Buying a repossessed house

mario75

jhe wrote: »

is it possible that the other party upped their original offer after you had shown an interest in it? we bought a repo recently and it was a rollercoaster ride from start to finish. even if your offer was accepted and you paid survey fees etc the other party or anyone else could jump in with a higher offer right up to point of exchange. although we completed on the house i would seriously think twice before getting involved with buying another repo.good luck

i dont think so,because EA even didnt ask do i want to give more.or in the other side it was better for them to dont ask and dont consider my offer again,
when you put your offer have you written any formal letter to agenvy with your price?could you tell me more about your situation with repo?it will help me to decide.have you been since start to finish first main buyer or someone try to bid you?

jhe

hi. we put offer in verbally and recieved confirmation in writing from ea. we felt constantly under pressure to up our offer as the ea kept telling us others were interested and one was a cash buyer. we did up the offer in the beginning when we were asked for final offers.{dont know why final offers are ever mentioned really apart from being pressured to increase as the repo stays on the market till exchange}when we refused to up our offer anymore and indicated we were considering withdrawing offer and asked for lists of other houses the ea explained to us our offer was accepted and it would have to be considerably higher offer from another party to persuade the vendors to accept another offer once we were shown to be making progress with the sale e.g survey done and accepted, solicitors involved. our mortgage broker advised us that he had been told any offer over £500 by another interested party would have to be forwarded to the vendor. but at the end of the day the vendor usually sticks with the party who are most likely to complete. hope this helps
i should have added our offer went to public notice in local paper. it was after this that we slightly increased our offer and the new offer did not go to public notice again.

hethmar

mario, the bank can choose who it feels is the best buyer in the situation. A few thousand pounds extra offered may not be as attractive as the buyer who has already sorted the money/mortage, had a surveyor in and instructed his solicitor. This is someone showing that they are genuinely going ahead and already spending money on buying the place. Anyone can come along offer thousands more but then not be able to proceed. They have to weigh up the best deal for themselves.

mario75

jhe
so the offer who has been in newspaper can be also increased by the first buyer when he found out about our offer?
would you advice me to fight and put another offer in writting to EA,tomorrow is 7th day after public notice, and if i understand correctly previous posts i have only 7 days to increase offer and be seriously considered.
honestly i dont loose anything to make an offer,which close our budget. if someone bid us that will be finish, otherwise we can day by day bid each other in price...

jhe

in our case the offers could be increased, thats why i dont understand the ea telling us to make a final bid.although the public notice says 7 days anyone can make a higher offer right up to the point of exchange. if you make an offer that is accepted the other interested party can also up their offer but the ea wont tell either buyer what the highest offer is.as hethmar says the vendor will go with the buyer who is most likely to complete.you could always put in a higher offer and see if it is accepted. but the other buyer might increase their offer,you could find yourself in a bidding war and once solicitors are involved you risk losing money. it worked out for us in the end but the reason i would think twice about buying another repo is because of all the stress and uncertainty of it all. it took us around 6 weeks to complete and it was 6 weeks of ups and downs.

mario75

i thing that i will try and i will put another offer,then i will see what the agency says- i am affride that they decline my offer stright away without putting to the morgage company saying that they choose another person and its finish for all...ea are not really friendly..
hopefully when they accept my offer futher on bank doesnt accept any other buyers who givin £1000 more.. we will see.i really like this house and that is why i cannot forget about !!!!!oh i suppose that i am already involve in the little war!!!!

jhe

it wont harm to try mario.the ea should be acting on behalf of the vendor and put forward any offers made on the property following the vendors terms on selling the property through the ea.maybe the 1st buyer is well into the process of buying the property. but if the 7 day notice hasnt even expired yet they should certainly be taking your offer serious. if your offer is accepted maybe the only way you would lose the property is if a cash buyer is around or someone in a strong position to complete offers a much higher figure.have you a definite mortgage offer in place or are you a cash buyer all these things will influence the vendors decision on your offer.

mario75

i am the first time buyers and need to take morgage i have also 15% deposid so my position isnt very bad.i had puy an offer £1000 more.sent ea email...

Milliewilly

That could be your problem then - no mortgage arranged yet and only 15% deposit when most mortgages now are looking at 20%.

johnson293

I bought a repo with 15% deposit mortgage, but I did have a mortgage agreement in principal before making an offer - the EA asked about this, but didn't ask for any proof, and they still forwarded my offer(s) onto the bank/vendor.

mario75 - have you got a mortgage agreement in principal, or are you trying to make offers based upon what you think you a lender will give you/you can afford?