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Buying A Repo .. Help

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hi guys in need of some help as i am trying to buy a repo and should be getting a decent discount if all works out

i was told that if my offer is accepted then i will be expected to complete within 28 days but i was wondering does the seller (asset management company) have to complete within the same time or can they drag there heels for a better offer after i have laid out expenses??

secondly, the house has to be in the local paper with any accepted offer for 7 days in hope of a better offer.... i dont want to get involved in a bidding war so should i wait until the house has been in the paper for 7 days for someone to out bid me before i pay for survey and conveyancing as m thinking is that i am most likely to be outbid within those seven days although i am aware i can be outbid until completion..???

thirdly how long does conveyencing take... how close to the end of the 28 day period can i leave it to start

fourth... will the company complete immediately after the 7 day notice if i show i am ready or will they hold out until the 28th day

thanks guys

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I think the conveyencing / mortgage valuation / drive by valuation will need to be completed asap as it may take a few weeks for the bank to issue the funds. Delaying it by 7 days may cause you to go over the 28 days, having said that the valuation fee isn't much is it? A couple hundred quid?

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I think the conveyencing / mortgage valuation / drive by valuation will need to be completed asap as it may take a few weeks for the bank to issue the funds. Delaying it by 7 days may cause you to go over the 28 days, having said that the valuation fee isn't much is it? A couple hundred quid?

yeah a couple of hundred for valuation but conveyancing gets quit expensive.. how long does that typically take?

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I have bought 2 repos in the past ,so can only tell of my experience.

The seller may drag their heels but they will be aware that they risk losing you as a buyer

In both my purchases, the property had to be advertised, this is a bit of a grey area as some EA's will advertise in a local low circulation paper, but others may use several. They may also call your bluff and tell you that there is a higher offer. All I can say is be bold and tell them you will not enter a contract race and if they are going to take this stand threaten to go elsewhere.

Also I have called several EA's after seeing a "To Whom it may concern" advert. Some try to put you off by saying that the pending sale is well advanced, so unless you can complete within 7 days, the sale will complete. Others will willingly use you to try to push up the offer.

Conveyancing time depends how good the solicitors are. I have bought at auction and had 14 days to complete (which included a 4 day Easter Bank holiday) so it can be done quickly. From my experience the company handling the repo may not be a bank, and their legal departments can be slow as they are dealing with so many cases.

I am sure if you are ready to complete at an earlier date, the company may complete earlier if it suits them

As for paying out money before exchange, my solicitor does not charge for work done if the sale falls through. On my last house I purchased as a repo. My offer was accepted, then when my solicitor carried out the searches, it came to light that work on an extension which had been granted planning, was never certificated by the building inspector. I used this a further bargaining power and knocked another 10K off my offer. The company realised that any other buyer would probably face the same problem, so it was better to accept my offer rather than start from scratch again

Good luck and keep us all posted

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yeah a couple of hundred for valuation but conveyancing gets quit expensive.. how long does that typically take?

Typically? A couple of months is regarded as quite short. But the searches are probably the longest bit - a couple of weeks. I suspect everything else could be done in a matter of days.

Line up your conveyancer now. They'll want to do ID checks etc. Personally, I'd be tempted to use someone local so you can hassle them in person if things are going slow.

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Typically? A couple of months is regarded as quite short. But the searches are probably the longest bit - a couple of weeks. I suspect everything else could be done in a matter of days.

Line up your conveyancer now. They'll want to do ID checks etc. Personally, I'd be tempted to use someone local so you can hassle them in person if things are going slow.

ok so my offer of 112,500 was rejected

house is currently priced at 127,500

sold in december 2008 new for 165,000

same house on same street but built in march 2007 sold for 200,000

should i just hold tight for a week and see what happens?

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ok so my offer of 112,500 was rejected

house is currently priced at 127,500

sold in december 2008 new for 165,000

same house on same street but built in march 2007 sold for 200,000

should i just hold tight for a week and see what happens?

Generally, repos or 'corporate sales' as they like to call them are less privvy to the game of cat and mouse that a usual sale is. As agents typically only receive a flat fee from selling a repo, there's little to incentivise any horseplay, a sale is all they want.

The fact that your offer was refused was probably because it falls under what the property management group need to pay off the debt (within reason - the bank who repos someone with a 110% charge in 2007 wouldnt expect to balance the books).

A repo sale through an agent means they need to have demonstrated attempt to achieve a reasonable market value (very subjective). If you're the only bidder, you are the market and so it would be deemed fair. In this instance they obviously think it can achieve better. Only time will tell on that though.

At the moment you're likely bidding against yourself, so if it were me I'd stick to my guns - say the offers on the table for a week. Only do this if you're prepared to walk, as if you try to negotiate after a week they'll call your bluff and probably start doing what I said they wouldn't - play cat and mouse. Remember, 99% of EA's are predatory liars and they get alot of practice - their poker face is most likely better than yours.

Edited by thombleached

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thanks for the advice.. ill stick to my guns for now as im in no rush, hopefully they will pester me to up the offer ...

what i found strange was that when i did a zoopla valuation it has this house at 156,000 and the same house 5 doors away at 175,000 the only difference between the houses is that the latter sold at the peak and for 35,000 more..... makes zoopla's estimates look very shady... and as if they are based on past sale prices

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well, like i said previously my offer of 112500 was rejected on tuesday (price 127500) and today the price of the property dropped again to 120,000 on rightmove

do i now play ball and move my bid up to 114000

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well, like i said previously my offer of 112500 was rejected on tuesday (price 127500) and today the price of the property dropped again to 120,000 on rightmove

do i now play ball and move my bid up to 114000

If you increase your offer, they could just refuse every offer telling you that you need to increase it to 120k. They'll say that 120k is the "meeting you in the middle" price and they won't go lower.

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  • 246 Brexit, House prices and Summer 2020

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