FTB Cash Buyer Advice

Coatsy

Hi guys I need some advice,

I'm interested in purchasing a property, the property is a repossession. I've viewed the property twice now and I want to buy the property, I'm just waiting for a surveyor to view the property and give me his opinion.

I'm a FTB, cash buyer and have no chain

I've spoken to the Estate Agent and he has told me that there is an offer for the property slightly above the asking price and they have a mortgage.

If I decided to place a bid subject to survey what price should I offer?

I suppose what I'm asking is, if I offer the same amount as the mortgage offer would mine be the offer most likely to be accepted? Or should I offer more?

Also is there anything that can be done to speed up the solicitor exchange process? If I make an offer I'd want this exchange to happen a.s.a.p because up until the moment of contract exchange the estate agent has an obligation to keep looking for higher bids.

One last thing, the Estate Agent has mentioned there has been an offer placed, should there not be a Public Notice posted on the property websites page due to the property being a repo? I thought that was a legal requirement of all repossessed properties.

Otherwise for all I know, he's just saying that to pressure me into placing a higher offer.

Any advice would be much appreciated!

anselld

The main thing to know is that Estate Agents are compulsive liars.
There would normally be a public notice but AFAIK it is not an absolute legal requirement.
You need to research sold prices etc and decide what you think it is worth.
With a repo you will always be at more risk of another offer, but if you have cash ready and a solicitor wo is proactive then there isnt much more you can do.

Sailmakers

If I had a pound for everytime an EA has said that about a repo I would be rich. He/she is playing you. Don't underestimate your position. You are in a gd place being a cash buyer.

Coatsy

anselld wrote: »

The main thing to know is that Estate Agents are compulsive liars.
There would normally be a public notice but AFAIK it is not an absolute legal requirement.
You need to research sold prices etc and decide what you think it is worth.
With a repo you will always be at more risk of another offer, but if you have cash ready and a solicitor wo is proactive then there isnt much more you can do.

That's been my experience with Estate Agents, I don't take it personally, it's just part of their job

In the area I'm looking at, it's the cheapest on the market. Assuming the surveyor comes back with no big ticket items that need replacing etc then the asking price is right for the market right now compared to other properties.

Thanks for the reply Anselld, is there anything you can do to encourage to get the solicitor to get the contract exchanged quicker?

Offering more money for their services if they can complete within say 7 days or something? I.e. A bonus?

That's my big concern if this takes 4 - 6 weeks to complete, other offers coming in and possibly ending up in a bidding war raising the price by quite a bit or even worse, the property being outside my budget.

Coatsy

Sailmakers wrote: »

If I had a pound for everytime an EA has said that about a repo I would be rich. He/she is playing you. Don't underestimate your position. You are in a gd place being a cash buyer.

Interesting

Would it be worth testing the water placing an offer either at the asking price or below the offer the "supposed" other buyer with a mortgage has placed?

anselld

Coatsy wrote: »

Thanks for the reply Anselld, is there anything you can do to encourage to get the solicitor to get the contract exchanged quicker?

Not that I know of, other than making them fully aware of your desire for speed and perhaps willingness to pay for special delivery, etc on any written communications. You are paying the solicitor to protect your interests so they will not cut corners (quite rightly).

Don't forget your own offer might be subject to public notice and you may be dealing with a vendor or vendors solicitors who do not have the same desire for urgency.

anselld

Coatsy wrote: »

cheapest on the market

That sounds like you are looking at asking prices.

You need to base your research on sold prices.

Fire_Fox

Put your offer in writing making it clear you are a cash buyer, have your conveyancer on standby (include their name and address) and are keen to proceed quickly. The agent can then pass this on to the lender who is selling. To speed up the process tell your conveyancer it is a repossession and rung them a couple of times a week, be able to get into the conveyancer's office to sign things instead of waiting for Royal Mail, be able to get funds to them for searches and suchlike quickly, perhaps offer to pay a wedge up front which they can draw on. If you have not got a conveyancer on standby, get one. Also decide now who you are going to use for a survey and establish how quickly they can get the report to you.

Agree you should be looking at land registry sold prices for the area, not for sale prices which are often inflated and unrealistic in a recession. Have you considered buying at auction since you are a cash buyer and after a bargain?

Coatsy

anselld wrote: »

Not that I know of, other than making them fully aware of your desire for speed and perhaps willingness to pay for special delivery, etc on any written communications. You are paying the solicitor to protect your interests so they will not cut corners (quite rightly).

Don't forget your own offer might be subject to public notice and you may be dealing with a vendor or vendors solicitors who do not have the same desire for urgency.

I hadn't considered those points, I guess there is a reason why it can take this amount of time to sort out the legal aspect.

anselld wrote: »

That sounds like you are looking at asking prices.

You need to base your research on sold prices.

Yeah those are asking prices I have mentioned, sorry about that.

Properties in the area have sold for quite a bit more than this property is on the market for so it's a reasonable price for the property.

Coatsy

Fire_Fox wrote: »

Put your offer in writing making it clear you are a cash buyer, have your conveyancer on standby (include their name and address) and are keen to proceed quickly. The agent can then pass this on to the lender who is selling. To speed up the process tell your conveyancer it is a repossession and rung them a couple of times a week, be able to get into the conveyancer's office to sign things instead of waiting for Royal Mail, be able to get funds to them for searches and suchlike quickly, perhaps offer to pay a wedge up front which they can draw on. If you have not got a conveyancer on standby, get one. Also decide now who you are going to use for a survey and establish how quickly they can get the report to you.

Agree you should be looking at land registry sold prices for the area, not for sale prices which are often inflated and unrealistic in a recession. Have you considered buying at auction since you are a cash buyer and after a bargain?

That sounds like some great advice, thank you!

I have been down the auction route before as far as being interested and getting very close to buying at auction but most properties I was interested in required quite a bit of work and I came to the conclusion that there was just too many unknown costs, even after getting a surveyor on two properties.

I'm buying something cheap with cash so I have no mortgage, I just want something that requires very little work. Buying with cash will take out 90% - 95% of my budget so I'm hoping to do the place up in time with the money I'd save from not having a mortgage to pay each month.

I'm by no means loaded, I'm just realistic about the current financial climate. I'd rather be mortgage free with a cheap property than put 20 - 25% down on a deposit and have a big mortgage to pay each month.

Fire_Fox

I am mortgage free and it is wonderful, I can afford to work part time!