First time buyer - repossessed house - No response on offer 31 December 2012 at 3:25PM in House buying, renting & selling 7 replies 2.2K views

Rushabh

Hello friends,

I need some tips for the deadlock situation we are in.

We are looking to buy a repossessed house (Market price approx. 143K), 2 blocks away from our house. the house condition is OK, will need atleast 10K of work.
Our first offer was 124500 and was straightaway rejected, after a weeks time I made an offer of 130K and that too was rejected.

After a weeks time, the EA published in their website that they are working towards an offer of 138K (same thing was there in rightmove) and thereafter in 3 days I made an offer of 140K (and this is the max we can afford). EA has submitted my offer to the vendor and I have recieved the letter.

It has been more than 15 days and I have not heard anything from EA. A week before Christmas holidays I called the EA and asked for update. She said that the previous offer of 138K was accepted and she's waiting from the vendor to hear abt my offer of 140K. I asked why its taking this long and she said she'll ask the vendor and let me know. She added that vendor might not be interested in changing the buyer as your offer is only 2K higher and so you might need to increase your offer but she'll get back to me once she hears from vendor. I find this very strange as its a repossessed house and usually the highest offer gets through, I am still waiting to hear from the EA.

Any tips or suggestions?

Thanks,

Rushabh

G_M

Rushabh wrote: »

.... I find this very strange as its a repossessed house and usually the highest offer gets through, I am still waiting to hear from the EA.

Any tips or suggestions?

Thanks,

Rushabh

Not so strange. The bank will balance their goals of obtaining the best price possible, and getting a speedy sale.

If your offer is only 2K above the accepted one, and the current accepted one is already well on the way to Exchange, they may prefer to forgoe the extra 2K rather than have to start the sale process all over again.

happylife

I have just gone through the same process. Bought a Repo for £88k and was accepted (but would continue to listen for new offers), so I had to move quickly.
A week later I believe they had received an offer for £90k informed me that I needed to exchange by 11th December otherwise other party will be given oppoortunity to exchange.

Basically you have to move quickly and have everything in place to exchange and they will accept whoever comes first if the other party is dragging their heels,

A cash offer probably would have gazumped me.

Just because they have accepted doesn't mean they won't listen to new offers.

I'm now the proud owner of a very run down but potentially profitable property :T

The quickest to exchange always wins the race with Repo's At least that's what my estate agent told me. Even at a lower price once they have accepted.

artbaron

They're likely leaving it as long as possible in case the first offer falls though or problems develop, then they'd move on to you.

Rushabh

Thanks for info guys,

I made my offer of 140K next day when they published that they are working on the offer of 138K so its not that I have made my offer after 2 to 3 weeks but I get your point. May be I have to forget about this house...... as now it has been nearly 3 to 4 weeks from the day they published that they are working towards 138K offer

Rushabh

Just spoke with the Estate Agent, they said that they have recieved lots of offers above 138K and they are waiting to hear from the vendor. I asked how long its going to take as it has taken already more than 15 days and she said she does not have any control over the vendor and the coorporate client has to speak with their client.... Its bit frustrating, I think I'll simply have to wait.

camptownraces

OP
Are you a cash buyer?
If so, have you made that clear to the vendor? This would be worth quite a lot in the scheme of things.

Rushabh

No, I am not a cash buyer..... I wish I had that much cash...