Repo property - how much to offer?

emza10

We are first time buyers and interested in a repo property we have seen in an ex local block. It's been on the market since April and the EA says only 4 people have viewed and noone seemed interested. He says the bank will accept a "very good" offer - it's currently on for £190k - tho when we saw him today he said the bank were so desperate to get rid they were thinking of dropping to £180k (may or may not be true?!)

So, the question is how much should we offer? Is it true that with repossessions, the bank have a lowest threshold they will accept and once it's hit they will accept that offer no matter what ( ie if we bid 160k but their threshold is 163k and someone else came along and offered that after us, we wouldn't then be able to up our offer?)

We really like it and don't want to lose it but don't want anyone to know that of course!

Thanks

G_M

Once the bank accepts your offer (whatever it is) they will advertise your offer in the paper and invite higher ones. If they get a better offer they have a legal duty to accept it (to protect the repossessed owner) unles there are other factors (eg you are 2 days away from Exchange, the new offer requires mortgage confirmation, and the price difference is not significant).

What to offer?
Decide what you can afford; Decide what the property is worth. Then offer that.

But if it's been on the market with no interest, clearly it is not worth........

BitterAndTwisted

The bank's threshold will be whatever is outstanding on the mortgage. If you offer below that threshold your offer will be rejected. However, if you give any indication that you could afford to pay more the agent will probably reject it in any case. It sounds like there hasn't been a stampede to snap this one up so I really wouldn't worry that much about being outbid as soon as you put in an offer. Any sensible agent would come back to you and give you the opportunity to modify your offer and some will pretend there's someone else interested just to prompt you to show your hand. it's all a game of poker really so don't be the first one to blink.

emza10

Thanks guys, one more thing- is it worth offering less than what we think first to enter into some bartering or will the banks not play this?

King_Of_Bling

emza10 wrote: »

Thanks guys, one more thing- is it worth offering less than what we think first to enter into some bartering or will the banks not play this?

If no offers have been made, make an offer you are comfortable with. BUT, beware the agent is likely to publicise your offer on their web site or local newspaper, and invite others to increase it. If no other buyers step forward, your offer is likely to be accepted.

kingstreet

emza10 wrote: »

in an ex local block

How many floors in the block and what floor is the flat on? Is it still mostly LA rented or privately owned?

emza10

It's 3 floors (3? As in ground, 1, 2, 3 not sure if that counts as 3 or 4?) and is mostly privately owned I THINK - is there anyway to find out for sure? I've looked on Zoopla etc and there's quite a few which have been sold on there. I don't think there'll be a problem getting a morgage, we've done our homework.