Advice for 1st time buyers please

Love2cruise

Hi we are hopefully going to place an offer on a property we have seen and fell in love with, we are currently awaiting for our mortgage in principle before offering.

I have been advised that this property is owned by a bank and although up for £89,950 they received an offer for £87,000 and declined it, however, the estate agent has advised that they would now accept £87,000

As you can see the price has dropped £5000 in a matter of 10 days from being listed and I am unsure what to go in at.

In an ideal world we'd like to go in at £85,000 but I have been advised that as this is presumably a repossession a notice will be displayed in the local paper advising of the offer and that anyone wishing to bid higher must do so within so many days - do we go in at £87,000 and ask them to remove the property immediately from the market or try £85,000?

Any advice would be greatly welcomed and appreciated

Thanks in advance

kinger101

If it does come to a situation where your offer is accepted but the property remains on the market, just make sure you're in a position to complete ASAP.

Loopy28

Hi there, regardless of what you offer, on a repossession they will display the offer and invite others to offer higher, up until exchange of contracts.

This is because the bank have an obligation to get the best price they can.

The EA will tell you anything to get you to offer the highest price possible so ignore them and offer what you want but be aware that you could possibly be outbid after you have paid for searches etc. However, in my area people avoid repos and this doesn't really happen.

I have had two friends buy repos recently, neither were outbid at any stage. One house was on for 165k, then reduced to 159, then 155 and then 149k. They offered 145k, it was accepted and they went through to exchange.
My other friend offered 125k on a 150k house, the bank said they would accept 135k and again they exchanged without any higher offers.