Repossesed homes and making offers? how silly to make them!
Discussion
ive seen a house I want,
estate agents have it up for £140k. after speaking with the agent, one offer has been made but rejected, I dont know how long ago the offer was made or the amount that was offered.
I have spoken with the neighbour to the property for sale and he says its been on the market for a year.
the agent says they will listen to offers above £125k.
do I start at £125k or go in with a silly offer of £115k/£120k.
if they havent had an offer on the property for months are they likely to consider my offer/accept it, even if it means they make a loss on the property or do they have to keep rejecting my offer until they clear the amount owed on the mortgage by the previous keeper.
any advice is really appreciated.
I have a 10% deposit and my mortgage advisor says getting me mortage for a house value at 130k is not a problem so I am proceedable.
estate agents have it up for £140k. after speaking with the agent, one offer has been made but rejected, I dont know how long ago the offer was made or the amount that was offered.
I have spoken with the neighbour to the property for sale and he says its been on the market for a year.
the agent says they will listen to offers above £125k.
do I start at £125k or go in with a silly offer of £115k/£120k.
if they havent had an offer on the property for months are they likely to consider my offer/accept it, even if it means they make a loss on the property or do they have to keep rejecting my offer until they clear the amount owed on the mortgage by the previous keeper.
any advice is really appreciated.
I have a 10% deposit and my mortgage advisor says getting me mortage for a house value at 130k is not a problem so I am proceedable.
Edited by plumAJP on Monday 6th July 15:21
Jees, not again.
How much is the house 'worth'. This is the basis of your offer, not whats the asking price is.
If you feel 125k is fair then put this forward, if however you feel 125k is not fair but 115k then put 115k forward. Forget what the estate agent says.
The only thing to consider though is that the bank who have repossessed the home may have set the estate agent a figure they won't sell it for less than. Odd I know, but his is the case & they will simply market it for a while then stick it in auction (during which is goes for normally less than the offer which they wouldn't consider) !!!
We offered 295k on a house a couple of years ago (we knew the owner). It was rejected, but later went for 230k in auction ??? It was being advertised for offers around 350k.
How much is the house 'worth'. This is the basis of your offer, not whats the asking price is.
If you feel 125k is fair then put this forward, if however you feel 125k is not fair but 115k then put 115k forward. Forget what the estate agent says.
The only thing to consider though is that the bank who have repossessed the home may have set the estate agent a figure they won't sell it for less than. Odd I know, but his is the case & they will simply market it for a while then stick it in auction (during which is goes for normally less than the offer which they wouldn't consider) !!!
We offered 295k on a house a couple of years ago (we knew the owner). It was rejected, but later went for 230k in auction ??? It was being advertised for offers around 350k.
plumAJP said:
estate agent said they had offers higher than what i was offering
Call me cynical, but that might just be the agent trying to get you to up your offer, as a higher price means more commission. Offer what you'd be happy paying for it (in writing) and let them stew on it for a while.
the EA said the repo company would listen to offers over 125k and reject those below it.
i offered 115k the EA said no they have had higher which was refused, i then offered 120k they said they had higher than that. i offered £122.5 and they said they had higher, so i said look i want you to offer £125k to the repo company and he said that beats the other 2 offfers they have had and they will put it forward.
i felt like the EA was pushing me to up my offer so their commision was bigger. he was probably bull s
tting me about the other offers.
i willing to pay £130k for the property but i want it as cheap as possible.
the EA did not put any of my earlier offers to the repo co. they are only putting the 125k offer forward.
i offered 115k the EA said no they have had higher which was refused, i then offered 120k they said they had higher than that. i offered £122.5 and they said they had higher, so i said look i want you to offer £125k to the repo company and he said that beats the other 2 offfers they have had and they will put it forward.
i felt like the EA was pushing me to up my offer so their commision was bigger. he was probably bull s
tting me about the other offers.i willing to pay £130k for the property but i want it as cheap as possible.
the EA did not put any of my earlier offers to the repo co. they are only putting the 125k offer forward.
I bought a repro in February - i think the market has picked up a bit since.
My house was on for 110k. They had already recieved a few offers but people could not get a mortgage for the house once the offer had been accepted (even with a mortgage in principal!!).
I offered 70k which was refused.
I then offered 73k and promised them a completion in 14 days.
They accepted and im now on the propety ladder at last.
My house was on for 110k. They had already recieved a few offers but people could not get a mortgage for the house once the offer had been accepted (even with a mortgage in principal!!).
I offered 70k which was refused.
I then offered 73k and promised them a completion in 14 days.
They accepted and im now on the propety ladder at last.
plumAJP said:
the EA said the repo company would listen to offers over 125k and reject those below it.
i offered 115k the EA said no they have had higher which was refused, i then offered 120k they said they had higher than that. i offered £122.5 and they said they had higher, so i said look i want you to offer £125k to the repo company and he said that beats the other 2 offfers they have had and they will put it forward.
i felt like the EA was pushing me to up my offer so their commision was bigger. he was probably bull stting me about the other offers.
i willing to pay £130k for the property but i want it as cheap as possible.
the EA did not put any of my earlier offers to the repo co. they are only putting the 125k offer forward.
Wait for the mortgage valuation. If it comes in below your offer price, use that as a bargaining tool to chip a bit more off the price. If yours is then the only proceedable offer, and they can see that house prices are starting to dip again, you will have the whip hand. i offered 115k the EA said no they have had higher which was refused, i then offered 120k they said they had higher than that. i offered £122.5 and they said they had higher, so i said look i want you to offer £125k to the repo company and he said that beats the other 2 offfers they have had and they will put it forward.
i felt like the EA was pushing me to up my offer so their commision was bigger. he was probably bull s
tting me about the other offers.i willing to pay £130k for the property but i want it as cheap as possible.
the EA did not put any of my earlier offers to the repo co. they are only putting the 125k offer forward.
With a repo they have to publish your offer before exchanging contracts, so if it's too low there maybe competition...
Also the commission difference for the EA between £120,000 and £125,000 will be small, so i'm sure he would rather sell it for £120,000 and make something than have you pull out and lose it over £50 comm. (1% of 5000 difference is £50)
Also the commission difference for the EA between £120,000 and £125,000 will be small, so i'm sure he would rather sell it for £120,000 and make something than have you pull out and lose it over £50 comm. (1% of 5000 difference is £50)
My 1 and only, but current, experience with repo is that they market at a very keen price to get the footfall and the offers coming in. It then turns into a dutch auction. I offered 335 on a 350 marketing price. Best and final offers was last week and the day after I made my offer the other offers were apparently topping 400. Seems crazy to me for a place that was sold in 2005 for 425 and still needs a fair amount of work to make fit again.
edc said:
My 1 and only, but current, experience with repo is that they market at a very keen price to get the footfall and the offers coming in. It then turns into a dutch auction. I offered 335 on a 350 marketing price. Best and final offers was last week and the day after I made my offer the other offers were apparently topping 400. Seems crazy to me for a place that was sold in 2005 for 425 and still needs a fair amount of work to make fit again.
The only I looked at was listed at £180k, said they had an offer at 183k, I offered 184,500 and didn't get it. Needed new heating system, probably rewiring (looked like a dodgy DIY job), also the radiators looked like they had been leaking so who knows what might have been there!Best offer isn't necessarily highest offer. They will obviously have to do their checks on how well financed the bidders are and what the chains look like. Most of the houses I have viewed in the past month have had offers fall through because the buyer can't raise the finance. if it's not that then the vendor has been doing some 'asset collection', under 'financial pressure' etc etc and they either can't afford to sell and pay off mortgage/redemption or then push their asking price up for others to bail them out.
I bought my present house as a repo when the market was still a bit silly. The asking price was dramatically lower than it's market value (thankfully the previous owner had left the place in a bit of a state so it looked unappealing) I made my offer which was 15% under the asking price and the estate agent said it would be rejected. After a small amount of shall we say heated discussion with the agent I got them to forward the offer to the building society that was selling it. My offer was in writing and included the time frame I could move within, my position financially and a date that the offer would be valid till.
After a week the offer was accepted but the property details had to be published locally to ensure no one else was interested and to prevent agents just flogging it to a friend cheap for a backhander. Once that was done I was informed that I had been successful. Apparently there were higher offers but they were just offers with no extra information to back the offer up so they went with mine.
It can be done but you have to be prepared to lose the property. I set a target of 10% below the asking price and if it was unachievable I would have walked away.
After a week the offer was accepted but the property details had to be published locally to ensure no one else was interested and to prevent agents just flogging it to a friend cheap for a backhander. Once that was done I was informed that I had been successful. Apparently there were higher offers but they were just offers with no extra information to back the offer up so they went with mine.
It can be done but you have to be prepared to lose the property. I set a target of 10% below the asking price and if it was unachievable I would have walked away.
ive made my offer of 125k, the EA have put that forward to the repo company but they have referred the offer for approval as "its below the price" they asked for. (even though a friend in the EA told me that they would look at offers over 125k)
I am getting an aswer from my mortgage lender tomorrow whether they will give me a mortgage.
Should I (once the mortgage is confirmed) put my offer in writting stating that I have 10% deposit and the mortgage is fully agreed and I can complete withing 21 days etc.
Would that put a bit of weight on them to accept the offer as i can complete quickly and am proceedable etc
I am getting an aswer from my mortgage lender tomorrow whether they will give me a mortgage.
Should I (once the mortgage is confirmed) put my offer in writting stating that I have 10% deposit and the mortgage is fully agreed and I can complete withing 21 days etc.
Would that put a bit of weight on them to accept the offer as i can complete quickly and am proceedable etc
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