Is this normal?

Pumpkin_Pie_5

Hello all,

We have made an offer on a repossessed house (one we feel is quite fair - About 90% of asking price). The repossession company said no way Jose. OK, then the estate agent has told us that she will remarket the house at 95% of asking price in the paper and on rightmove and once it has been there for a week, they will accept the new asking price, ie 95% of the original asking price.

I don't really understand all this - I assume it's bits of paper to get what we want, but has anyone had this before?

There hasn't been much interest in the house except us and another person, who isn't in such a good position as us.:T

We really want this house - I know you should buy with your head and it is a good price for this area;)

I guess I'm a bit worried as my OH seems to think that the estate agent is on "our side" (no matter how many times I point out that they are always on the "side" of the seller!)

Any thoughts as always welcome
Pumpkin x

Davesnave

Estate agents are on their own side! If they think they will get a good, quick sale through you, they may 'help,' especially if they fear price drops in the area. However, I think yours should be encouraging a bit more haggling between you & the sellers rather than the convoluted method you describe. Could they have their own reasons for doing this?

You are saying your offer is 'fair,' and yet the house is at a 'good price,' so which is it? You really want the house, so why wait for it to go back on Rightmove at 95%? Why not offer 7.5% below now and see where that gets you?

Pumpkin_Pie_5

Sorry I'm not being very clear I think

I think it was a fair offer for the asking price of the house - And I believe that they haven't over egged the asking price.

Apparently this is the only way the repossessor will accept any price - ie it has to be an asking or advertised price - So once it has been remarketed that is the new asking price and that is acceptable.

We also understand that there is little negotiating to be done with a repossession - Once a price is decided on, that is the price you pay.

clutton_2

Both Lenders and EAs now have to get the best possible price for repossessed houses, and have to be seen to be doing that - in the 1980's/90's many repos were sold for disgustingly low prices - thus leaving folks with huge debts to repay for many years to come - the Council of Mortgage Lenders had to be seen to be helping folks reduce their debts - hence the "maximum" price has to be attained.

Pumpkin_Pie_5

Thank you all for advice, both on here and throughout this forum - Thanks to you we are buying the house of our dreams at the price we can afford:j

AND as a double plus bonus our landlord (who was getting finnikity about us signing another lease) has gone all quiet after we said "Oi, how about a gas safety certificate?".:T