do repo houses typically cost less than open market properties?

aussielovell

Have been to see a potential property which is an reposession advertised as offers over £75,000. Nothing in nearby area to compare with except nearby property in 2005 which sold for 95,000.

repo needs quite a bit of work although is mostly cosmetic i reckon £5k will do it. Honestly though, with all the fees etc, i dont really have £5k and will have to do it room by room over the next year or so i think. Need first of all to get new bathroom and strip all walls and carpets out. Then need to redecorate and do the garden area. (neighbours dog using my potential bit as its toilet)

Not sure how much to offer though.....past 2 ive missed out on have been houses (not villas like this one) and they went for £120k. My top is £115 but i am a bit loath to spend full budget on it while it needs work. Also, apparently they cant take offers as yet as it has to be advertised for at least 2 weeks. Been on their site for a week but not even going into the paper for the first time until Thur. Nearby is a 3 bed villa at fixed price of £120k in move in condition.

Help!!

Doozergirl

How do you know it's mostly cosmetic? Just a bit concerned by this as it seems pretty hard for a layperson to tell!

EDIT: you're in Scotland. I have no idea of the process, sorry!

cattie

In some areas where the housing market is very healthy, repo properties fetch market value or over.

I don't understand about not being able to take offers untill it's been advertised for 2 weeks. The normal course of events is for a repo house to be advertised in the same way as any house up for sale would be & once a suitable offer had been received, a notice put in a local paper inviting any higher offers during the following 7 or 14 day period. The lender is legally bound to try to get the best possible price for the house.

aussielovell

Doozergirl wrote:

How do you know it's mostly cosmetic? Just a bit concerned by this as it seems pretty hard for a layperson to tell!

EDIT: you're in Scotland. I have no idea of the process, sorry!

I know quite a bit about properties having done some refurbs in the past. on the viewing, i ripped up the carpet to check the floorboards, pulled some wallpaper off the wall where properties tend to get condensation. (I know, but needs must) Units in kitchen in good nick but really badly decorated and carpets are minging. New windows throughout (although no vents so one of the frames is a bit mouldy, the wood is sound. need treated.

Bathroom suite is ugly rather than bad. bath panel badly cracked & needs replaced and the shower isnt up to much.

One of the pieces of advice i have had is it doesnt really matter what i think its worth, rather that i should offer whatever i can afford to otherwise i will continue to keep losing out on potential properties. Doesnt seem really MSE thing to do tho.

Doozergirl

Fair 'nuff. Don't forget electrics, plumbing, roof etc!

aussielovell wrote:

One of the pieces of advice i have had is it doesnt really matter what i think its worth, rather that i should offer whatever i can afford to otherwise i will continue to keep losing out on potential properties. Doesnt seem really MSE thing to do tho.

That is the worst advice I have ever heard! Only ever offer what you think it is worth. You can lose a darn sight more by simply trying to offer more than everyone else!

aussielovell

yeah, i thought so! But, given the scottish offers over system....you just have no idea what the right price to offer is!! I hate the offers over system.

Last two, i thought i was about right what i offered and sol agreed but still lsot our by £5-£10k on each one so someone must know something i dont.

Not sure about the roof - looked sound but needs bit more investigation. as there was moss growth on it. Drains and gutters looked clear and sound.

Do you know what happens when this is the only one in the block of 4 privately owned and the other 3 are local authority if it comes to roof repair. I know that it will be jointly responsible but will they go straight to stat notice or will i have option to get done cheaper and get cash out of council?

Plumbing and electrics looked ok but even if not - i have two complete stars who can help me out here for dirt cheap. Asked vendor to let me know when the next available viewing is so i can drag them along LOL (Next viewings not available until next Monday!!!)

lauranurse

Just out of interest is probably a really stupid question but how do you go about finding repossed houses for sale.