Making an offer for a repossessed house?

helptheden

Hi,
I am currently considering putting in an offer for a house that was repossessed around 3 months ago... The estate agent who did the viewing gave some 'advice' as to what he feels would be a good offer..I thought i'd ask here to see if this 'advice' seems ok...

The property is a 4 bed detached house on a housing development that is 5-6 years old now (I currently live on this estate in a two bed property).

Up until a couple of days ago there were two recently repossessed properties for sale.

Property 1 was up for sale for £366,000, the agent informed me that the exchange completed a couple of days ago for £350,000.

Property 2 (the one i have viewed) is up for 365,000. The agent informed me that property 1 was in slightly better condition and that property 1 also had a conseratory.

I really liked the house, however it was a bit sad to see the state in which it has been left in..I think the work required is mainly cosmetic (re-paint, new carpets, some work on bathrooms/kitchen etc)..

As it is a repossessed house, i thought that the price would be pretty negotiable, however, the estate agent said that normally the price is less flexible as the bank are not in such a rush to recoup their money.....

He told me that property 1 had just exchanged for 350k, he felt that there is prob 10-15k to spend on updating the property and therefore hinted that an offer of 10-15k less than asking price might be on the right lines. He also mentioned that someone had an offer of 340k turned down a month or two ago...

He explained that repossessed houses have to exchange in 28 days and therefore suggested that i get my property on the market asap....

I have had a valuation of my property and intend to put it on the market asap, however, I am unsure whether to trust the advice of the estate agent (I know they are after a sale at a high price as possible...

Any advice re: putting in an offr for a repossessed house?

Thanks in advance

Jorgan_2

The lender in possession will usually only consider offers from buyers who can exchange within 28 days. I have had them them not even entertain offers buyers who are sold, subject to contract, because some links in the chain had not had surveys done at the time of the offer going in.

As for getting it at a good price, each case is different. A repo I sold last month went for 1.7% less than the asking price, several offers were made mainly 5-10% below asking, but the lender wanted the asking price. That one had to exchange in 21 days.

Another repo sale agreed two weeks ago is going through at 11% below asking price.

poppysarah

They are supposed to publicise offers they get so it's all done "fairly" in the eyes of the repossessors.

So you need to know where they are in the local paper...

loftysgirls

I have been reading this post with interest.

I have my eye on a property which has been repossessed (still waiting to sell mine).

It needs alot of work doing to it (including new kitchen and bathroom) and is on at 162k. An identical house sold last year for 180k but needed no work.

I was chatting to my agent who also works with the same repossession company and he told me that when i was precedable I should consider making an offer around the 140k mark as he reckoned it would be accepted.

After reading this post I am doubting what he said!

Kez100

Don't listen to an EAs advice unless it is backed up by proven fact. They are salesmen and - at the moment - salesmen under pressure.

To offer on a repo and get a bargain you will need to be in a strong position. Once you are then make a cheeky offer and even if agreed understand you have to move quick while the bank advertise the offer. The less buyers there are out there the better!

At the moment there are not that many repos around.The more there are, I suspect the lower the offers you can get away with.

Also remember - you need to be able to raise the mortgage which may not be so easy at the moment.