Low offer

jimmyscot

Hi,

(also posted on the buying and selling forum but thought it might benefit from this one as well)

I am trying to buy a house at the moment but the situation is that the sellers bought the house when the market was very buoyant and the price I am trying to buy it for is a lot less than the valuation and the offers over price (in the region of 15% less than the valuation and 5% less than the offers over price).

The problem I am having is that I assume that they cannot pay off what they owe on the mortgage with our offer so they are having to speak to their lender about selling which is taking a LOT longer than I am comfortable with.

Does anybody out there know what the lenders options are? I am guessing that the sellers are considering our offer and that is why they are speaking to their lender but can their lender turn round and tell them not to sell it? And if they do what happens?

Thanks.

Rov

There are two values to every house, the value that someone is willing to pay and the value at which the seller is willing to accept. Unless the two are close there wont be a sale.

The lender will want the full amount lent on the house repaid when they sell, unless they can port the mortgage to another house and take the hit themselves (i.e. can they get the house they want to buy at a big discount too).

Your best bet for getting a discount is a house where someone has died and the estate just want the cash and no hassle, or a repo. People who are looking to move somewhere else are unlikely to accept significantly low offers.

latecomer

Do you know that they are speaking to their lender or just guessing? Why do you assume they cant pay off the amount borrowed?

regardless as above - I would guess that offering significantly under valuation (offers over doesn't count for much in my book) is going to slow things down unless its been on the market for a long time and they are desperate to sell.

If you want it concluded quicker then offer something closer to what they want/need......

Thrugelmir

jimmyscot wrote: »

Does anybody out there know what the lenders options are?

Just sit tight. As it's the borrowers problem to resolve or at least propose a solution to.

Wutang_2

Rov wrote: »

There are two values to every house, the value that someone is willing to pay and the value at which the seller is willing to accept. Unless the two are close there wont be a sale.

The lender will want the full amount lent on the house repaid when they sell, unless they can port the mortgage to another house and take the hit themselves (i.e. can they get the house they want to buy at a big discount too).

Your best bet for getting a discount is a house where someone has died and the estate just want the cash and no hassle, or a repo. People who are looking to move somewhere else are unlikely to accept significantly low offers.

You seem to know a lot considering you know nothing about who/where/what etc

And I LOVE your last paragraph:eek::eek::eek: