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Gazzumping On Reposessions


stooboy
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Hello,

I have come across a property in Scotland that im thinking very cautiously on putting in an offer on due to the fact that it has been repossessed.

Reading general forums it seems that at any point you can be gazzumped, as the bank is legally obliged to get the best price for the property and as such even after we put in an offer it can be taken away even if its a mere 1k more.

Is this the case in Scotland? one forum article from 2008 said this is not the case in Scotland.. http://forums.moneysavingexpert.com/showthread.php?t=3842617

In this scenario the house has had some damage done by previous owners in that the electrical sockets, telephone etc have been damaged, and fridge/freezer left with rotten fish heads in that no one has appeared to remove.

Is there leway in offering 10 or 20k less than the offers over price?

Thanks for any replies

Stoo.

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Hello,

I have come across a property in Scotland that im thinking very cautiously on putting in an offer on due to the fact that it has been repossessed.

Reading general forums it seems that at any point you can be gazzumped, as the bank is legally obliged to get the best price for the property and as such even after we put in an offer it can be taken away even if its a mere 1k more.

Is this the case in Scotland? one forum article from 2008 said this is not the case in Scotland.. http://forums.moneysavingexpert.com/showthread.php?t=3842617

In this scenario the house has had some damage done by previous owners in that the electrical sockets, telephone etc have been damaged, and fridge/freezer left with rotten fish heads in that no one has appeared to remove.

Is there leway in offering 10 or 20k less than the offers over price?

Thanks for any replies

Stoo.

I believe it always used to be the case that verbal offers alone were binding in Scots Law so gazumping couldn't happen. Since the crash of 2007 I think the rule book has been torn up.

How long has it been on the market?

How quickly can you complete?

Do you have a copy of the Home Report valuation (treat it with caution but do compare it to the o/o).

If you make an offer, make one of the conditions you want if withdrawn from the market.

You seem to think you are more likely to be gazumped because it's a repossession. Why? I'm sure the bank wants it off their books - any shortfall will have to be made up by the former mortagee. The best price for a property is the one the seller can get now - because it sure ain't going up in the future!

Good luck

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Thanks for the reply,

Perhaps I am assuming to much in being gazzumped from reading all posts from 08 etc where people said they where gazzumped while waiting on solictiors etc., and there is a 28day completion window... ?

This property seems to me to have a strange extension that joins the neighbours extension, as well as a dodgy drive that appears to "illegally" access a main road, in that the kerb is not dropped, i.e. they knocked the wall down and put some gravel down, so im anticipating some legal work, hence the cause for concern in entering into that with a solicitor and possibly be gazzumped.

It went on the market early december (2012) and according to property bee has dropped 25k in small 5k and 10k increments since then, at which point its value let it appear in my search criteria.

When i viewed it on Sat EA made a big hoo haa about taking down peoples names for "security" purposes, and on the list dating back to December only 6 names where there. It was an open day to drum up interest as it was being taken off the market at the end of the week, either to another EA or auction.

The original sale was 2007 (peak i believe) and it seems they where initially trying to attain that price, although I see on zoopla sold prices that other similar properties which might not need TLC but also may not have an extension sold for 20k under current offers over price.

The home report didn't say to much other than the things that where obvious with the damage, although the loft ladders had been damaged so I could not see the attic, apparently there was some dampness up there under the boiler, which makes me think this might have been damaged, im planning to arrange another viewing take a ladder with me and have a much better poke around.

having said that the home report said the extension was circa 2006 which means it must have been legal when it was bought in 2007... Does the home report verify if all planning permission etc was obtained or just if its structurally sound ?

The background reading on buying a repo shows that you can get creditors at your door looking for the old owner etc,. Is it worth the hassle, I think its worth a punt....

Thanks Again :)

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