Offer on repossessed house

2Xtreme_lives

We have put an offer on our first house with is marketed for £114,000 in order to get the 95% mortgage we needed to get a mortgage of £120,000 in order to qualify, as a result putting an offer on the house for £120,000 (house is actually worth £130,000 but is cheaper as a result of repossession) however the estate agent have just left me a message saying the debt company wants to know if we can go higher, is this a tactic to claim more money back?

twirlypinky

I don't understand why, if it's marketed at 114, you would put in an offer of 120.

I'm selling a house for £89k, you can have it for £102

cramg

Our house was a reposession when we bought it 5 years ago. We had exactly the same phone call asking if we could pay any higher than our initial offer, we said no and the offer was accepted. If they are asking you for a higher offer, ask the agent if another party is bidding on the house as well.

Also, be aware that when your offer is accepted, other people can still make higher offers - and because it is a reposession your offer will be displayed in the local paper inviting people to bid higher.

This happened with us and someone did bid higher by £10K! We lost the house at that point and it was very tough. But then at the last minute the buyer pulled out so the agent came back to us asking if we were still interested, at that point we got it in writing that the house would be ours for the agreed price.

Buying reposessions can be hard if you do not have cash in place, my advise would be to not get emotionally attached to the house at this stage as anything can happen.

2Xtreme_lives

We put an higher offer in as we wanted to put an offer at £112,000 initially however we only had 5% deposit and in order to get a 95% mortgage we needed to meet a minimum of £120,000 in order for them to lend to us,(but in the long term if this falls through we were always willing to get a £120,000 mortgage in place) We have now been told the house has now come with all utilities such as fridge, washing machine oven etc so we are happy to pay more, also once we have finished the unfinished decorating a house identical 2 doors down is on the market for £136,000.

We have been told by a friend who put an offer in for a repossession and told us someone can put an higher offer in as they need it on the market for a month before accepting final offers so we have left it until the last fortnight to put an offer in, luckily so far no more interest but we are doing our best to not get too attached yet

Furthering your advice i have told estate agent no that's our maximum

Running_Horse

2Xtreme_lives wrote: »

(house is actually worth £130,000 but is cheaper as a result of repossession)

If the house was worth £130,000 somebody would pay that much. The house will actually be worth whatever someone pays for it.

2Xtreme_lives

Indeed, which is another reason why were happy to pay £120,000 as a 2 bedroom house in this area is still a very good price compared to what else we have seen for that price i.e 1 bedroom maisonettes

So if the agent keeps pushing us to go in higher we should just wait until the deadline for offers

chris_m

2Xtreme_lives wrote: »

We have put an offer on our first house with is marketed for £114,000 in order to get the 95% mortgage we needed to get a mortgage of £120,000 in order to qualify, as a result putting an offer on the house for £120,000 (house is actually worth £130,000 but is cheaper as a result of repossession)

But will your lender value it at £130K, £120K, £114K or something else?
If the lender values it at less than £120K, surely there's your 95% mortgage gone for a burton?

Lokolo

Just because the house is on the market down the road for £136k, doesn't mean it's worth that much!

I have a repo in my favourites which is on the market for £155k. Next door neighbours are selling theirs for £235k. It's definitely not worth £235k, and the repo isn't worth £155k (needs a little modernisation).

madhouseof4

chris_m wrote: »

But will your lender value it at £130K, £120K, £114K or something else?
If the lender values it at less than £120K, surely there's your 95% mortgage gone for a burton?

+1

We are supposed to be exchanging/completing on a repo today (will now settle for exchange). It was on at £215, we offered £205. For mortgage purposes it was valued at what we offered for it.

phoebe1989seb

We viewed a large six bed Victorian repo that needed complete renovation but realised it was in the wrong area for us so didn't make an offer. It has since sold for £60k more than the asking price :eek: Similar houses that are in far better condition in the same area have sold for similar amounts which seems strange.........

chris_m

madhouseof4 wrote: »

+1

We are supposed to be exchanging/completing on a repo today (will now settle for exchange). It was on at £215, we offered £205. For mortgage purposes it was valued at what we offered for it.

Yeah, but you offered less than the asking price, not more.