Would you buy a repossessed property?

silvercar

You need to find what the property is worth now, rather than what it sold for in 2004. New estates often fall in value once the houses enter the second hand market. Try nethouseprices to find what they've sold for recently.

Don't feel bad about a repossession, it could have been bought as a BTL that never found a tenant.

scorpio_princess

I think in the case of repos, mortgage lenders will want to get as higher price as they can, because it's pretty much the only way they'll see any of their money. Having said that, houses that hang around for too long are also costing them ££££, so would probably be more receptive to lower offers. If they sell for too low, they'll still need to pursue the repossessed people for the rest of the cash - not exactly guaranteed when the chances are they don't have a pot to pee in. But if they 'over egg the pudding', so to speak, they can also get stung.

Bottom line? Go in low-ish, like Doozer said. I wouldn't listen to UKBondraider - I reckon he's overdosed on Property !!!!!!

sara2323

Sorry hope the Op does'nt mind but how would you know if a property was Reposessed??

I've never seen any properties advertised as such

Milky_Mocha

If you express interest in an advertised property the EA is obliged to inform you that it is repossessed. It doesn't actually state so in the ad as far as I know.

Doozergirl

They aren't generally, sara2323, the estate agent will tell you either when you view or if you show interest in the property.

You will however, sometimes see notices in the paper informing the general public of offers received on repossessed properties. It's always worth checking what similar properties have sold for as you might spot a bit of a deal that way. You have to be prepared for a fight if you find them that way though!

bobsa1

Usually on a repo the building society asks for a quick completion, particularly if you are getting a good deal, time is money etc. We had one six months ago where they asked for a 21 day completion, we agreed to 28 days, but if we hadn't completed then, the deal was off.

Best of luck

ukbondraider

silvercar wrote:

You need to find what the property is worth now, rather than what it sold for in 2004. New estates often fall in value once the houses enter the second hand market. Try nethouseprices to find what they've sold for recently.

I wish this was true but its total rubbish. I think this board is getting filled with more and more BS everyday.

ukbondraider

desperadoV2 wrote:

Fair comments ukbondraider. But I dont think, this property is worth 217K. I think it is overpaid by the previous owners. It is a new build in good condition but the bedrooms are not big. Its okish size and is good enough for FTB like me. Also the EA told me, the property has been on the market for a while now. Eitherway I don't think there is any harm in putting in an offer of 170K. I was worried about being embrassed or not taken seriously but the worse that could happen is, they could say no. So I'm going to go for it and see what happens.

Sorry you are confusing me. Are the previous owners the first owners i.e they bought it from developers (which I assumed from your post)? If so then it will be the benchmark price. If the last owners were not the first owners but bought of someone else then yes it may be overpriced at £217K.

Doozergirl

ukbondraider wrote:

I wish this was true but its total rubbish. I think this board is getting filled with more and more BS everyday.

It's absolutely true. Someone has only today posted up an entire list of new build properties that have dropped in value and I know can find many examples in my part of the world. If there is enough new build springing up, the second hand stuff depreciates until the competition disapears.

In fact, there are developments in Birmingham city centre that aren't even marketing subsequent phases at as much as the earlier ones. Now that's really rubbing people's noses in it.

ukbondraider

You should go in low. I am just saying dont be surprised if it ends up as easy as the replies you have recieved from this post imply.

Good luck