Trying to buy repossession: typical estate agent messing me about

huntaaar

Hi all

I am interested in buying a repossessed property being sold by an estate agent on behalf of a bank.

Went to view on sat, loved it (had been researching it for a while anyway, floorplans etc so not too rushed), so made an offer of the asking price.

Estate agent said lots of people were thinking about offered etc etc etc

He also told me there would be a 7 day period after offers to make additional ones before the property was presented as “under offer”. I believe they advertise right up until closing with these types of properties.

They phoned me today and said our offer was rejected as they had received a higher one. This was expected but when I enquired about the timeframe to amend my offer the agent’s story had changed. Now he was all “need to get it in by tomorrow” and they aren’t going to have the 7 day period” etc. Now my estate agent !!!!!!!! alarm starting ringing so here is my question.

What exactly has to be done with repossession and what doesn’t? Are there any set guidelines for these types of sales?

Any advice welcome with thanks

princessamy86

It is entirely down to the lender with regards to setting timescales for offers etc. It is possible the lender originally said there would be a 7 day period for offers, which has then changed as they have received an offer which is acceptable. Just to set you straight, it is nothing to do with the estate agent which terms the lender imposes! As a general rule offers on repossessions are advertised in a local paper, and offers are invited right up until exchange of contracts. However, different lenders have different rules so it might be that they have an offer they are happy to accept and they will stick with this one.

Do you think it is worth putting in a higher offer for the property? If not, leave your offer on the table and carry on looking at other properties. Ask the agent exactly what the procedure is, will the offer be advertised etc, then you can make an informed decision.

maninthestreet

Maybe there are no other offers, the EA is just trying to get you to make an increased offer. You could call his bluff by stating you don't think the house is
worth more than the asking price. If the EA is making up stories about there being a higher offer on the house, they'll be back to you pretty soon telling you the other 'offer' has been withdrawn......

pastmybest

Just why is the EA messing you about as per your title?

They are doing their job in getting the best price and bear in mind the poor person/s who did live there and whose future depends on how much they get out of the sale, or how much they are, or are not, in negative equity.

maninthestreet

pastmybest wrote: »

Just why is the EA messing you about as per your title?

They are doing their job in getting the best price and bear in mind the poor person/s who did live there and whose future depends on how much they get out of the sale, or how much they are, or are not, in negative equity.

The OP isn't a charity that helps out people who have had their home re-possessed. If the EA is lying to the OP in order to fool them into making an increased offer, then the OP has every right to feel aggrieved.

pastmybest

maninthestreet wrote: »

The OP isn't a charity that helps out people who have had their home re-possessed. If the EA is lying to the OP in order to fool them into making an increased offer, then the OP has every right to feel aggrieved.

If the EA lying?????

All people are capable of telling lies, even buyers and sellers, as well as the EA. It is a fact of life today.

But I still say the EA is doing ther job and if they were acting for me I would want them to get the best price. The repossessed party is also NOT a charity and nor is the bank in the middle. They are not there to subsidise people who can't afford the higher price.

The grievance seems that the suggestion is the EA IS lying which I do think is silly.

wodgerdodger

The Lender is duty bound to get the best possible price for the property, not just sufficient to cover the mortgage,.In the event of a complaint from the ex owner that they did not achieve the best possible price then they would have a good chance of successfully suing the Lender in court.

As others have stated the EA , under instruction from the Lender, would normally post an advert locally stating they had received an offer of so much and seek better offers before a set date.

Do you know who the Lender is? you could do a Land registry search and find out and approach them direct if you feel so certain that the EA is playing silly !!!!!!s.

huntaaar

pastmybest wrote: »

Just why is the EA messing you about as per your title?.

Because he clearly stated one process one time then I felt tried to rush me into making an increased offer after moving the goal posts.

Maybe he didn’t move the posts himself, maybe the title should read messed about by EA or Seller but to be honest I just wanted to find out what procedures need to be in place and what don’t.

huntaaar

princessamy86 wrote: »

It is entirely down to the lender with regards to setting timescales for offers etc. It is possible the lender originally said there would be a 7 day period for offers, which has then changed as they have received an offer which is acceptable. Just to set you straight, it is nothing to do with the estate agent which terms the lender imposes! As a general rule offers on repossessions are advertised in a local paper, and offers are invited right up until exchange of contracts. However, different lenders have different rules so it might be that they have an offer they are happy to accept and they will stick with this one.

Do you think it is worth putting in a higher offer for the property? If not, leave your offer on the table and carry on looking at other properties. Ask the agent exactly what the procedure is, will the offer be advertised etc, then you can make an informed decision.

Thanks, sound advice

princeofpounds

It's pretty clear he is lying. There might or there might not be a higher offer, but all this stuff about 'tomorrow' is likely to be rubbish. Repos have to advertise in the press for higher offers once one has been accepted and wait a certain period of time, and this is not going to happen in the next 24hrs.

I think it's fair to be aggrieved that one is being lied to. Simply being an economic actor on the other side of a transaction does not remove the requirement for normal decent human virtues like honesty.

princessamy86

I'm an EA and we deal with a lot of repossessions, it happens a lot where we are told one thing and then suddenly everything changes. We've just had one which was 2 days from exchange and the person who had handed the keys back decided they wanted to move back in-I didn't even know this was possible! Make sure they submit your offer (ask for written confirmation), and then take it from there. In my experience, it is rare that agents make up offers but reading some posts on here it would seem it does happen.

I have to say though-there is not much point an agent making up an offer on a repo, as the asset management group generally want immediate proof of funds and an indication of timescales to proceed, coupled with a very tight selling timescale often of less than 4 weeks. Agent fees are generally 1% on these type of instructions, so don't feel like an extra £1000 or so on the sale price is going to make a vast difference to the agent. Everything on these sales is dictated by the lender, and tbh they're a right pain in the behind 9 times out of 10!