Repo - what are the rules?

Dipak

I've seen a house i like which is a repossession. It previously sold but now sale has fallen through and back on the market at a reduced rate.

I decided to put in an offer lower than their reduced rate. I know that the company must try and get the best offer possible but can they decline my offer even when they have no other offers on the table?

Any advise would be appreciated.

Cheers,
D

G_M

Depends ho keen they are to sell.

Dipak

G_M wrote: »

Depends ho keen they are to sell.

Thanks!! the house had been on the the market for 18 months prior to coming back on the market. I just wondered if the estate agent is pulling a fast one and maybe not put the offer forward. The estate agent did say that my offer has been declined and the managing company will not accept anything less than the asking price, just seem a bit odd to me.

Mossfarr

yes of course they can refuse your offer, they are legally obliged to get the best price they can. Having said that, it depends how desperate they are to get it off their hands. They are much more likely to accept a low offer from a cash buyer or from somebody who is in a position to move quickly, particularly as sales have previously fallen through.

Don't forget they are also legally obliged to put a public notice of your offer in the press and invite higher offers.
Are you certain there are no other offers, repossessions are often marketed by several agents at the same time?

I have purchased two repossessed properties, I offered below asking price on both, one was accepted the other wasn't. Swings and roundabouts!

Dipak

Mossfarr wrote: »

yes of course they can refuse your offer, they are legally obliged to get the best price they can. Having said that, it depends how desperate they are to get it off their hands. They are much more likely to accept a low offer from a cash buyer or from somebody who is in a position to move quickly, particularly as sales have previously fallen through.

Don't forget they are also legally obliged to put a public notice of your offer in the press and invite higher offers.
Are you certain there are no other offers, repossessions are often marketed by several agents at the same time?

I have purchased two repossessed properties, I offered below asking price on both, one was accepted the other wasn't. Swings and roundabouts!

Thanks!! The estate agents advised me that no other offers have been received.

alan0356

If you liked the house when it sold for a higher price you must like the house even more now it has been reduced ! - just offer the asking price if you like it that much !!

Also by offering the asking price it will reduce your chances of being outbid by somebody willing to match or increase the asking price.

Bear in mind that when purchasing a repossessed house even if your offer is accepted the property will still be marketed and higher offers may be accepted - the only time you will know the property is going to be yours is on exchange of contracts so up to then any costs incurred such as valuation fees, solicitors fees, search fees could be lost.

By offering the full asking price and advising selling company you will look to complete in 28 days will most probably ensure you get the property - just make sure that if you require a mortgage that you use a mortgage broker who can recommend a lender who can process your application quickly and that your nominated solicitor is aware of the time scales - if the seller receives valuation access and solicitor correspondence within a few days of receiving your offer they are more likely to treat you as a serious buyer.

I am a mortgage broker and this reply is for information only.