We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Gazumped on a Repossession
Deke_2
Posts: 6 Forumite
Hi
We recently put an offer on a Repossessed House, which was accepted. We are fisrt time buyers and have a good sized deposit and have taken out a mortgage.
We are now at the stage where the mortgage had been finalised and the valuation by the lender done. It was posted to our solicitor today. However, the Estate agent has advised that an offer has just been made for £1000 more than our offer. The new offer has been made through a different EA to us as the vendor used multiple EA's.
So the contracts should be exchanged next week some time and now this has happened. Any advice on what to expect over the next few days, should we be worried?
Any help please.
We recently put an offer on a Repossessed House, which was accepted. We are fisrt time buyers and have a good sized deposit and have taken out a mortgage.
We are now at the stage where the mortgage had been finalised and the valuation by the lender done. It was posted to our solicitor today. However, the Estate agent has advised that an offer has just been made for £1000 more than our offer. The new offer has been made through a different EA to us as the vendor used multiple EA's.
So the contracts should be exchanged next week some time and now this has happened. Any advice on what to expect over the next few days, should we be worried?
Any help please.
0
Comments
-
from what ive been told, someone can come in and offer more up until the time you sign, and unless you can beat that offer then they will have the house. A pain in the back side i know but the bank only cares about how much money it has back0
-
You should be worried, yes. With a repossession, the seller has a duty to get the highest price possible under all the circumstances, and it's usual for the place to be marketed until exchange....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
-
from what ive been told, someone can come in and offer more up until the time you sign, and unless you can beat that offer then they will have the house. A pain in the back side i know but the bank only cares about how much money it has back
Not necessarily. If the offer is only £1000 higher, the sellers might decide that it is in the best interests of everybody to continue with your safe sale rather than take a gamble on a buyer who may not get a mortgage or might not be as serious.
They have to get the 'best price' but they're allowed to make a judgement on how. Just keep emphasising that you are ready to exchange very soon.
A bird in the hand etc...0 -
With our case we bought a repo and because we had sold and exchanged and was going to go into parents house this made more sense to the bank than to wait for another person to exchange. These people offered £5000 more because it was advertised in our local paper and the world and his wife went to look at the house. But has luck would have it they hadn't exchanged although they had sold the house verbally.0
-
The only advice is to Exchange contracts as quickly as possible. Until you do you have no guarantee.
And if the bank/vendor telss you they are accepting the higher offer, you need to make a snap decision whether to match it or walk away. If you are prepared to match it, get your solicitor to contact the vendors saying a) you will match the offer and pay £xK and b) you will Exchange contracts on Tueasday (or whatever). Speed matters.0 -
do not offer more yet...just try and tell them you are set and ready to exchange as soon as possible....good luck...they do not always go with the highest bidder...It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
Bad karma to offer below the asking price of a repo. Just think of how you are feasting on some distressed vendor's misery. I would never low ball on a repo, as to me it is really just profiting at some one else's misery. Glad to hear that some one else has outbid you0
-
Some reassuring messages guys thanks for the advice. And nollag2006, we offered the asking price. I dont think the bank that repossessed it are feeling any misery over a small terraced house.0
-
I am sure the bank don't feel any emotion towards you either. However, they do have an obligation to get the best price possible for the distressed vendor, and in this instance they are doing just that. I feel not a jot of sympathy for you. If you feel the property is worth more than your original bid, then you know what to do.
Otherwise, move on and try to find another bankrupt family whose misery you can gloat over...0 -
nollag2006 wrote: »Bad karma to offer below the asking price of a repo. Just think of how you are feasting on some distressed vendor's misery. I would never low ball on a repo, as to me it is really just profiting at some one else's misery. Glad to hear that some one else has outbid you
Overly harsh I think.
The OP didn't cause prices to crash, neither did they evict the previous owners.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.8K Banking & Borrowing
- 253.8K Reduce Debt & Boost Income
- 454.7K Spending & Discounts
- 245.9K Work, Benefits & Business
- 602K Mortgages, Homes & Bills
- 177.8K Life & Family
- 259.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards