offering on a repo

shopaholicsan

Hi,
I made an offer on a repo house through a local estate agent. It was rejected, I increased it slightly and it was rejected again. I can't get any info from the estate agent about how much the finance company are likely to accept other than "only a few thousand under the asking price"

The agent suggested leaving it a week so I was wondering if the finance companies have a set time that they leave properties on the market before considering best offers to date.

The agents are also being vague about how long the property has been up for sale - different people have quoted anything between 1 and 4 weeks.

Does anyone have any advice on the best way to play this so that I get the property for the best price??

Many thanks
Sandra

Doozergirl

How quickly are they rejecting it? How far below asking price are you going exactly?

From what I understand, there is a mandate price which the estate agent knows. If the offer is under this then it really should be referred to someone at the mortgage company, in which case it can take time to get a reply. If it hasn't been on the market for long then I guess they would be lesslikely to sell for below that price until the ebb of time shows that people aren't prepared to pay what they want.

shopaholicsan

Thanks for that,
The house is up for £99,950 but has been vandalised and a builder friend of mine who came to view it estimated about £15,000 to repair everything. I offered £80,000 then £83,000. I can go up more but don't want to if it is too early in the game!
Both offers took a few hours to reply to and the first one came back with a request to prove my financing before they would even hear the offer which suggests they were putting forward the offers.
Any further advice welcomed thanks

The_Economist

Erm would this help, might not be the the answer you are looking for but maybe worth a look,
http://www.moneysavingexpert.com/mortgages/buying-repossessions
http://forums.moneysavingexpert.com/showthread.html?t=1792711

jeffmasson

i am also buying a repo i offered 155k and the place was up for 175k they said no so i up it to 160k they said no i did not think it was woth anymore that that nor did the ea so i said i would re-submit in a week 3 days later the ea called to say they would now take 160k. it had been on for 3 week. had the survay done and its come in at 160k so luck i did not go any higher.

as its a bank selling they will have a sliding scale of what the will take vers how long it been on the market.

good luck

redlady_1

The longer it has been on the market, the more desperate they become to sell and so the more open to negotiation.

kazire

hi mabe you could answer this ? does repo houses come with hips??

jeffmasson

kazire wrote: »

hi mabe you could answer this ? does repo houses come with hips??

yes all house that are put up for sale have to have a hip.

and there are just as useless as the rest. even thow the repo we are buying is being sold by rbs our lender natwest (owned by rbs) still requier us to pay for hip insurance or do new ones.:mad:

kazire

what is hip insurance?

jeffmasson

kazire wrote: »

what is hip insurance?

it covers you and your lender incase the searches missed something

kazire

hmmm all these extra things to add on to the sale price of a house hey!! but they know we cant just not have them ie solicetors and stamp duty grrrr its sooo annoying