Repossessed flat for sale..
Discussion
Tis called gazumping..
and it happens a lot.
Although I must admit, not sure of the way it all works in terms of a company in chaarge of it all, they may prefer other buyers conditions too, so if they are on paper a better prospect in terms of funding, chain etc, they may still opt for them.
But the fact they are still doing viewings on it would suggest they may look at other offers..
and it happens a lot.
Although I must admit, not sure of the way it all works in terms of a company in chaarge of it all, they may prefer other buyers conditions too, so if they are on paper a better prospect in terms of funding, chain etc, they may still opt for them.
But the fact they are still doing viewings on it would suggest they may look at other offers..
Edited by okgo on Thursday 3rd September 09:30
okgo said:
Tis called gazumping..
and it happens a lot.
Although I must admit, not sure of the way it all works in terms of a company in chaarge of it all, they may prefer other buyers conditions too, so if they are on paper a better prospect in terms of funding, chain etc, they may still opt for them.
But the fact they are still doing viewings on it would suggest they may look at other offers..
I'm in a pretty good position to buy, 80-85% ltv and a cash buyer. No other place to sell or anything like that. and it happens a lot.
Although I must admit, not sure of the way it all works in terms of a company in chaarge of it all, they may prefer other buyers conditions too, so if they are on paper a better prospect in terms of funding, chain etc, they may still opt for them.
But the fact they are still doing viewings on it would suggest they may look at other offers..
Edited by okgo on Thursday 3rd September 09:30
Also the estate agent said that due to the nature of repossessed properties they have to keep them on the market until it's sold.
So that must be for a reason.
Any ideas on how to make sure I don't get gazump'd? What can I do other than move ahead as fast as possible.
This place has only been on the market for 2 weeks, it's a great deal.
Edited by Frankeh on Thursday 3rd September 09:48
touching cloth said:
Nothing is set in stone until contracts exchanged, if they are still taking viewings then it sounds very much like they are open to other offers. Nothing to lose but your time after all so worth a go.
Yeah, true that. It's annoying that the EA wont tell me what the others offered. It's almost like a sealed bid, but not.
All they would say is that it's under the asking price (Which is already 20% under the areas prices)..
I wonder if I slip the EA a 50 he'll tell me haha.
Frankeh said:
touching cloth said:
Nothing is set in stone until contracts exchanged, if they are still taking viewings then it sounds very much like they are open to other offers. Nothing to lose but your time after all so worth a go.
Yeah, true that. It's annoying that the EA wont tell me what the others offered. It's almost like a sealed bid, but not.
All they would say is that it's under the asking price (Which is already 20% under the areas prices)..
I wonder if I slip the EA a 50 he'll tell me haha.
If the property is a repo then the rulkes are all different.
The seller has an obligation to achieve the maximum amount possible for the property to reduce the liability to the mortgagee. The offers must also be published in the lcoal papers, and a date set for further offers.
If you are willing to offer higher than the current offer it must be viewed on it's own merits, and if better (higher with funds) than the existing accepted.
I am currently helping a chap whose flat was sold for less than the offers that the agent had recieved, and the the selling agent (not estate agent but mortgage company agent) is being investigated.
The seller has an obligation to achieve the maximum amount possible for the property to reduce the liability to the mortgagee. The offers must also be published in the lcoal papers, and a date set for further offers.
If you are willing to offer higher than the current offer it must be viewed on it's own merits, and if better (higher with funds) than the existing accepted.
I am currently helping a chap whose flat was sold for less than the offers that the agent had recieved, and the the selling agent (not estate agent but mortgage company agent) is being investigated.
Simond001 said:
If the property is a repo then the rulkes are all different.
The seller has an obligation to achieve the maximum amount possible for the property to reduce the liability to the mortgagee. The offers must also be published in the lcoal papers, and a date set for further offers.
If you are willing to offer higher than the current offer it must be viewed on it's own merits, and if better (higher with funds) than the existing accepted.
I am currently helping a chap whose flat was sold for less than the offers that the agent had recieved, and the the selling agent (not estate agent but mortgage company agent) is being investigated.
Right I see. Very interesting. The seller has an obligation to achieve the maximum amount possible for the property to reduce the liability to the mortgagee. The offers must also be published in the lcoal papers, and a date set for further offers.
If you are willing to offer higher than the current offer it must be viewed on it's own merits, and if better (higher with funds) than the existing accepted.
I am currently helping a chap whose flat was sold for less than the offers that the agent had recieved, and the the selling agent (not estate agent but mortgage company agent) is being investigated.
I think what i'll do is go view it on Saturday, then if I like it i'll make an offer and talk to the fox and sons FA the same day. That will show them that I have the funds available and have no problem getting a mortgage.
And you never know, the (Non independent iirc) FA might find me a good mortgage deal.
I'm just going to try and make myself out to be the mother of all buyers.
I'm guessing being able to move sharpish is a good quality to have too, right?
My house was a repossession and once my offer was accepted the details had to be published in the local paper inviting other bidders for two weeks. Wasn't a problem for me as my offer included a covering letter stating my financial position, my aip for the mortgage and my circumstances ie ready to move no chain and solicitors already waiting to be instructed.
There was an offer higher than mine but they hadn't given the agent any further information so the lender who had repossessed the house went with my offer as I was in a stronger position.
Just put your offer in and make sure all the extra information is included but be aware once they have accepted your offer you may only have a maximum of 28 days to complete including any surveys etc so you need to have everything ready to go and pursue each and every detail till it's done.
There was an offer higher than mine but they hadn't given the agent any further information so the lender who had repossessed the house went with my offer as I was in a stronger position.
Just put your offer in and make sure all the extra information is included but be aware once they have accepted your offer you may only have a maximum of 28 days to complete including any surveys etc so you need to have everything ready to go and pursue each and every detail till it's done.
wolf1 said:
My house was a repossession and once my offer was accepted the details had to be published in the local paper inviting other bidders for two weeks. Wasn't a problem for me as my offer included a covering letter stating my financial position, my aip for the mortgage and my circumstances ie ready to move no chain and solicitors already waiting to be instructed.
There was an offer higher than mine but they hadn't given the agent any further information so the lender who had repossessed the house went with my offer as I was in a stronger position.
Just put your offer in and make sure all the extra information is included but be aware once they have accepted your offer you may only have a maximum of 28 days to complete including any surveys etc so you need to have everything ready to go and pursue each and every detail till it's done.
Cheers man. That's really useful.There was an offer higher than mine but they hadn't given the agent any further information so the lender who had repossessed the house went with my offer as I was in a stronger position.
Just put your offer in and make sure all the extra information is included but be aware once they have accepted your offer you may only have a maximum of 28 days to complete including any surveys etc so you need to have everything ready to go and pursue each and every detail till it's done.
However it contradicts what the EA told me, that they can't tell me the accepted price.
Is that the standard for repos? Could these people do it differently?
Hi Frankeh,
I may be wrong as it is a while since I studied the intricacies of the relevant legislation but you may find the Estate Agent may be unwilling to tell you the exact offer they have received out of either a misunderstanding of the law or a misunderstanding of the nature of the contract he has with the selling agent (presumably a financial institution) or perhaps a misplaced loyalty to the protection of privacy of the party that has made the offer. More than likely is that it is a mixture of the above. Please bear in mind that EAs are very often asked "how much did that ine in the window go under offer for?" which can be a very delicate question to answer if legal proceedings are continuing for reasons it would be too boring to list in full here. As such many EAs try not to be sucked into discussions about "how much would I need to offer to upset the applecart?" even in situations such as yours.
The EA will more than likely have to make public the original offer at a later date, but remember that by the time this figure becomes public (10 days or thereabouts to get in the local paper, perhaps) the current purchase could be quite a long way down the line and thus the selling agent may think to themselves they're better off sticking with the bird in the hand rather than waiting for a potentially more lucrative bird in the bush.
If you're really very interested then hurry up and show interest and ensure that your bid, if you decide to go ahead, is supported by as much evidence as possible and if accepted make sure you keep your foot on the pedal. Don't forget you are advocating gazumping a provisionally accepted bid and would be liable to a similar action being made against you.
As an aside Reposession sales aren't much fun for EAs, the fee is usually low (typically 1%), the selling agent is often represented by an administrator based often hundreds of miles away with next to no understanding of the marketing or sales practices involved, or the local area or local issues that might affect the pricing or marketability of the house involved, usually with a workload meaning they are rarely available or slow to respond to contact. The property itself is usually in a poor condition (ie not a very nice place to spend an hour or so showing potential buyers around). Bear in mind reposession properties are often priced competitively and as such lots of viewers would like to be shown the property, often inconveniently to the EA (ie Mr and Mrs Brown want to see it at 9am, Mr Jones at 1pm and Mr Patel at 7pm), most of whom ultimately are shocked to discover the property is exactly as the EA explained over the phone (ie in a poor condition) and thus not suitable. Remember the EA will be under pressure contractually to continue to market the property even after a suitable party has been found who is proceeding with the purchase. I'm not looking for tears here, merely trying to explain that Estate Agency is as much a person business as it is a financial or legal business and so it will be beneficial to you try make frineds with the EA rather than irritate them.
Best of luck.
I may be wrong as it is a while since I studied the intricacies of the relevant legislation but you may find the Estate Agent may be unwilling to tell you the exact offer they have received out of either a misunderstanding of the law or a misunderstanding of the nature of the contract he has with the selling agent (presumably a financial institution) or perhaps a misplaced loyalty to the protection of privacy of the party that has made the offer. More than likely is that it is a mixture of the above. Please bear in mind that EAs are very often asked "how much did that ine in the window go under offer for?" which can be a very delicate question to answer if legal proceedings are continuing for reasons it would be too boring to list in full here. As such many EAs try not to be sucked into discussions about "how much would I need to offer to upset the applecart?" even in situations such as yours.
The EA will more than likely have to make public the original offer at a later date, but remember that by the time this figure becomes public (10 days or thereabouts to get in the local paper, perhaps) the current purchase could be quite a long way down the line and thus the selling agent may think to themselves they're better off sticking with the bird in the hand rather than waiting for a potentially more lucrative bird in the bush.
If you're really very interested then hurry up and show interest and ensure that your bid, if you decide to go ahead, is supported by as much evidence as possible and if accepted make sure you keep your foot on the pedal. Don't forget you are advocating gazumping a provisionally accepted bid and would be liable to a similar action being made against you.
As an aside Reposession sales aren't much fun for EAs, the fee is usually low (typically 1%), the selling agent is often represented by an administrator based often hundreds of miles away with next to no understanding of the marketing or sales practices involved, or the local area or local issues that might affect the pricing or marketability of the house involved, usually with a workload meaning they are rarely available or slow to respond to contact. The property itself is usually in a poor condition (ie not a very nice place to spend an hour or so showing potential buyers around). Bear in mind reposession properties are often priced competitively and as such lots of viewers would like to be shown the property, often inconveniently to the EA (ie Mr and Mrs Brown want to see it at 9am, Mr Jones at 1pm and Mr Patel at 7pm), most of whom ultimately are shocked to discover the property is exactly as the EA explained over the phone (ie in a poor condition) and thus not suitable. Remember the EA will be under pressure contractually to continue to market the property even after a suitable party has been found who is proceeding with the purchase. I'm not looking for tears here, merely trying to explain that Estate Agency is as much a person business as it is a financial or legal business and so it will be beneficial to you try make frineds with the EA rather than irritate them.
Best of luck.
Great post, thank you very much.
Luckily for me it's actually in pretty good nick. New kitchen, newish bathroom, GCH, etc. Best of all the lease was extended in 2004.
It's seemingly very good. I could see it being worth 25% more in 4-5 years (by which time I would have paid about 40% of the mortgage off anyway. Lol).
I will be ready to put in my offer on saturday as time seems to be the main factor.
Thanks for all your replies.
Luckily for me it's actually in pretty good nick. New kitchen, newish bathroom, GCH, etc. Best of all the lease was extended in 2004.
It's seemingly very good. I could see it being worth 25% more in 4-5 years (by which time I would have paid about 40% of the mortgage off anyway. Lol).
I will be ready to put in my offer on saturday as time seems to be the main factor.
Thanks for all your replies.
Depending on the Asset Management Company (AMC)the sale of a repo normal goes like this:
Property on market, normally cheaper than anything else in the area
Offers are made and passed on to the AMC
Once an offer is at an acceptable level the AMC will have either wanted to see proof of funds or be happy that the Agent has.
Again, depending on which company has taken in the repo they will either be happy with a Public Notice in the local paper or as seems to be happening more and more, placed in the main text of the selling agents advert on Rightmove.
Once the 7 days (normally) have expired solicitors will then and only then be instructed to act in the sale. The property is to be continually marketed until exchange of contracts.
If its a bargain the best way is to stick an offer in over the asking price, as one of our clients doesn't require any notices to be placed if we get asking price or over.
We like to see people make a good offer, backed up with proof of funds and solicitors in place preferably with a request to email the HIP to them.
We've got a couple going through at the moment all in excess of the asking price.
HTH
JP
Property on market, normally cheaper than anything else in the area
Offers are made and passed on to the AMC
Once an offer is at an acceptable level the AMC will have either wanted to see proof of funds or be happy that the Agent has.
Again, depending on which company has taken in the repo they will either be happy with a Public Notice in the local paper or as seems to be happening more and more, placed in the main text of the selling agents advert on Rightmove.
Once the 7 days (normally) have expired solicitors will then and only then be instructed to act in the sale. The property is to be continually marketed until exchange of contracts.
If its a bargain the best way is to stick an offer in over the asking price, as one of our clients doesn't require any notices to be placed if we get asking price or over.
We like to see people make a good offer, backed up with proof of funds and solicitors in place preferably with a request to email the HIP to them.
We've got a couple going through at the moment all in excess of the asking price.
HTH
JP
jamescodriver said:
Depending on the Asset Management Company (AMC)the sale of a repo normal goes like this:
Property on market, normally cheaper than anything else in the area
Offers are made and passed on to the AMC
Once an offer is at an acceptable level the AMC will have either wanted to see proof of funds or be happy that the Agent has.
Again, depending on which company has taken in the repo they will either be happy with a Public Notice in the local paper or as seems to be happening more and more, placed in the main text of the selling agents advert on Rightmove.
Once the 7 days (normally) have expired solicitors will then and only then be instructed to act in the sale. The property is to be continually marketed until exchange of contracts.
If its a bargain the best way is to stick an offer in over the asking price, as one of our clients doesn't require any notices to be placed if we get asking price or over.
We like to see people make a good offer, backed up with proof of funds and solicitors in place preferably with a request to email the HIP to them.
We've got a couple going through at the moment all in excess of the asking price.
HTH
JP
sProperty on market, normally cheaper than anything else in the area
Offers are made and passed on to the AMC
Once an offer is at an acceptable level the AMC will have either wanted to see proof of funds or be happy that the Agent has.
Again, depending on which company has taken in the repo they will either be happy with a Public Notice in the local paper or as seems to be happening more and more, placed in the main text of the selling agents advert on Rightmove.
Once the 7 days (normally) have expired solicitors will then and only then be instructed to act in the sale. The property is to be continually marketed until exchange of contracts.
If its a bargain the best way is to stick an offer in over the asking price, as one of our clients doesn't require any notices to be placed if we get asking price or over.
We like to see people make a good offer, backed up with proof of funds and solicitors in place preferably with a request to email the HIP to them.
We've got a couple going through at the moment all in excess of the asking price.
HTH
JP
t, 7 days. I need to find out when the offer was placed. Thanks for the over the asking price tip. Sounds like sound advice.
I'm going to phone the EA and ask when the offer was placed and when it was accepted. Now it's accepted does that mean the 7 days are already up?
Saw the flat today. It's perfect for me. Ea was very sure he couldn't tell me what the current offer was, but he said that if I offer the asking price it's very likely they'll accept. I'll offer a bit over. Also going to say I can complete in 4 weeks. Bit of an arse, my rental agreement expires this month.
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