How much to offer??!!??

Smiley

Hi all,

First post!

I have seen a property I would like to buy. Its a 1 bed ground floor flat, its on at £110000. I know its a repossession, so does that mean it will go for asking price or can there be some negotiation? It does need some work done, (kitchen/bathroom) and generally cosmetic work. As I'm new to all this I don't know where to start is 10% below asking price to low??

Any help would be greatly appreciated.

Smiley!!

pickledtink

Depends. if similar properties in decent condition are 120,000 say then the state of repair has already been factored in.
Generally you take the going rate of a similar property in decent nick and deduct the cost of whatever needs doing plus a couple of thousand less for inconvenience and hassle. However it also depends on the competition and if there are other buyers interested etc

missk_ensington

A repossession that needs some renovation, I don't think 10% below is enough! Don't forget you can always increase it if its rejected. If you're a First Time Buyer you're also in a favourable position as there's no hold up. I'd offer £95,000 (ensuring you outline your reasons, that a kitchen is going to cost you £7,000 and a bathroom £3,000 plus others maybe carpets, decorating etc)

OR- you can offer a little more and then find out who is doing the Valuation report. Tell them to find fault with the property (may cost you a back hander) and use this as leverage to reduce the price.

When I worked for my Mums property company we always told Valuer/Surveyor to find fault, say the roof needs work, the boiler.... anything so that you can say 'well the roof needs doing which I didn;t know about when I made my offer, and I'm no longer prepared to pay this knowing I have to shell out another few grand....'

Chances are they'd rather give it you for less than start all over again putting it on the market.

Debt_Free_Chick

missk_ensington wrote:

A repossession that needs some renovation, I don't think 10% below is enough!

Depends on whether the asking price reflects the valuation. The asking price may well already be 10% or more below the valuation and may well reflect the cost of the work that needs to be done.

If so, then don't expect much of a discount on the existing discount.

In addition, it really depends on who else is interested and whether they are prepared to pay more than you.

You can only get your own valuation and then decide who much you are prepared to pay.

missk_ensington

DFC is right, if a few people see potential in it there is less room for leverage.

You could try https://www.houseprices.co.uk and see if any others have sold recent;y and how much for.

Sparky29

Go in with a cheeky £95 K offer. Whats the worst they can do? Start haggling which they will probably do anyway. Easier for you to start low and move up a few grand than give a reasonable offer then start haggling. If there are no other interested parties and you are in a good buying position ie firsts time buyer, not stuck in a chain etc, you never know, you may get lucky.

su3

I think you will find that with a repossession you will need to complete within 28 days, so you will be up against cash buyers. However it is sensible to go in quite low as by law the property must be advertised in the paper saying that a bid of £xoooo has been offered. This then gives you or any one else an opportunity to bid higher. Hope this helps.