Seen a bargain house what can we do?

burnard5

Hi,

Me and my partner have had our house up for since the middle of December. As yet we have had no interest in it. Yesterday we've seen a house we would like to buy. A few months ago this house was up for sale at £160,000 but over the last few months has been reduced to £134,000 as the house was repossessed so the Estate Agents want to sell it as soon as they can. There is no doubt this is a bargain even though it needs some work.
I'm just wondering what options are available to us to secure the property even though we haven't sold our present home? At this price I can't see it being around for long.

Many Thanks
Darren

merlinthehappypig

Without selling your own home, not a lot, unless you happen to have the cash.

You can try to get a bridging loan, but will be making two payments monthly until you can clear it (current mortgage and bridging loan). The bridging loan is likely to be quite expensive and it won't take long before the interest payments on that eat deeply into the bargain price of the new house.

As you have had no interest on your house you would need to bank on the bridging loan being around for quite some time so I can't see this being a sensible move, however cheap the other house is.

The other option is to sell your house quickly, either by reducing the price heavily or selling it at auction.

TBH a reduction from £160000 to £134000 might not be as good as it might seem. Most sellers are having to reduce prices if they need to sell, at present. Have you looked at what other similar houses have gone for recently? If it is a genuine bargain you can bet that someone with the cash will get it before you are ready to make an offer.

AMILLIONDOLLARS

If you really want this other house, then you'll need to reduce the price on your own house for a quick sale.

AMD

TTMCMschine

burnard5 wrote: »

Hi,

Me and my partner have had our house up for since the middle of December. As yet we have had no interest in it. Yesterday we've seen a house we would like to buy. A few months ago this house was up for sale at £160,000 but over the last few months has been reduced to £134,000 as the house was repossessed so the Estate Agents want to sell it as soon as they can. There is no doubt this is a bargain even though it needs some work.
I'm just wondering what options are available to us to secure the property even though we haven't sold our present home? At this price I can't see it being around for long.

Many Thanks
Darren

I would look at the price from a different angle - like Merlin. It's been reduced, because £160k was too high. It's been reduced to the price it "should be", or rather to what the EA thinks is a more realistic price. I'm selling my grandmother's house. It's been reduced three times. The EA's don't say "let's reduce the price to a bargain". They say "The house is up for too much, it hasn't had an offer, let's reduce it."

£160k is the price they wanted or needed, but that doesn't even mean it's worth £134k. It may not even show any interest there, in which case they would have to reduce it by more. A house is only worth what someone is willing to pay for it. Look at it in terms of % - £134k is roughly just over 16% of the original asking price. Will it be worth 16% less in six months i wonder?

Capricorn_One

It's easy to get emotionally attached to a house you're looking to buy. In a few months there may be other "dream houses".

ruggedtoast

Me and my partner have had our house up for since the middle of December. As yet we have had no interest in it

This makers me somewhat pessimistic about the accuracy of your property valuations to be honest. Is the other place really a bargain or was it just very over valued before?