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Just wanted some feedback on what to do next. Made an offer on a 3-bed semi. It is a repo, has been on market around 8 months and had its price lowered steadily to 79,000. It is up with 2 estate agents, one of whom tells me they have an offer on it. I offered £65,000 cash in writing over the weekend and the agent came back today and told me the vendor (ie bank) had turned the offer down. They asked would I like to raise my offer. I said that was highly unlikely as that was all I had.

Just wondering what to do next? Should I give it a week and raise it a couple of K (I can go higher financially)? Not sure what offer is on table or whether it is a solid one or not.

Any thoughts greatly appreciated...

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Find out when and what it sold for last, then you can determine what is owed to the bank and set an offer to that, it's unlikely they will take a hit on the property just now and prefer to wait.

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Find out when and what it sold for last, then you can determine what is owed to the bank and set an offer to that, it's unlikely they will take a hit on the property just now and prefer to wait.

Not enough data for that.

Presumably you would also need details of the previous owner's deposit, mortgage details(IO or repay.), details of outstanding arrears or overpayments etc to get a full picture of the balance outstanding.

But certainly it would give you a good indication of how much to offer the bank.

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Just wanted some feedback on what to do next. Made an offer on a 3-bed semi. It is a repo, has been on market around 8 months and had its price lowered steadily to 79,000. It is up with 2 estate agents, one of whom tells me they have an offer on it. I offered £65,000 cash in writing over the weekend and the agent came back today and told me the vendor (ie bank) had turned the offer down. They asked would I like to raise my offer. I said that was highly unlikely as that was all I had.

Just wondering what to do next? Should I give it a week and raise it a couple of K (I can go higher financially)? Not sure what offer is on table or whether it is a solid one or not.

Any thoughts greatly appreciated...

79K, 65K, like the good old days. Neils advice is a good starting point although it may have been a stupid 125% mortgage or something outrageous. Difficult one to judge but it is probably around 70K IMO.

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Why should he base his offer on what debts the previous owner has on the property and not what he thinks it is worth? Why should he share their stupidity and pain?

I think it's more to do with estimating the bank's minimum acceptable offer, rather than estimating the value of the house.

Besides, as we've discussed, it's going to be very difficult to work out the outstanding balance based on the information available.

It's a bit silly to assume that they were stupid to buy the house, or that they paid too much.

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Reposessions need to stay on the market until exchange, even if an offer has been accepted by the bank. You will at least need to beat this offer and have no chain or be sold STC if you want yours to even be considered.

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Not enough data for that.

Presumably you would also need details of the previous owner's deposit, mortgage details(IO or repay.), details of outstanding arrears or overpayments etc to get a full picture of the balance outstanding.

But certainly it would give you a good indication of how much to offer the bank.

Yes, indication.

I have been watching one in my area, went SSTC at £119,500 which was on at £124,995. It's back on the market again now. Strange figure really until you go digging further.

Now i know it was last bought for £119,000 in Jan 2006, now taking into account the previous offer that was accepted i would assume it was indeed bought with a 100% mortgage. I myself was thinking of an offer £110,000 but i know at this stage the bank will refuse. Maybe as the crash picks up steam they will be willing to take a hit.

Added

Another one was on at £150K went SSTC at £140K back on the market one week the agent reduced to £135K and it went SSTC again at £125K, a bit of digging tells me this last sold before 1996 so cheap, but the owners must have MEW'ed but well short of the market value, hence the bank will let it go as long as their money is covered. This house is back to Q2 2003 prices but just outside my cash limit.

Edited by neil324

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Why should he base his offer on what debts the previous owner has on the property and not what he thinks it is worth? Why should he share their stupidity and pain?

At this stage the bank will not sell at a loss, if the crash gets going then maybe they will. But we are not Ireland or Dubai.

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I know, after posting i knew something was missing.

It's a moral dilemma though. Half of me wants my reward for being prudent, ie, bring on the crash. The other half looks at the friends and family who will be up the creek if a crash comes.

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It's a moral dilemma though. Half of me wants my reward for being prudent, ie, bring on the crash. The other half looks at the friends and family who will be up the creek if a crash comes.

Not for me it's not.

I never benefited from it, but suffering more than most and will pay for it for the rest of my life.

****** em.

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I never benefited from it, but suffering more than most and will pay for it for the rest of my life.

This is what makes me angry too.

One thing I am happy for though, is being in my 30s. Those in their 20's are being beaten with a much bigger stick than the one hitting me.

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This is what makes me angry too.

One thing I am happy for though, is being in my 30s. Those in their 20's are being beaten with a much bigger stick than the one hitting me.

Agree. Those (of us) in their 30s have an interesting perspective to view things from. We paid less for our education than future generations will and we can still recall a time when houses were affordable. Those who jumped in too quickly still have time to sort things out. Those who have waited this out (and still are) may have a few years they can hold out before needing to take a 25 year mortgage. The generation at the crossroads (hang on, that's almost an X shape isn't it!).

Edited by rantnrave

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I think it's more to do with estimating the bank's minimum acceptable offer, rather than estimating the value of the house.

Besides, as we've discussed, it's going to be very difficult to work out the outstanding balance based on the information available.

It's a bit silly to assume that they were stupid to buy the house, or that they paid too much.

Did you not read the opening post?

It is a repo, has been on market around 8 months and had its price lowered steadily to 79,000. I offered £65,000 cash

That reads to me as if they paid too much.

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Agree. Those (of us) in their 30s have an interesting perspective to view things from. We paid less for our education than future generations will and we can still recall a time when houses were affordable. Those who jumped in too quickly still have time to sort things out. Those who have waited this out (and still are) may have a few years they can hold out before needing to take a 25 year mortgage. The generation at the crossroads (hang on, that's almost an X shape isn't it!).

All of the people I know who are buying right now, (only a handful) are in their late 30s. It is that 25-year-mortgage thing that is lurking on the horizon which is acting as a fuzzy deadline.

Were we luckier with house prices? I'm not so sure it was ever easy. In my case I remember at the bottom of the market, around '95, houses were equally unaffordable. Where I was at the time, I was earning 13K, and the cheapest houses were about 50K. A few years later, I was earning 16K, and starter homes, out of town, were 80k. (1998).

But as you say, we didn't have 30k of debts before even leaving Uni.

Edited by twatmangle

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At this stage the bank will not sell at a loss, if the crash gets going then maybe they will. But we are not Ireland or Dubai.

People basing their purchase prices based on how much the vendor needs - rather than what they think a house is now worth - will not help get the crash going.

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Did you not read the opening post?

That reads to me as if they paid too much.

It's a repo, doesn't mean they paid too much, or did anything wrong.

Maybe they bought very sensibly and have lost their jobs, or illness, or death etc. You have absolutely no data to make an opinion on the matter.

Just because it 'reads' to you, doesn't make it fact.

Insufficient data.

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Reposessions need to stay on the market until exchange, even if an offer has been accepted by the bank. You will at least need to beat this offer and have no chain or be sold STC if you want yours to even be considered.

This is a very good point worth reinforcing. On a repo, once your offer is accepted the house remains on sale, and indeed the Estate Agent will advertise the price you have offerred in the hope that someone will improve on it.

For the best chance of success, you need to have your finances, survey and solicitor (searches) ready to exchange in the shortest time possible. I believe it can be done in 7 working days unless anyone knows better.

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People basing their purchase prices based on how much the vendor needs - rather than what they think a house is now worth - will not help get the crash going.

Well he tried the low ball approach.

He needs to determine when the house was last selling for £79,000, this coupled with how much is owed he can decide on an offer or to move on to the next property.

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thanks - some great advice here. I was chatting to the next door neighbour when I went to view the house and was told it was a couple who'd split up - ended quite messily he told me.

The house has been 'under offer' a few times in recent months but each time has fallen through - the estate agent girl who showed me round told me this. She said finance kept being the stumbling block.

Re myself, I have the cash in the bank so not an issue (the estate agent asked for documental proof when I submitted my offer and I gave here it). I was hoping that would put me in strong position.

One more thing: checked Zoopla and couldnt find a last sold price for the house. Anywhere else I could check?

cheers

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Oh, just one more thing: houses on same street were going for 120-130 at peak (07). The house adjoining it went for 125 in 07. This makes me think (or, rather, guess) the bank is prepared to take big a hit on it and just wants shut, hence, low cash offer.

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I maybe wrong but IIRC banks reduce prices in stages, so if you go in at say £15k under asking and they're only allowing offers of £5k under then you're going to have to wait a few weeks/months for the price reduction to come along.

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  • 311 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% +
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      • Even
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      • up 5%



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