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Buying A Repo - Need Some Advice


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Hi guys, I'll have been a member of this forum for 5 years next week!

How things have changed! Well I'm still a FTB but I'm finally ready to buy a place, I haven't posted much in quite a while as I've worked and worked and saved and saved and I've decided that I want to buy a cheap property for cash and be mortgage free.

I've found a property I want to buy that is in the £60,000 range, it's a repossession and it's been on the market for 2 months. On my first viewing within about 4 minutes the estate agent told me there was an offer on the property from someone who had a mortgage, their offer was slightly over the asking price. Anyway last week I viewed the property again and I'd like to place a written offer.

I need some advice though at what price you'd advise as my first offer

I've had an experience with a repossession before where the EA talked about other offers (even though there was no public notice offer on PropertyNews/PropertyPal) i.e. trying to pressure me into acting fast as "there are other offers" and then 6 months later the property still wasn't sold! There where no offers!

Similar situation with this property, there has been no public notice of offer. Now perhaps the bid just hasn't been accepted by the vendor hence no legal requirement for such notice or maybe the offer doesn't exist.

So I'm not sure what offer to begin with, I don't want to insult the seller and be out of the running with an offer below the asking price (IF) there is an actual buyer offering slightly over the asking price but then on the other side of the coin I don't want to offer more than they have offered as a first offer incase the buyer doesn't exist. The property does seem good value for money though as it's approximately 20 percent below rateable value but it does require work, I've had a surveyor hired to give me his opinion and I have a list of things that need fixed or replaced but I know the costs.

I know I'm in a strong position though, Cash buyer, FTB, no chain and can complete the exchange very fast, solicitor in place to proceed a.s.a.p

I'd appreciate your opinions guys!

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The lender has to get the best possible price, bid what you think it's worth to you.

Hi guys, I'll have been a member of this forum for 5 years next week!

How things have changed! Well I'm still a FTB but I'm finally ready to buy a place, I haven't posted much in quite a while as I've worked and worked and saved and saved and I've decided that I want to buy a cheap property for cash and be mortgage free.

I've found a property I want to buy that is in the £60,000 range, it's a repossession and it's been on the market for 2 months. On my first viewing within about 4 minutes the estate agent told me there was an offer on the property from someone who had a mortgage, their offer was slightly over the asking price. Anyway last week I viewed the property again and I'd like to place a written offer.

I need some advice though at what price you'd advise as my first offer

I've had an experience with a repossession before where the EA talked about other offers (even though there was no public notice offer on PropertyNews/PropertyPal) i.e. trying to pressure me into acting fast as "there are other offers" and then 6 months later the property still wasn't sold! There where no offers!

Similar situation with this property, there has been no public notice of offer. Now perhaps the bid just hasn't been accepted by the vendor hence no legal requirement for such notice or maybe the offer doesn't exist.

So I'm not sure what offer to begin with, I don't want to insult the seller and be out of the running with an offer below the asking price (IF) there is an actual buyer offering slightly over the asking price but then on the other side of the coin I don't want to offer more than they have offered as a first offer incase the buyer doesn't exist. The property does seem good value for money though as it's approximately 20 percent below rateable value but it does require work, I've had a surveyor hired to give me his opinion and I have a list of things that need fixed or replaced but I know the costs.

I know I'm in a strong position though, Cash buyer, FTB, no chain and can complete the exchange very fast, solicitor in place to proceed a.s.a.p

I'd appreciate your opinions guys!

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Hi guys, I'll have been a member of this forum for 5 years next week!

How things have changed! Well I'm still a FTB but I'm finally ready to buy a place, I haven't posted much in quite a while as I've worked and worked and saved and saved and I've decided that I want to buy a cheap property for cash and be mortgage free.

I've found a property I want to buy that is in the £60,000 range, it's a repossession and it's been on the market for 2 months. On my first viewing within about 4 minutes the estate agent told me there was an offer on the property from someone who had a mortgage, their offer was slightly over the asking price. Anyway last week I viewed the property again and I'd like to place a written offer.

I need some advice though at what price you'd advise as my first offer

I've had an experience with a repossession before where the EA talked about other offers (even though there was no public notice offer on PropertyNews/PropertyPal) i.e. trying to pressure me into acting fast as "there are other offers" and then 6 months later the property still wasn't sold! There where no offers!

Similar situation with this property, there has been no public notice of offer. Now perhaps the bid just hasn't been accepted by the vendor hence no legal requirement for such notice or maybe the offer doesn't exist.

So I'm not sure what offer to begin with, I don't want to insult the seller and be out of the running with an offer below the asking price (IF) there is an actual buyer offering slightly over the asking price but then on the other side of the coin I don't want to offer more than they have offered as a first offer incase the buyer doesn't exist. The property does seem good value for money though as it's approximately 20 percent below rateable value but it does require work, I've had a surveyor hired to give me his opinion and I have a list of things that need fixed or replaced but I know the costs.

I know I'm in a strong position though, Cash buyer, FTB, no chain and can complete the exchange very fast, solicitor in place to proceed a.s.a.p

I'd appreciate your opinions guys!

I don't know where to start with this as there are so many obvious inconsistencies from the EA. Firstly, you need to find out how many previous offers have been placed on the house because if the current offer is the only one and is actually above the asking price then it's a sign the agent is talking rubbish. Why? because a repossession company always ALWAYS accepts the full asking price if the buyer is in a proceedable position, ie cash buyer or mortgage in place. I've never seen anyone come in with an offer over asking price if no one is bidding against them.

A repo company doesnt give special merit to cash offers ie if you offer the same as a buyer who requires a mortgage you wont get the house agreed to you, you will be equal and the house will go to the highest offer irrespective of financial position. The EA however will want a quick sale so they should be taking you seriously and not playing silly games.

The public notice does not have to appear on PPal, PNews etc but it has to appear in print in a local newspaper. It could have appeared a week or 2 ago without you seeing it if the current offer is genuine. Don't assume that the EA is making up the offer because the public notice is not on propertypal, most of our repos dont display the notice on ppal as we aren't asked to do it by the repo companies. Ask the EA if a public notice has run yet in the paper and if you find it you will know the offer is genuine. If no notice has run then there is probably no offer above asking price as I already explained that a full asking price offer would have been accepted by now.

Speak to the agent with the above knowledge in your head and let us know the outcome.

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The lender has to get the best possible price, bid what you think it's worth to you.

It's worth the least I can pay for it :) The less I can pay, the more I can spend on updating it

I don't know where to start with this as there are so many obvious inconsistencies from the EA. Firstly, you need to find out how many previous offers have been placed on the house because if the current offer is the only one and is actually above the asking price then it's a sign the agent is talking rubbish. Why? because a repossession company always ALWAYS accepts the full asking price if the buyer is in a proceedable position, ie cash buyer or mortgage in place. I've never seen anyone come in with an offer over asking price if no one is bidding against them.

A repo company doesnt give special merit to cash offers ie if you offer the same as a buyer who requires a mortgage you wont get the house agreed to you, you will be equal and the house will go to the highest offer irrespective of financial position. The EA however will want a quick sale so they should be taking you seriously and not playing silly games.

The public notice does not have to appear on PPal, PNews etc but it has to appear in print in a local newspaper. It could have appeared a week or 2 ago without you seeing it if the current offer is genuine. Don't assume that the EA is making up the offer because the public notice is not on propertypal, most of our repos dont display the notice on ppal as we aren't asked to do it by the repo companies. Ask the EA if a public notice has run yet in the paper and if you find it you will know the offer is genuine. If no notice has run then there is probably no offer above asking price as I already explained that a full asking price offer would have been accepted by now.

Speak to the agent with the above knowledge in your head and let us know the outcome.

Thanks for the advice Realistic NI EA, can I ask. If I find out there has been no offers on the property, would it be fair enough to offer 10% under the asking price or should I just offer the full asking price looking for a quick sale?

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It's worth the least I can pay for it :) The less I can pay, the more I can spend on updating it

Thanks for the advice Realistic NI EA, can I ask. If I find out there has been no offers on the property, would it be fair enough to offer 10% under the asking price or should I just offer the full asking price looking for a quick sale?

Offering full asking price will get the sale agreed if there are no other offers but why pay full asking price when you may get it cheaper. It seems this EA is playing you so that he gets over asking price which may earn him a higher commission if the fee is on a performance basis that some repo companies work on. I wouldn't let that stop you offering 10% under asking price to start with. A repo company won't hold it against you or get offended like a private vendor so go in low to start with.

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Offering full asking price will get the sale agreed if there are no other offers but why pay full asking price when you may get it cheaper. It seems this EA is playing you so that he gets over asking price which may earn him a higher commission if the fee is on a performance basis that some repo companies work on. I wouldn't let that stop you offering 10% under asking price to start with. A repo company won't hold it against you or get offended like a private vendor so go in low to start with.

Thanks again for your advice, I really appreciate it!

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The difficulties when buying a repo mean you should be offering a lot less than their asking price. From my own experience AEs are liars and there isn't another offer, they are just pre-empting you offering a lower price. The repo agent will try and get you to complete in an impossible timescale and at no time until you do will they stop taking offers from other people. So be prepared to lose whatever you have to put up front to secure mortgage etc..

Check how long the property has been on the market - almost all interest is expressed in the frist two weeks so if it has been on for 6 months then it is going to be around for at least another month or two since nobody is going to manage to complete in a hurry.

Ask the agent if they actually have any offers the repo agent has accepted and that a would be buyer is pressing ahead with. If not, then assume all offers the EA alludes to are fictional. N.B. a repo agent accepting an offer is not the same as a normal acceptance of an offer, they will accept any offer that is more advantageous right up to the wire.

Having established as well as you can what the state of play is, put in a low offer. I bid 30k off a 210k asking price which upset the AE and was rejected. Eventually we ended up at 193k which could have been lower were it not for my partner's lower tolerence of risk and stress than mine.

The choice is yours but go into it with your eyes and ears open. Repo's do not get published on the land registry. The BTL who lost the house had, according to local knowledge some 50 properties when they were declared bankrupt. If they were all in the same area that is some distortion to the real house price figures around here.

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The repo agent will try and get you to complete in an impossible timescale and at no time until you do will they stop taking offers from other people. So be prepared to lose whatever you have to put up front to secure mortgage etc..

What sort of time frame are we talking about? 4 weeks for a mortgage offer, 2 weeks for a cash offer or are we talking sooner?

The choice is yours but go into it with your eyes and ears open. Repo's do not get published on the land registry. The BTL who lost the house had, according to local knowledge some 50 properties when they were declared bankrupt. If they were all in the same area that is some distortion to the real house price figures around here.

Apologises for my ignorance Travisher but what does that mean, repo's do not get published on the land registry?

It's amazing how many normal people where involved in BTL, anyone I've spoken to from Taxi drivers to anyone in the building trade was involved in it. Crazy stuff!

Thanks for your advice Travisher!

I'm going to write some of these points down to ask the EA before I make an offer

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YoungFTB read tinbin's post about buying a repo. Very enlightening

http://www.housepricecrash.co.uk/forum/index.php?showtopic=182010&view=findpost&p=909117973

Thanks DD!

Does anyone know if EAs can legally post a Public Notice offer for a repo if there isn't a buyer? Similar to claiming there is a buyer when there really isn't?

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Thanks DD!

Does anyone know if EAs can legally post a Public Notice offer for a repo if there isn't a buyer? Similar to claiming there is a buyer when there really isn't?

I don't know about the legalities of it but it doesn't make much sense if they did. Why would they spend money running a public notice in the paper when they had no offers on the property? I don't think it's going to make the general public rush into making offers on the property if it has been on the market for a while with no previous offers on it.

To answer your question on another thread, each new buyer has 28 days to exchange contracts so if someone outbids you, they become the new buyer and the clock is reset so to speak.

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To answer your question on another thread, each new buyer has 28 days to exchange contracts so if someone outbids you, they become the new buyer and the clock is reset so to speak.

Thanks again, so effectively every new bid results in a new 28 days to exchange contract?

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I don't know about the legalities of it but it doesn't make much sense if they did. Why would they spend money running a public notice in the paper when they had no offers on the property? I don't think it's going to make the general public rush into making offers on the property if it has been on the market for a while with no previous offers on it.

In the case of it being published on Property Pal Or Property News it wouldn't cost them anything to do so, so I thought I'd asl

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  • 439 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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