Repo House at Fixed Price Going to Closing Date

SCDH

A repossessed house (in Scotland) for sale that's about 40k under market value, the Lender is English and is selling through an Estate Agent at 'Fixed Price' but has set a closing date to try and achieve the highest possible offer. Has anyone heard of a 'Fixed Price' going to a closing date before?

davidmcn

SCDH wrote: »

the Lender is English

Not relevant.

Has anyone heard of a 'Fixed Price' going to a closing date before?

Yes, not uncommon. Ignore the fact it had been marketed with a fixed price and treat it like any other closing date.

Has your solicitor noted interest on your behalf (assuming you are actually interested)? They'll provide guidance.

theartfullodger

I'd put in a bid significantly below that "fixed price" as a gamble. You might get lucky!

davidmcn

theartfullodger wrote: »

I'd put in a bid significantly below that "fixed price" as a gamble. You might get lucky!

...but pretty unlikely to. In my experience, even repos which go to closing dates end up selling at or above the Home Report valuation (assuming that's what the OP means by "market value").

bap98189

SCDH wrote: »

A repossessed house (in Scotland) for sale that's about 40k under market value, the Lender is English and is selling through an Estate Agent at 'Fixed Price' but has set a closing date to try and achieve the highest possible offer. Has anyone heard of a 'Fixed Price' going to a closing date before?

Ignore the "fixed price" part. It is meaningless as the vendor is under no obligation to accept offers if they don't want to. It's a sealed bids sale. Highest proceedable bid submitted by that date will get it.

pinklady21

What is the Home Report value? Anywhere near the Fixed Price? Usually when you see Fixed Price, it is a signal that the vendor will accept the first offer that comes in at that price - but they are not obliged to.
To answer the question, no I have not seen this before, but it looks like the vendor is going to sealed bids at the closing date. Possibly they have received a number of offers possibly at or below the fixed price, and want to see what buyers think the property is worth and are prepared to pay for it.
Of course, at a closing date, there is no knowing how many bids there will be, if any!

AlexMac

All this means

SCDH wrote: »

A repossessed house (in Scotland) ...is selling... at 'Fixed Price' but has set a closing date to try and achieve the highest possible offer. Has anyone heard of a 'Fixed Price' going to a closing date before?

...is that the vendor has looked at Google, where as usual, there is completely contradictory information

This ranges from an Estate Agent's interpretation...

"there is no guarantee that an offer for the full asking price will be accepted... A good solicitor will advise you on the likelihood of being able to get away with an offer that is lower than the Fixed Price after speaking to the seller’s agent to determine the amount of interest... (but) ... the reason for rejecting an offer might just be that the seller didn’t like the potential buyer’s personality..."

https://www.mov8realestate.com/2013/04/what-does-fixed-price-mean-in-scotland-and-how-much-should-you-offer-for-a-property-at-fixed-price/

...to the Shelter advice which says the opposite; "fixed price means it will be sold to the first person to offer the price.... you should put in an offer as soon as possible".

https://scotland.shelter.org.uk/get_advice/advice_topics/finding_a_place_to_live/buying_a_home/making_an_offer

But surely the most important element of the OP is that

SCDH wrote: »

the Lender is English...?

As any fule (or anthropologist ) kno, and as respected research into National Stereotypes has determined, the English Oppressor and their financial institutions have deep pockets, short arms and a desire to exploit;

https://www.quora.com/In-the-UK-what-are-the-stereotypes-associated-with-English-Welsh-Scottish-and-Northern-Irish-people

Pixie5740

Shelter Scotland's website then goes on to say....

If the seller has advertised the property at a fixed price, then they will usually sell to the first person to offer them the price they have asked for. However, the seller may not accept the offer if the date of entry or other conditions in the offer do not suit them.

Pixie5740

davidmcn is right, you should ask your solicitor for guidance. Just because something has been advertised as having a fixed price doesn't mean it has to sell for that price.

sgun

People can still note an interest on a fixed price house. I assume a couple of people lodged a note so the vendor decided it would be better for them to go to a closing date. If the market is strong (like Edinburgh) it makes no sense to have a fixed price, maybe the vendor wasn't guided very well by their solicitor.

Having said that we just sold a flat to someone who offered significantly over HR value without going to a closing date, even though we had lots of interest as it made sense for us to get the sale out of the way before the Easter break. As a vendor you can sell however you like, there isn't a rule.

Thrugelmir

Lender have to realise the best possible price on behalf of the debtor (i.e. the mortgage borrower).