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tim123

Ea Trick Or Not?

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Having been pointed to the Countrywide Auction by another thread, I took a look and found 5 properties in my area that look slightly interesting to me.

They are all repos, with guide prices between 50-80.

This represents the 2002 price and having seen that many auction properties now go for guide or slightly over, getting one of these properties at guide looks, to me, like a "deal".

However, when doing my DD I discovered that every one of these properties is on rightmove 3 times. The first with the auctioneer (fine), the second - the auctioneer's partner who's arranging viewings (still ok) and a third one. With me so far?

And in every case the third EA has "We are selling this on behalf of XX mortgage Co, we have received an offer of Y and if you wish to improve on it you must contact us immediately". With Y being 30% over the auction guide (or about "today" prices).

Is this likely to be for real, or is this a trick from the third EA, who can see that if the properties go to auction thay are not going to get paid, to try and encourage a good enough Pre Auction offer for ithe property to be withdrawn? I CBA to go and visit these props if they are going to be withdrawn.

I should add that there was a local property in a December auction that was also "under offer" before being placed in the auction, but that was with the auctioneer's partner EA, so didn't seem suspicious (and was in fact true).

What do people think? Should I go and see them, or should I let them pass this time and "learn" from what happens. I'm not wildly struck by any of the properties, as none of them has one of my "nice to haves" - parking! I'm looking at them to live in BTW and I don't have a car, so it's not a deal breaker, but somewhere to park is always going to make life easier (and the prop easier to sell on).

Mumble mumble, not sure what to do?

tim

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If you need a home, and can afford it, go for it.

If you're not desperate and can wait at least a year, wait. Or at least until something eye-popping hits your view.

I think (as other threads are indicating) that there will be a bit of a hyped upturn for a month or so .... followed by the proper crash.

Don't get drawn in if you don't need to be.

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Having looked at a few "guide prices", and then checked the actual sale price, it seems guides are often much lower than actuals to sucker people in.

Much like the Scotland offers over system. All a con, and bears no resemblance to actual sale price.

I'm sure there are a few genuine "deals" out there. But not that many at the moment.

Edited by HAMISH_MCTAVISH

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For what its worth, its unlikely to be a trick. This agents blatant 'trick' would not go down well with the auction house, the mortgagees in possession nor the other agent. I think the local trading standards would have a thing or two to say as well. You could find out for sure by placing an offer for a slightly lesser figure with the auctioneers agent. If they decline it, there's your answer.

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I know of a similar scenario -

Property on market for over 12 months - with one EA - Public notice this week - offer price is at todays levels apparantly

Ea has three offers apparantly.

Also went to auction didnt sell

Two other properties (not quite as nice in same road - but far, far cheaper) on open market for sale

Property also advertised as NEW with Pure Acquisition (who I'm guessing are another arm of Countrywide?).

Either this EA has done magnificently in todays market, or something weird's going on

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So one person thinks it's a scam and another thinks it's OK?

As to "if it's the right property, go for it", well it's not really.

It's somewhere (acceptable) to live in, at a price that I think doesn't leave me exposed to much downside, in a location that is rentable if I want to move before the market picks up.

Still not sure what to do

tim

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So one person thinks it's a scam and another thinks it's OK?

As to "if it's the right property, go for it", well it's not really.

It's somewhere (acceptable) to live in, at a price that I think doesn't leave me exposed to much downside, in a location that is rentable if I want to move before the market picks up.

Still not sure what to do

tim

You've answered this yourself really. The houses are nothing special, theres no parking (which you would prefer) and prices are still dropping, so give it a miss. They dont seem to be ticking any of your boxes. Be careful you dont buy, just cos it seems a decent deal. There will be more coming & probably cheaper & better, or certainly as good as.

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How do you know they are repos - does it say so on the Rightmove site?

Last week another HPCer posted that EAs are required by law to post the details of repos for sale in a local paper for 7 days - I was not aware of this. Anyone know if it is true or not? Surely local papers are about to be inundated with ads if so?

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You've answered this yourself really. The houses are nothing special, theres no parking (which you would prefer) and prices are still dropping, so give it a miss. They dont seem to be ticking any of your boxes. Be careful you dont buy, just cos it seems a decent deal. There will be more coming & probably cheaper & better, or certainly as good as.

+1

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How do you know they are repos - does it say so on the Rightmove site?

Last week another HPCer posted that EAs are required by law to post the details of repos for sale in a local paper for 7 days - I was not aware of this. Anyone know if it is true or not? Surely local papers are about to be inundated with ads if so?

It does yes, or to be precise it says "being sold on behalf of XYZ Mortgage Co" which reading between the lines means that it's been repossessed.

More complicated are the ones that say "Sold on behalf of Local Council or Police Authority" It's not clear to me what that means.

I don't think that they have to place an advert, as such. I suspect that the fact a house has been repo-ed will appear hidden in the court listings.

tim

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You've answered this yourself really. The houses are nothing special, theres no parking (which you would prefer) and prices are still dropping, so give it a miss. They dont seem to be ticking any of your boxes. Be careful you dont buy, just cos it seems a decent deal. There will be more coming & probably cheaper & better, or certainly as good as.

I'm only considering these properties at guide. If they go through the roof I will walk away.

They sold new(ly converted) mid 2005 for 85, there is only one sale of a similar conversion in 2007 and that was for 110.

Thus 55 now is a 50% discount from peak, so I'm happy that they wont go much lower. Rental value would appear to be 450, even renting at 400 to keep it full would be an OK return on 55K.

As has been said elsewhere, I have to live somewhere, my current rental is unsuitable for the long term, so I have to do something.

I know that there will be some more buses along (I just wish that you got more notice).

Thanks

tim

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Generally I have found that auction 'guide prices' are generally below the reserve. The are just the carrot. Its probably illegal but a law is only a law if people generally obey it, and if when they don't it is generally enforced. Britain has a great deal of legislation that is generally ignored unless someone makes a fuss. And who can make a fuss when everyone is expected to work 50 hours a week?

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I'm interested in a property in the next countrywide and there's no third advert with offer on this one.

I actually enquired with auctioneer about making an early offer but they said there was no point as it was a repo so needed to go to auction to prove they'd got the best price. He said the only way they'd consider it is if it matched the last EA advertised price (£30k above guide).

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How do you know they are repos - does it say so on the Rightmove site?

Last week another HPCer posted that EAs are required by law to post the details of repos for sale in a local paper for 7 days - I was not aware of this. Anyone know if it is true or not? Surely local papers are about to be inundated with ads if so?

On an accepted offer on a repo - there does have to be a public notice in the local rag. Sometimes they even put in on Rightmove with the listing that an offer has been agreed at x price

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Sorry but I'm unlikely to believe an EA when they say something like that.

Some will some wont. As a patron of this site, I will make an informed comment with regard to what some posters might percieve to be dodgy/bad behaviour by agents. I have yet to find a case where I havent come across a similair scenario in my working day, and of course nothing dodgy is going on.

In this 'profession' it is usually the law or vendors that make us look like we are up to no good. Of course I cant speak for all.

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Having been pointed to the Countrywide Auction by another thread, I took a look and found 5 properties in my area that look slightly interesting to me.

They are all repos, with guide prices between 50-80.

This represents the 2002 price and having seen that many auction properties now go for guide or slightly over, getting one of these properties at guide looks, to me, like a "deal".

However, when doing my DD I discovered that every one of these properties is on rightmove 3 times. The first with the auctioneer (fine), the second - the auctioneer's partner who's arranging viewings (still ok) and a third one. With me so far?

And in every case the third EA has "We are selling this on behalf of XX mortgage Co, we have received an offer of Y and if you wish to improve on it you must contact us immediately". With Y being 30% over the auction guide (or about "today" prices).

Is this likely to be for real, or is this a trick from the third EA, who can see that if the properties go to auction thay are not going to get paid, to try and encourage a good enough Pre Auction offer for ithe property to be withdrawn? I CBA to go and visit these props if they are going to be withdrawn.

I should add that there was a local property in a December auction that was also "under offer" before being placed in the auction, but that was with the auctioneer's partner EA, so didn't seem suspicious (and was in fact true).

What do people think? Should I go and see them, or should I let them pass this time and "learn" from what happens. I'm not wildly struck by any of the properties, as none of them has one of my "nice to haves" - parking! I'm looking at them to live in BTW and I don't have a car, so it's not a deal breaker, but somewhere to park is always going to make life easier (and the prop easier to sell on).

Mumble mumble, not sure what to do?

tim

just wait 24 months. everythings far to unpredictable.

one things for sure, theres no boat to be missed anymore.

relax. enjoy your life. buy one later.

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Some will some wont. As a patron of this site, I will make an informed comment with regard to what some posters might percieve to be dodgy/bad behaviour by agents. I have yet to find a case where I havent come across a similair scenario in my working day, and of course nothing dodgy is going on.

Will find out in two weeks when I see whether they are in the Auction or not. Will report back!

I've decided to give them a miss and wait for the next bus.

thanks

tim

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Well today was the day of the auction.

One of the properties was indeed sold prior and withdrawn from the auction, but the other four were not.

And they didn't sell!

So there are now 3 properties all available at 50K and one at a quoted 100k (which seems wrong), which another EA claims they have offers on at 65+.

I'll give the EA a ring tomorrow and see what gives.

The aucton was a diaster (or not, depending on you pov) with only 13 out 29 lots sold on the day (not counting the withdrawn lots).

http://www.countrywidepropertyauctions.co....ndonA.Jan09.pdf

tim

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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