Offer accepted on a repossessed property now EA says there are higher offers!

ik1

anewman wrote: »

But how often do they try it on and you see it still advertised next month because you were in fact the only person offering a worthwhile amount of money for it? There's too much greed in the property market and being an estate agent is nearly as morally bankrupt a profession as being a banker. A property is only worth what someone wants to pay for it. Artificial pointless pitting people against imaginary buyers and people stretching themselves too far is what causes the repossessions in the first place. If people weren't bullied into making silly high offers then the housing market would be more accessible to first time buyers.

The solution is Gazundering!

I actually agree with this logic as I have seen estate agents hyping property up like there is no tomorrow and unfortunately around where I live the poor sods fall for it because they are trying to escape poor neighbourhoods so are willing to pay over the odds because they think they wont be able to buyt it unless they offer asking or over. And then there are rumours of EA's doing deals under the tables etc etc. In this day and age with laws for just about anything and everything I am surprised EA's are getting away with these sort of tactics!

Running_Horse

anewman wrote: »

But how often do they try it on and you see it still advertised next month because you were in fact the only person offering a worthwhile amount of money for it?

{snip}

The solution is Gazundering!

I don't know. How often? Please give examples.

The solution to paying less for a repossession is not gazundering, as they will drop you like a ton of bricks and sell it for less to a cash buyer who doesn't mess them around. And you will have lost a lot of time, and possibly money.

The solution is to offer what you think it's worth, then walk away if you don't get it.

Milliewilly

Running_Horse wrote: »

I don't know. How often? Please give examples.

The solution to paying less for a repossession is not gazundering, as they will drop you like a ton of bricks and sell it for less to a cash buyer who doesn't mess them around. And you will have lost a lot of time, and possibly money.

The solution is to offer what you think it's worth, then walk away if you don't get it.

Unless its the repo company 'movewithus' then its all about PRICE not position of the buyer...... I notice their house is still unsold that represented to quote movewithus: 'exceptional value for money' from their ivory tower in Cambridge.

hethmar

Its highly unlikely the EA would be inventing the new buyers. He wants to sell the property to get his commission and it would be pointless jeopardising a sale if there are really no other offers.

The fact is when you make an offer on a repo the estate agent has to make your offer public and invite further offers. He has done this and it has attracted two higher offers. Likely not much higher than yours - and the vendor company will not just choose the highest but the best offer - the person who has already shown some commitment and is clearly able to proceed quickly and without delay. Its really up to you if you want to increase your offer - you have to decide if the house is worth more to you. If not, then walk away.

Ankatden

Have had this happen and had done valuation and solicitor with money ready to exchange, was outbid so EA went for finals and was outbid again but EA said legally I can do exactly what they did, So I rebid above them and made it quote plain I would continue to outbid them, there was no further bids but my solicitor did ask for proof of other bids and received it from EA.

dukesy_2

Milliewilly wrote: »

Unless its the repo company 'movewithus' then its all about PRICE not position of the buyer

Hmm..this wasnt our experience..

we offered on a repo at 40K below asking price (needed a bit of love !)

It was made very clear to us that they would continue to market the property right up til the day of exchange. The EA's had offers in excess of ours (10k higher), but didnt try to get us to increase, merely to confimr that we were still on schedule, mortgage progressing, valuation done, quotes for improvement in etc etc

Completed around 6 weeks later (delays caused by US), with no hassle, and had builders in since !

We actually move in tomorrow !!!!!!!

Just my 2p worth

Milliewilly

dukesy wrote: »

Hmm..this wasnt our experience..

we offered on a repo at 40K below asking price (needed a bit of love !)

It was made very clear to us that they would continue to market the property right up til the day of exchange. The EA's had offers in excess of ours (10k higher), but didnt try to get us to increase, merely to confimr that we were still on schedule, mortgage progressing, valuation done, quotes for improvement in etc etc

Completed around 6 weeks later (delays caused by US), with no hassle, and had builders in since !

We actually move in tomorrow !!!!!!!

Just my 2p worth

Was that specifically with 'movewithus' or just your experience in buying?

I was forwarded on an email from movewithus by the Estate Agent stating it was all about price not position.

I find it hard to believe that there were actually other offers on at £10K more to be honest especially if you were already £40K below advertised price and by your own admission caused a 6 week delay.

It sounds to me like they were phantom bidders - remember you have to agree in the contract to valuation inspections for 6 months after completion to ensure the best price was reached as its the reposessee who makes up the shortfall and can sue the lender for the difference.

DFW2

I am also confused re this. The house we are trying to buy is not a repo as far as we are aware however, our first offer was accepted and we have a mtge app going through and the valuation has been done. However a letter from their estate agents today had a phrase in bold indicating that if they received any offers from prior marketing they had to put them forward.....I don't get it, they accepted our offer, surely if they wanted the asking price they should have declined our offer???

Milliewilly

DFW2 wrote: »

I am also confused re this. The house we are trying to buy is not a repo as far as we are aware however, our first offer was accepted and we have a mtge app going through and the valuation has been done. However a letter from their estate agents today had a phrase in bold indicating that if they received any offers from prior marketing they had to put them forward.....I don't get it, they accepted our offer, surely if they wanted the asking price they should have declined our offer???

No - they have to try to get the best price including advertising the accepted price for 7 days in 3 different places - local press, rightmove and EA's window.

I have been trying to complete today on a repo and Northern Rock won't as the ad only went in the press last Friday (has been displayed on rightmove since a week last Tuesday though) so it will take me 14 days from acceptance to completion at this rate. My solicitor is champing at the bit - and so am I he got my money today!

axomoxia

The estate agent must pass all offers onto the vendor - it is up to the vendor to say if they wish to reject the new offer or reject yours....