Buying a reposessed house

Becky1983

Hiya,

I wondered if anyone could offer me any advice. I would be very greatful!

We are first time buyers with an agreement in principle.

My partner and I have looked at a reposessed house, it needs a lot of work but we love it. So far 1 other couple have seen it.

It still doesnt have a price although we have been told it will be between 50-60k (estimate). Once the estate agents get the price at the end of next week it will be advertised.

I am going back to view it on wed with my brother, who works in the building trade and an electrician to get an idea of any works needed, incase we did want to put in an offer so we understand what future costs we may end up with.

If we want this house what is the best way of getting it. We know that they have to get as much for the house as possible but I wondered if they would make any deal at all. ie/ if we say we would give them full asking price could they not let anyone else see it. Or is this just not possible?

Also when it comes to making the offer if we offer the full price are we more likely to suceed?

We are in a good position to proceed quickly but just not as good as a cash buyer.

we are just concerned we may have an offer accepted then get gazzumped and end up paying for a survey and legal fees still. I know this could happen with any house but we want to reduce the possibility where we can.

Also if the house is advertised for a week inviting higher offers do we wait until the end of that period to get a survey or do we still get it done right away knowing they are inviting more offers.

Im sorry if my questions appear to be silly but everything seems a bit confusing when you are first time buyers.

Thanks.

Kez1983

I was a FTB that completed on a repo house 2 weeks ago. Do thorough research into local property prices and work out what you think is a fair price adding in all the work it needs doing, put an offer in at that price. There is never any guarantee that you will get the house until you actually exchange, mine was advertised until then (and a couple of days after!!), and it could end up in a bidding war so be sure what your maximum is to pay.

As for the actual buying process just make sure everything you do is as quick as possible, I was lucky to have a great mortgage advisor and good solicitors that made it so I completed in 25 days. And even then I nearly lost out at the last minute, but I had a good relatonship with the EA who helped it go my way!

Overall the most stressful days I have ever had, but I love my house!:j So was all worth it in the end! Hope thats of some help!

Becky1983

Hiya Kez, yeah thats really helpful, how quickly did you get your survey done? We are in a position to put an offer in as soon as the price comes up. We just arent sure what to offer in relation to the asking price. We might come in a bit below based on what you said. We just want to secure it as ours!lol!

The houses next door sold for 120,000 in Dec 2009. So I think we are going to have competition.


Thanks. x

Becky1983

PS, congrats on getting your house! x

seven4774

Hi Becky

We are just in the process of buying a repo house and it is very stressful as even if your offer is accepted and you start the process

there is no guarentee as the bank has to get the best offer they can for the house

and as such it is marketed until you exchange contracts at which point it is yours

you need to have everything you can in place to move as fast as possible

so apply for your morgage asap

the estate agents also have to put your offer in the local paper to advertise the offer accepted price (which can drive the price up)

one thing we have learnt from this experience is don't use a big lawyer firm as you are just another fish in a very big ocean to them

use a morgage broker who has a team behind them - (we use sequence homes - who were excellent) as they are able to chase your morgage daily in our case!!!

make sure you get on well with the esate agent because if they want you to have the house they are reluctant to show other people round

be prepared to up your offer !

AND MOVE LIKE THE WIND ON IT!!!

good luck

G_M

Don't get too emotionally involved. Repos are a nightmare and there are NO guarantees. You could start by offering ABOVE the asking price - still no guarantees!
Use a solicitor you can visit so if something needs signing there's no postal delay. And try to negotiate a 'no sale no fee' arrangement with the solicitor as you have a good chance of being gazumped at the last minute, after running up costs.

Becky1983

Thanks Steve,

The mortgage is ready in principle, my mortgage advisor is fab, works on his own but lives just down the road from me and calls us frequently to help us out. He is going to ring the mortgage lender on monday for us just to check if they would definately approve a mortgage on the house, as it has no lights in it and only half a kitchen.

The sink has been removed but the estate agents are going to put one in to make the property mortgagable.

The estate agents know we are interested as I asked for a second viewing but they have asked us to go in with out agreement in principle and financial details for them to check them over again, incase we do make an offer.

I said we had already been approved for a mortgage as I thought they were going to try and get us to go through there mortgage advisor, but they said it would just mean if we made an offer it would go quicker as they would know we had the money. They said all estate agents do this for repo prooertys, is this true?

We dont know the price yet as they are waiting for the survey results, but they have a good idea of what it will be. so although we like it we wouldnt pay over the odds.

So I dont know if we are ahead of the game already or going the wrong way. We are hoping to put in an offer as soon as they get to us with the valuation. The estate agents dont know this though as we are playing calm.lol!

They said they have nobody else booked into see it yet, and it wont be advertised until after they have a valuation and HIP pack back. argh!lol!

Thanks for the advice guys,

GM good point about the fees, ill check that, We love it but know we probs wont end up with it we just want to try everything to up our chances. x

poppysarah

Price next week?
How do you know it's for sale then?

Make an offer. Don't wait. Put forward your reasons and the fact you can move fast.

Becky1983

I know its for sale as the estate agents told me and took us for a viewing. They are just waiting for all of the paper to work to come through.

They know roughly what it would be valued at, and im sure the surveyers must have spoken to them, but they are waiting for the reports to come back before they tell anybody the price or advertise it. They recon it will be thurs or Fri of this week, sorry.

Can you actually put an offer in if it hasnt got a price yet? Would this be a wise move as we could be way off the mark according the the valuation when it comes back. Or could you offer what you think its worth. I dont know if they would be accepted. x

princessamy86

EAs sound like they are flouting the HIP rules here. The repo company we deal with send through the marketing instructions, HIP and price all at the same time. It sounds a bit like the EAs are marketing before they have all the paperwork-which is bad!

The thing about taking proof of funds in is standard, the company we deal with will not even consider an offer until we have seen proof of funds.

To me it sounds like there is no way they should be marketing this property yet, but if that's what they are doing then I would put your offer in now-for what you think it's worth. However, don't be surprised when they don't get back to you as I wouldn't think they would want to admit to the repo company that they have been marketing without a price or a HIP. I find this a bit strange tbh, if the surveyors still haven't agreed a price then it's a good couple of weeks as a general rule before it can be marketed.

Even if you offer the full asking price (when it is decided), it's very unlikely they will take it off the market. Also, I would recommend you go in with a low first offer as many lenders reject the first offer you make in order to ensure you go higher.

Becky1983

The EA's have got back to me with a price. Which is great, my second viewing is booked for tomorrow, I asked if the property had anymore interest in it and they said yeah 6 other people are now booked into view it at the same time as me. argh! As its my second viewing I wanted to do some measurements etc... I will still do but didnt want an audience or want to let anyone know we were that interested.

I feel like there is going to be a bidding war already. What do we do as I really think we want to put in an offer! Do we go full asking there and then (take the EA to one side after our viewing). Or ring them the next day.

The house is slightly less than we expected so for us full asking price wouldnt be an issue. Is this wise as we dont want to mess about and we want to secure the house as ours.

Also is there benefits to being the first person to put in an offer. For example if someone puts an offer higher than ours do we get the chance to match it?

Please please help! :eek: