lenders valuer doesn't think the house is worth the price offered then yes the lender will adjust the amount they are prepared to lend you accordingly.

helenic

Cattie,
Thank you for such an elaborate answer. I'll keep you posted with the result.

boy_3

I would start around 190-200K (80-85%) for the offer. You can always increase it later.

Jorgan_2

Find out from the EA if they will be posting a seven day notice in the local press once an offer has been accepted, not all lenders require this, so check. If they are, you will see what offer has been accepted & decide where to go from there. If not, you will have to put an offer in, how much is up to you, to see what reaction you get.

Don't expect a massive amount of the asking price, it will have been set to reflect the overall condition of the property. The majority of lenders will get the property valued by 2-3 surveyors & at least one agent, before setting an asking price.