Buying a repossessed house

phoebe1989seb

My experience of repos is somewhat different -

We viewed a house at the beginning of April that wasn't advertised as a repo - but obviously was It was on for £235,000. We decided it wasn't in a very nice area and walked away. Within a week it was sstc and advertised that anyone wishing to make a higher offer than the £256,000 (!!!) agreed price should do so in writing before exchange of contracts. We were slightly gobsmacked that the agreed price was so much more than the asking/guide price, but were even more astounded when a couple of weeks later it showed up on RM with two further agents and two further supposedly accepted offers of £295,000 and £297,000 :eek:

However, the last of these was advertised on RM over two months ago and is still being shown on there now, so it would appear that contracts haven't yet been exchanged............

geoffky

Lots and lots of ghost bids seem to happen on repos...make sure you have your wits about you or that extra 20k you have to offer is in reality 60k over the length of the mortgage.BIDDING wars are for fools.

designergraphics

My daughter and her fiancee are currently in the process of buying a repossession. They viewed the house the day after it was advertised and put made an offer of £6000 below the asking price. The EA came back and said the Bank weren't keen on accepting offers that low at that time so they offered £50 over the asking price (it's still a bargain, even in today's climate) and the offer was accepted. That was two weeks ago and so far everything's going smoothly. They've had a mortgage approval, the valuation's been done next Tuesday (can't hurry it up) and all legal searches have been completed.

They've been told by the EA that there's a lot of interest in the house (it's detached, in a popular location, close to a good school etc) but most interested purchasers have a property to sell. Their offer was published in the local press (higher offers to made in writing before exchange of contracts) and is listed with two EAs.

It's been encouraging to hear of the success stories on here but very nerve wracking hearing some of the horror stories. They've offered the maximum they can afford (they'd intended going for a cheaper house initially and will probably do so if this one falls through) so they don't intend increasing their offer by much if they're outbid. The problem is balancing the fact that it's a lifetime home with a lot of potential against what sacrifices they're prepared to make to get it.

Anyway, I found this thread most helpful in learning what to expect during the buying process and wanted to say thanks to those who've posted. I'll hopefully be able to report on a smooth and successful transaction very soon - or maybe not!

designergraphics

My daughter phoned me this morning with the news that a higher offer's been received and that they have up until the end of today to increase their offer. The seller won't say what the higher offer is so I've asked the EA if the offer will be published in the press and if my daughter will be able to increase her offer any time before exchange of contracts, as was the case with her offer. I was told that if she didn't increase her offer today her file would be closed. However, the EA is phoning the seller to see if they'll disclose the higher offer. The valuer is doing his valuation tomorrow so we'll let that go ahead but I told the EA that my advice to my daughter would be to call it a day if the seller won't disclose the amount of the new offer and look for another property. I know it's the law that offers can be accepted up until exchange of contracts but it seems totally unfair that the first accepted offer is published in the press so everyone can see what amount they have to beat but all subsequent are kept secret. I've heard so many stories about higher bids being placed then withdrawn I'm a bit cautious about encouraging them to make a higher offer but am also afraid they might lose the house if they take my advice.
Looks like it's not going to be as straight forward as I thought!

GDB2222

Well, the higher offer is unlikely to be totally fictitious. However, whether it is a 'proceedable' offer is anyone's guess. Some people even offer a lot in order to blow the opposition out of the water, then reduce it again later just prior to exchange. I agree that you can't just bid against an unknown amount.

BTW, I've always said that one way to sell a house is to advertise it very cheaply and then watch people bid against each other. Seems it works rather well, I am afraid.

_s79

When I bought a repo I had someone offer more - would I like to increase my offer and make a "best and final offer". I just said that my current offer was still on the table, I wouldn't be increasing it and good luck to them. I carried on as normal and they phoned me shortly after to say that the other bidder was in a chain and my offer would be the one they would like to pursue.

designergraphics

Thanks for the responses. I've had a call from the EA who told me that although she knows what the higher offer is the seller isn't willing for her to disclose it. She also said the other offer will be published but she doesn't know if any further offers will be accepted from my daughter if she waits until then. I'm going to have a chat with my daughter and her fiancee this evening and advise them to wait until the valuer's done his work tomorrow then get in touch in touch with their mortgage adviser to see when they'd be able to complete (all the legal work is ready), then go back to the EA with an offer of an extra £1000 and the ability to exchange within seven days. Hopefully the offer of an early completion might sway things in their favour.

GDB2222

"She also said the other offer will be published but she doen't know if any further offers will be accpeted from my daughter if she waits until then."

I think that that must be nonsense. What possible reason could they give to their borrower for not accepting an increased offer from your daughter after they have re-advertised?

Regina.filangie

This is so interesting. We are in the process of buying a repo house - advertised for 84950. When we went to view it they said there had been no other interest. A week later they accepted our offer of 82k and last Thursday we got underway with mortgage application and instructed our solicitor and paid for the valuation, and were also told that 2 other people had been to see it. Today I got a call from the agent to say they've received a higher offer. I asked how much for and she said she couldn't tell me. I asked if the new offer would be subject to the 7 day notice period that ours was and she said no, not necessarily. They may just accept the higher offer and proceed with that. I asked for a ball park figure and she said we would need to offer above the asking price. We don't think it's worth that. We are prepared for our offer of 82k to stand as I've heard of these other 'offers' being retracted when you say you won't increase your offer. What should we do about the solicitors? Should I ring them and tell them to hang fire as there has apparently been a higher offer than ours and we don't want to increase it? Also, if the valuation hasn't already been done can I cancel it to get my £265 back?? I feel sick to my stomach.

Also - should I ask for the notice of the higher offer in writing? As a way of putting them off making 'ghost offers' so we'll increase ours?

The other thing I noticed is that the notice on Rightmove said 'higher offers should be made in writing to the agent within 7 days of this advertisement'. The 7 days ended last Friday, but we've only been told about a higher offer today. I smell a rat.

GDB2222

I suggest that you ring the EA and say that you're just about to cancel the valuation and the solicitor as you won't raise your offer. See what happens. If no joy, then do of course cancel them.