[bargain_hunter]

Hello everyone,

I have been browsing the forums but thought I would post this.
So I have been after this property in north London, which is a Repo. Originally was advertised for sale at £205k last year, then there was a price reduction in Feb 2012 to £195k.
I first viewed it in Feb, the house needed about £20k-£30k work but I really liked the size and garden. I put in my first offer in at £180k, the agent obviously wanted more and kept saying that there was a higher offer, so I increased to £185k, again the agent asked for more so I went to £190k then £196k and finally stopped at £200k (2003 price paid).

Now the agent is saying that the vendor has gone with another buyer and will give them until Friday to exchange. The agent has also told me that the vendor has also rejected an offer of £215k.

Just wanted to ask if there is some kind of rule (law) where the agent/vendor MUST look for the best offer as it is a Repo house. Is it not in the best interest on the poor person who is in debt with the bank?

I have just got the feeling that the agent is not being honest and is being bias towards another buyer for reasons which I am not aware of (maybe under the table dealings). I did a title deed search and found that the lender is Santander, however when I called the bank they said that it was not them who was selling it.

Any input much appreciated.

[tim123]

bargain_hunter, on 12 March 2012 - 05:28 PM, said:

Hello everyone,

I have been browsing the forums but thought I would post this.
So I have been after this property in north London, which is a Repo. Originally was advertised for sale at £205k last year, then there was a price reduction in Feb 2012 to £195k.
I first viewed it in Feb, the house needed about £20k-£30k work but I really liked the size and garden. I put in my first offer in at £180k, the agent obviously wanted more and kept saying that there was a higher offer, so I increased to £185k, again the agent asked for more so I went to £190k then £196k and finally stopped at £200k (2003 price paid).

Now the agent is saying that the vendor has gone with another buyer and will give them until Friday to exchange. The agent has also told me that the vendor has also rejected an offer of £215k.

Just wanted to ask if there is some kind of rule (law) where the agent/vendor MUST look for the best offer as it is a Repo house. Is it not in the best interest on the poor person who is in debt with the bank?

I have just got the feeling that the agent is not being honest and is being bias towards another buyer for reasons which I am not aware of (maybe under the table dealings). I did a title deed search and found that the lender is Santander, however when I called the bank they said that it was not them who was selling it.

Any input much appreciated.

Yes he does have to get the best offer.

But it's likely that the reason he's biased (if indeed he is) to the other buyer is because he isn't pissing around making insultingly low offers and going up in miniscule steps. EA's will have learnt that buyers like that are likely to try to gazunder on the day of exchange and will avoild them if the have another option!

tim

[peter_2008]

tim123, on 12 March 2012 - 06:22 PM, said:

Yes he does have to get the best offer.

But it's likely that the reason he's biased (if indeed he is) to the other buyer is because he isn't pissing around making insultingly low offers and going up in miniscule steps. EA's will have learnt that buyers like that are likely to try to gazunder on the day of exchange and will avoild them if the have another option!

tim

That's harsh, but honest.

Banks are often technically not the seller. It’s usually done by a solicitor on behalf of the bank.

I pulled out of buying a repo recently, because a bidding war started and I didn’t want to participate. I found out actually repo selling through estate agents often isn’t a good deal and is high risk. The main issue is getting gazumped. As most repo deals will have to complete transaction within 28 days (same as auction) and is advertised and open to offer until the last minute, there is a very high risk that you will have to pay for valuation, mortgage arrangement fee, solicitor fee (easily £1000+) as soon as the offer is accepted and then find someone bid £2000 more than you just 3 days before exchange! (which was what happened to my friend).

I would suggest a better chance either
1. buy repo at auction (because it’s difficult for vendors to back out) or
2. find a motivated seller, make a solid offer on the condition the property is taken off the market (because it’s difficult for vendors to back out, particularly once they paid solicitor)

[Travisher]

Having just bought a repo I'd say unless you have nerves of steel its not for you.

Assume you will lose at the last minute so get a mortgage deal that minimises what you pay up front on surveys etc..

Realise that agents will 'take a bid off the wall' in an attempt to get you to raise the offer ~ be very tardy about upping your offer, let them stew for a week at least.

There was a 28 day to exchange condition on ours and the agent kept it on the market right up till we exchanged. As the vendor pissed about, off sick/holidays or washing hair it was a full 60 days before the exchange actually took place even though we were ready to go.

Also Santandar offered a mortgage and then as they had oversold the deal they welshed on the offer and we had to scramble the next best offer. Santandar pretended it was because of the payments I make into my pension which had already been deducted from the figure submitted to them. I think it had more to do with their solvency than mine!

I reckon I saved about £7k as the house next door sold at the same time. Worth it if you like stress.
Oh and remember houses will fall about another 20% in the next year or so, so be prepared to take that hit or stay away.

[Bruce Banner]

tim123, on 12 March 2012 - 06:22 PM, said:

Yes he does have to get the best offer.

But it's likely that the reason he's biased (if indeed he is) to the other buyer is because he isn't pissing around making insultingly low offers and going up in miniscule steps. EA's will have learnt that buyers like that are likely to try to gazunder on the day of exchange and will avoild them if the have another option!

tim

Are you an estate agent?

[Bruce Banner]

Travisher, on 12 March 2012 - 11:15 PM, said:

I reckon I saved about £7k as the house next door sold at the same time. Worth it if you like stress.
Oh and remember houses will fall about another 20% in the next year or so, so be prepared to take that hit or stay away.

Why did you buy now rather than waiting?

[long time lurking]

[quote name='Bruce Banner' timestamp='1331594649' post='3283729']
Are you an estate agent?
[/quote

Guaranteed

[tim123]

long time lurking, on 15 March 2012 - 12:03 PM, said:

Bruce Banner, on 12 March 2012 - 11:24 PM, said:

Are you an estate agent?

Guaranteed

except that I'm not

tim