Repossessed Properties Being Sold Through Eas

[Jason]

I've noticed a lot more properties being sold as 'Repossession' in the description. Surely, these would go through auctions rather than with the EA? Has anyone else noticed this trend?

Also, what's the procedure with buying a Repossessed house via an EA. I think they have to advertise your offer so they can demonstrate that they are achieving the maximum price.. Anyone else noticed this?

Basically, there's a house I like at about 30% off compared to others. I'm seriously considering making an offer - about 10k less than the asking price... Similar priced properties are terraced, where as this is a four bed detached.

Edited October 18, 2008 by Jason

[Freeholder]

I've noticed a lot more properties being sold as 'Repossession' in the description. Surely, these would go through auctions rather than with the EA? Has anyone else noticed this trend?

Also, what's the procedure with buying a Repossessed house via an EA. I think they have to advertise your offer so they can demonstrate that they are achieving the maximum price.. Anyone else noticed this?

Basically, there's a house I like at about 30% off compared to others. I'm seriously considering making an offer - about 10k less than the asking price... Similar priced properties are terraced, where as this is a four bed detached.

The usual procedure is to offer for sale through an EA then go to auction if it fails to sell. The mortgagee in posession has to be seen to be trying to obtain the best price the market will bear, if you will pardon the phrase.

[gfromls]

I've noticed a lot more properties being sold as 'Repossession' in the description. Surely, these would go through auctions rather than with the EA? Has anyone else noticed this trend?

They’ve always gone through the EA’s initially, though I have never seen them advertised as 'Repossession'

If the EA can’t sell them, than they go to auction.

You can usually spot them, they’re usually offered with ‘no onward chain’, sometimes have the possession order stuck in the window and have ‘do not use’ stickers taped to the taps, toilet , radiators ect.

The ones I’m seeing now have ‘MEW’ wrote all over them.

[chichi]

Cheapest one on my local area search is a repo. They owe 90+ on it and it's on for 64. It's had a lot of interest in it since it was shown on the TV on North West tonight

[Liquid Goldfish]

would a particular lender use a particluar EA in one area, or do they spread them around?

[lkalka]

The usual process is : -

Put it on with an agent

Reduce it periodically e.g. 4, 8, 12 weeks

If it still doesn't sell consider putting it into auction, although the current trend is not to because of the prices being achieved.

When it does sell there has to be a public notice placed (usually in the local paper) inviting higher offers

for a period of time - say 7 days.

[Jason]

Oh, forgot to say it sold for £215k in 2005. Now on the market at £162k. Oh, and it looks like a garage was built within that time (replacing a car port).

Thanks for the replies everyone. My thinking is that the EA/vendor won't dismiss an ultra low offer because it's a repossession.

Edited October 18, 2008 by Jason

[the end is a bit nigher]

Oh, forgot to say it sold for £215k in 2005. Now on the market at £162k. Oh, and it looks like a garage was built within that time (replacing a car port).

Thanks for the replies everyone. My thinking is that the EA/vendor won't dismiss an ultra low offer because it's a repossession.

It's nothing to do with the EA unless the vendor has told them not to pass on offers under a specific level. With it eing a repo that is unlikely so I would offer what the hell you like. Start very low, i.e. around 50% and be prepared to work up slightly dependent upon how much you like it or not. With the market as dead as it is they may well take it. Until it is sold the vendor (lender) is having to pay the upkeep and council tax etc. This will be reclaimed off the property owner should there be any surplus over the mortgage after sale.

[redgenieuk]

I must admit Jason, most round me (PE11) seem to go to EAs first for a few months.

Just trying their luck I guess.

We'd certainly rather see more at auction! )

[Flopsy]

We looked at a repo. The EA put it on at a price substantially less than the inital "sold for price" in 2004. After only 2 weeks on the market the EA phoned and said that they would take "final" offers that weekend. We put in a low offer, then had the EA ringing us trying to ramp it up. It then went "under offer" on their website and the EA claimed that the full asking price was offered.

A month later it appeared as "available" on their website. The first purchaser had pulled out. We didn't make another offer. A week later it went to "under offer" on their website again. The sale appears to have gone through, although it is not yet appearing on the Govt site. The same house has now been advertised to rent.....

Edited October 18, 2008 by Flopsy

[lkalka]

Oh, forgot to say it sold for £215k in 2005. Now on the market at £162k. Oh, and it looks like a garage was built within that time (replacing a car port).

Thanks for the replies everyone. My thinking is that the EA/vendor won't dismiss an ultra low offer because it's a repossession.

IMO

The agent will have a mandate on what they can accept say 10% under the asking price.

If you offer 20% under then I believe it will be rejected.

It's a matter of holding out because like I say it will probably be reduced after a 'fixed' period - say 4 weeks then 8 weeks.

So then you could either bide your time and see if it goes to auction or offer 10% under the reduced price.

[moonriver]

Yes estate agents where I live are doing repossessions.

I notice in the local paper they list the any offers they have received, and say they need to know within 14 days if there are any others offers on them.

I check for past sold prices when I have seen them, and on average they are now selling at aprox 2003 prices.

There are 2 large newish houses near us with possession order notes in the window. They have been empty for about 7 months, and the asking price is going down and down as the months pass. And the gardens get to look more and more overgrown.

[tigsrenting]

Yes estate agents where I live are doing repossessions.

I notice in the local paper they list the any offers they have received, and say they need to know within 14 days if there are any others offers on them.

The difference is they are advertising them as repossessions. I'd never seen this until a few weeks ago. King & Chasemore were the agents. Worthing or somewhere around that way.

[Jason]

If I could get 10% off that price, I would probably buy now. Because it's such a big house (compared to my needs) I would probably offer two rooms to two of my current house mates, and what they would pay would almost pay my mortgage.

I'm just absolutely amazed how much prices have fallen in a year.

[Harry Sacks]

I've noticed a lot more properties being sold as 'Repossession' in the description. Surely, these would go through auctions rather than with the EA? Has anyone else noticed this trend?

Also, what's the procedure with buying a Repossessed house via an EA. I think they have to advertise your offer so they can demonstrate that they are achieving the maximum price.. Anyone else noticed this?

Basically, there's a house I like at about 30% off compared to others. I'm seriously considering making an offer - about 10k less than the asking price... Similar priced properties are terraced, where as this is a four bed detached.

Yep! We went to look at one. Wreck! A doer upper. The former occupants possessions, bike, furniture, utensils, etc, were included in the sale. Would make a nice house after a lifetimes worth of DIY. Not interested.

[Carabansity]

I went to see a repo home when I first came to Leeds that was up with a local EA. It had been on the market for 5 months at £22k (1996) with no interest so I waited until it went to auction a month later. That first minute when the auctioneer tried to start bidding at £20k was very tense but I held my nerve, offered £15k and stuck to my guns. 30 seconds later the house was mine. Sold it 18 months later for £32k as the market had picked up (although as this was pre-internet for me it was by luck more than judgement).

Auction is the final arbiter of worth, if a local EA with supposed local market knowledge and buyer contacts can't sell a home, what is offered at auction is what it is worth. I think as more houses go to auction the lenders will become less picky about the sale price.

[GBdamo]

AND, Its always been the case

[aussieboy]

snip

Auction is the final arbiter of worth, if a local EA with supposed local market knowledge and buyer contacts can't sell a home, what is offered at auction is what it is worth. I think as more houses go to auction the lenders will become less picky about the sale price.

Nope: auction tells what what the second most keen person was willing to pay for something, not what the most keen person was willing to pay.

Edited to add: unless it's a Dutch one.

Edited October 19, 2008 by aussieboy

[Jason]

I would happily buy at auction, however as I need a mortgage it seems very difficult. I can't really bid until I have a mortgage agreement on that house, whereas I would have to pay for this and might be out bid straight away.