To buy or not to buy a Reposession??

brailsford58

There's a flat I like which is going at quite a cheap rate as it's a repossesion. It was initially advertised at £115k and now an offer has been accepted by a third party at £125k. I want to put an offer in on this flat.

What is the general thinking around buying a reposession? What offer do you think I should put in? What are the advantages vs disadvantages of buying a repossesion? Any advice would be great, thanks.

greenface

Offer what you think its worth to you and what you can afford . Impossible question to answer . sorry not much help i know but neither is your question

gallygirl

You need to be able to prove you can proceed very quickly - a mortgage offer in principle at the very least. Even if an offer is accepted they will still remain open to other offers so be prepared to push, push push on the conveyancers and still possibly lose it.

Not sure if an extra 1k would do it so be prepared to offer more, but only if you think it's worth it - it's not ebay!

I've bought 2 repos and got good deals on both, but looked at others which were no cheaper. It's stressful due to condensing the time scales but at least it's over and done with quickly.

Finally, with a repo, be prepared for lots of letters chasing ex-owners!

Farside

All the repo's i have tried to get the EA's have asked for DIP, solicitors info and deposit proof before they will proceed any further.

Don't forget to double check the place, the places i saw had been stripped bare, no lights, no boiler, no carpets etc

G_M

and remember until you Exchange the bank will keep marketing and considering offers. Youmight pay out forsurvey, mortgage, solicitor, and then have someone make a better offer a week before Exchange.

Repos can be stressful.

And expensive.

Yorkie1

You also won't get any seller's info e.g. when any work was done to the place, as the seller is the bank and not someone who has lived there.

Atidi

brailsford58 wrote: »

There's a flat I like which is going at quite a cheap rate as it's a repossesion. It was initially advertised at £115k and now an offer has been accepted by a third party at £125k. I want to put an offer in on this flat.

What is the general thinking around buying a reposession? What offer do you think I should put in? What are the advantages vs disadvantages of buying a repossesion? Any advice would be great, thanks.

So presumably this property is being sold via an Estate agency?

Unlike an estate agent to so vastly under value a property they offer for sale, especially a repo.

Anyway, with an offer of £125k already accepted, you'll need to improve on that to stand any chance of being considered.

I would expect you would need to offer at least £128k to be considered, maybe even £130k (and assume the current interested party won't match you) ... and then you'll need to be able to prove you can proceed quickly.
£130k would be over 13% more than the EA priced it at, and they usually price a property at 5-10% more than they think they will sell it for.

If accepted, you'll probably end up in a contract race if you do want to proceed, .... but you are not even in the starting blocks yet and the starting pistol has already been fired!