buying repo house

ttocs

hi
been to look at a bungalow today and not sure if we should make an offer, As title says it been repossed so don't know if we should steer clear or go for it.
We are first time buyers, and not sure how much to offer if we go for it, its advertised at 70000 but needs about 15000 to 20000 spent on it, how much would you suggest offering?

vegasvisitor

Really hard to say since you have given no idea of the average price for a similar house with all work completed.

Do you have any idea?

ttocs

sorry forgot that bit would sell for pos 110000. , the bungalows a mess and 90%of the work on it would be done by myself and the sums still add up to 15k to 20k.

shane42

sounds ok figures wise, just depends if you like the house, offer low and go up to a point you are comfortable with

poppysarah

Ignore price of what it'd sell for when done up. If you're not planning on doing that it's irrelevant.
How much will it cost you to do up, is it mortgable? it is habitable without work doing? Do you have a mortgage in place? Do you have a huge deposit and lots of diy skills?

ttocs

got mortgage promise, got 10%deposit, it's habitable so can get mortgage on it, would need to loan money for work though, done the sums and can afford to do it,. Thinking we will probably do it up and sell it and hopefully make some money so we've got bigger deposit for a place we really want to live.
Is there anything i need to watch out for when buying a repossesed house?
cheers

partlydave

ttocs wrote: »

got mortgage promise, got 10%deposit, it's habitable so can get mortgage on it, would need to loan money for work though, done the sums and can afford to do it,. Thinking we will probably do it up and sell it and hopefully make some money so we've got bigger deposit for a place we really want to live.
Is there anything i need to watch out for when buying a repossesed house?
cheers

You'll need to speak to the utilities suppliers as I imagine gas, electrics etc will have been cut off, to make sure they will supply you and not insist on a pay meter.
And get a full survey.
The figures you are quoting seem to make the property a good buy imo.

ttocs

think i'll be alright with utilitys, theres no mains gas, it's fed from tank, also electric meter is already key meter so should not have any dept outstanding, just need to get them to change it to standard meter.

partlydave

ttocs wrote: »

think i'll be alright with utilitys, theres no mains gas, it's fed from tank, also electric meter is already key meter so should not have any dept outstanding, just need to get them to change it to standard meter.

Going back to your original question about how much to offer. The price they accept may depend on how much was outstanding on the previous mortgage. If theres £70k owing you may not get them to accept a lower bid, but worth trying a low starting bid. Do you know if anyone else is interested in it?

ttocs

estate agent had 4 viewings yesterday morning, so think there is a bit of interest.

partlydave

ttocs wrote: »

estate agent had 4 viewings yesterday morning, so think there is a bit of interest.

Have you checked any sale prices of comparable properties in the area to enable you to see if its viable paying 70K plus up to 20k doing it up? If you can sell it for £110 k then its still worthwhile.