Buying a Repo... is this timescale normal?

sadsmileyface

A property became available in my area recently at a knock-down price. It's in a really poor condition cosmetically inside and that's contributed to a valuation that's about about half of what the houses on either side are worth. It's very clearly a repo.

Considering that, there's been a lot of interest in the property- so much so that it went to a closing date after being on the market for about three weeks. I put an offer in, over 3% above the valuation and asking price on the closing date.

There wasn't a decision by the end of the day, apparently due to the interest, they needed more time to decide which offer to accept. Then nothing. Then nothing. Then a week passed. Now it's eleven days later, and the EA states that the vendor (which my Solicitor assumes to be a Property Management company) still hast made a choice. Basically no further forward than I was on day one. Are timescales like this normal?

I'm in the position where I've really got to be in a new home by June, so I don't really want to keep sitting around wasting time on hope.

Anyone have any experience in this area?

G_M

Repos are notoriously difficult. Even if/when your offer is accepted they will continue marketing it, advertise your offer price in the paper, and invite higher offers.

The delay is unusual but could be down to the level of interes, or complexity in the decision-making - there may be a bank involved and/or Official Receiver and/or a managemnet company, with info flowing between before a decision is made.

Pricivius

I'm just about to complete on a repo purchase and I agree - they can be a pain.

As for the offers, it's not simply a case of the highest amount wins. The vendors have to consider the offer as a package so it may be more complicated than simply numbers - is anyone a cash buyer, are there any chains involved etc...?

I offered £5k higher than the nearest offer but it took the vendors almost two weeks to accept my offer, and I have no chain and mortgage all agreed.

Hang in there, because this is just the start of it! As G_M says, even if your offer is accepted, it is then put to Public Notice so the world knows what you have offered and people have at least 7 days to offer more and gazump you. The property cannot come off the market until you exchange contracts so you are at risk of gazumping until then. It's not for the fainthearted! Good luck!

Uk_Lover

I'm waiting on an offer too for a repo, made last week. Went to see the property again yesterday and EA said there is no time scale for them to answer, they can take as long as they want. Guessing they are waiting to see if any higher offeres come in. My offer was 15k below the asking price so understandable, but I'm a cash buyer so that will help.good luck

sadsmileyface

Thanks for the replies, I'll stick it out for a few days more.