Buying process for a repossession - so confused!

sonicskies

Hi,

Long time lurker first time poster here. I'm at the point of making an offer on a repossession but not sure of the exact order in which to do everything.

I've viewed the property three times, including with a builder who's given a rough quote for the work that needs doing (quite a lot). I've also got quotes from two solicitors, both have been used by friends before and quotes for a suryeyor.

The estate agents require proof of funds and solicitors details before an offer is submitted. That means I have to choose my solicitor now - what do I say to the solicitors to let them know they're my choice but not to do any work yet as I know there's a chance my offer can be beaten? (I know all about the 7 days in local paper etc that goes with buying a repo)

At what point do I instruct a survey? Do I need to wait and see if my offer is being taken seriously or arrange it as soon as the offer goes in?

As it's a cash purchase there's a 14 day time limit between exchange and completion should I get that far - does that mean I have to get the solicitor started on searches etc before exchange to make sure it's done in time?

Thanks for any help - as a first time buyer I'm learning as I go along but having trouble finding answers to specific questions! I know I'm going to have to pay some money out but trying to limit it as much as possible due to the risk of someone else beating my offer!

joerugby

Someone else can beat you offer at any time up to exchange.

And you can't exchange until your solicitor has done a big chunk of work. You also probably do not want to exchange without first seeing your surveyor's report.

So you do run the risk of paying for these services and then losing out at the last minute. You need to weigh this up and decide of you are prepared to take the risk,

Nuttyneddy

Searches are always done before exchange, so no worries there.

Sounds like you're in a good position to get to exchange quickly (no related sale and no mortgage to wait for) so that should limit your risk of someone else coming in with a higher offer.

Good luck!

G_M

sonicskies wrote: »

Hi,

I've viewed the property three times, including with a builder who's given a rough quote for the work that needs doing (quite a lot).How confidant are you this 'rough quote' won't escallate? I've also got quotes from two solicitors, both have been used by friends before and quotes for a suryeyor.

The estate agents require proof of funds and solicitors details before an offer is submitted. That means I have to choose my solicitor now - what do I say to the solicitors to let them know they're my choice but not to do any work yet as I know there's a chance my offer can be beaten? (I know all about the 7 days in local paper etc that goes with buying a repo) Tell them you are happy with their quote (see below) and you will be in touch with instructions when your offer is accepted

At what point do I instruct a survey? Do I need to wait and see if my offer is being taken seriously or arrange it as soon as the offer goes in? Only once the offer is accepted

As it's a cash purchase there's a 14 day time limit between exchange and completion should I get that far - does that mean I have to get the solicitor started on searches etc before exchange to make sure it's done in time?You solictor will not let you Exchange till all searches are complete. You would not want to commit to buying till you knew the legals were in order, the survey showed no hidden horrors and the money was available, would you?

Thanks for any help - as a first time buyer I'm learning as I go along but having trouble finding answers to specific questions! I know I'm going to have to pay some money out but trying to limit it as much as possible due to the risk of someone else beating my offer!

Repos are not the best way to start as a FTB. Very stressful and risk of forking out on surveys etc and then getting guzumped. Once your offer is accepted the seller will probobly place an ad in the paper saying they've accepted an offer of £X000 and anyone interested in offering more can do so. Meanwhile you are getting your solicitor and surveyor to do stuff which needs paying for.

Make sure your solicitors quote are inclusive. Some have hidden extras you only discover at the end when the bill arrives. Read this.

If you can get the solicitor to work on 'no sale no fee' so much the better because of the risk of gazumping.

sonicskies

Thanks for all the replies.

How confidant are you this 'rough quote' won't escallate?

Reasonably confident - builder is friend of my parents and a lot of the work that needs doing is easy to spot due to the state of the house. Estate agents also had a damp/timber survey done this week so I have a copy of that. I know nothing's guaranteed but as long as the survey doesn't show up anything unusual I'm pretty confident.

G_M wrote: »

Repos are not the best way to start as a FTB. Very stressful and risk of forking out on surveys etc and then getting guzumped. Once your offer is accepted the seller will probobly place an ad in the paper saying they've accepted an offer of £X000 and anyone interested in offering more can do so. Meanwhile you are getting your solicitor and surveyor to do stuff which needs paying for.

Make sure your solicitors quote are inclusive. Some have hidden extras you only discover at the end when the bill arrives.

If you can get the solicitor to work on 'no sale no fee' so much the better because of the risk of gazumping.

Yep solicitors quote is inclusive, have checked that. I know it's a risk but the house when finished would be somewhere I'd live for many years so happy to raise offer to a pre-set limit if needed. It's in a rough area and houses round here aren't shifting at all which makes me slightly hopeful that it looks less of an attractive buy for others!

So if I make an offer tomorrow (subject to survey of course), then when the house is listed in the local paper (assuming the offer isn't rejected outright for being too low) have a survey done and ask the solicitors to begin work?

Thanks again.

G_M

So if I make an offer tomorrow (subject to survey of course), then when the house is listed in the local paper (assuming the offer isn't rejected outright for being too low) have a survey done and ask the solicitors to begin work?

Once your offer is accepted, get all your professionals working flat out. You want to be able to Exchange (and thus pin the deal down) as soon as the vendors will let you. Make sure your cash is accessible at short notice.

sonastin

Don't be too concerned about the deadline. Make sure that everyone is working as fast as possible and make sure the vendors know that you are doing everything quickly. As long as they know you're not a time-waster, they won't be concerned if things aren't done in 14 days. And it is in your interest to move as quickly as possible - if you are one day from being ready to exchange when a higher offer comes in, it will have to be significantly higher to tempt the vendors into risking ditching you for a buyer who might fall through.

MegaMiniMouse

I'm not sure where the 14-day figure came from, and if it's a cash purchase, there is no requirement for a survey. If you feel the need for a surveyor's expensive opinion, then maybe you are not ready to play in this market place...

hcb42

sonicskies wrote: »

It's in a rough area and houses round here aren't shifting at all which makes me slightly hopeful that it looks less of an attractive buy for others!


.

Location, Location, Location... Don't do it!

sonastin

MegaMiniMouse wrote: »

I'm not sure where the 14-day figure came from, and if it's a cash purchase, there is no requirement for a survey. If you feel the need for a surveyor's expensive opinion, then maybe you are not ready to play in this market place...

Just because you're not a qualified surveyor and you don't know what they look for, it doesn't mean you should own the roof over your head! That's a bit like saying if you can't change an engine, its not worth buying a car.

MegaMiniMouse

sonastin wrote: »

Just because you're not a qualified surveyor and you don't know what they look for, it doesn't mean you should own the roof over your head! That's a bit like saying if you can't change an engine, its not worth buying a car.

What? I meant to say that if you expect to buy a place for a fraction of it's 'value', (whatever that might mean these days...), then don't start getting picky about whether or not the property is in 'saleable condition'!

Make an offer for a pile of bricks, and if it turns out to be a habitable dwelling, then that is a bonus...

MMM