Has anyone any experience of buying a repossession house?
Are different marketing rules or estate agent protocols used for these houses? Like having to advertise in the local paper even after an offer has been accepted and is proceding, or being unable to take the property off the market up until exchange, or not passing on the name of whoever or whatever organisation is dealing with the repossession to the person who is buying the house?
I've made a good offer on one in my local area, which has been accepted but I've been told they still want to heavily market the property to see if they can get a higher offer.
My instinct tells me things are not right as I feel I'm being kept in the dark and that they are using delaying tactics.
Although the possibility of losing money is the risk taken with all house purchases, and having sold and purchased numerous times in the past and being gazumped before, I have a bad feeling about this particular estate agent who has been quite off hand with me unnecessarily, and not being entirely honest with me.
If I end up being gazumped to a friend, colleague or relative of the estate agent, are they obliged to inform me?
The norm for repo's (or it was during the last crash when I was buying them) is to formally write to the agent with your offer and to show you have funds in place to proceed with the purchase (photocopy of bank statement or mortage offer). The agent will continue to market the property and usually place an advert in the local papers (and sometimes nationals!) saying something along these lines -
Bloggs & Co 12 arcadia parade has been subject to an offer of £50,000 any interested parties should contact Bloggs & Co within 7 days (or 14, 21 30 days whichever they choose).
Dont forget, they are not selling the house via the owner. The lender has taken posession for non payment but even so, they must by law gain a fair and reasonable price for it. If they dont they can be sued. The agents usually work on very small fees for repo's and hate selling them as they fetch low prices and they get a low fee(double whammy). Its highly unlikely the agent would attempt to tinker with the process but just in case -
1. Write to the agent with your offer 2. Demand confirmation of your offer in writing 3. Ask to be kept informed of any higher bids 4. Once it is sold, check with land registery to see how much it sold for. If it is lower than your offer SUE....if you've got written evidence of your offer.
We bought our current house as a repossession (1987!) - the only way we could afford the space for our growing family. Great value - we had been negotiating with occupants/vendors estate agents when the B/S repossessed. Our solicitor dealt with the B/S direct, before they'd engaged estate agents, and basically took the line that we were there with funds in place, and that if they fiddled around going to open market, they might lose us. They did a similar ad to the one described above, and then accepted our offer. We got a very good deal, and, in the first two years a stream of visits from some interesting people looking for settlement of bills... (no consequences for us, fortunately, once they realised we weren't Mr & Mrs Debt-Laden). Good luck with this - we've never regretted it.
Having bought loads of repo's over the years in my experience the Agent will advertise for 7 days only in the paper looking for higher offers which of course is only fair to the mortgage company. Any longer than 7 days then don't bother because the Selling Agent is just stringing you along. I have come across property which is not exactly in repossession but the selling style is in the same format to suck Punters in--steer clear of this method of purchase!
I feel relieved reading your posts and will wait and see what happens in a weeks time.
I still have a niggling feeling it may go to a property developer friend of one of the agents, and if the sale price turns out to be lower than my offer I'll kick up a huge stink!
I think you'll find the 7 day thing depends on how soon you approached the agent after the house went on the market. If you contact an agent within a day or so of the house going on the market its doubtful they will do a 7 day notice on it..more likely they'll pass the offer along and continue to market the property for at least 4 weeks before doing a 7 day notice in the press.....or that was always my experience in these matters.
Hi my name is Justin and I am new to repossesions so excuse my naiveity, is there a guideline to the reduction in the price of a repossesion property, or is the reduction just to hurry the sale. What exactly is this 7-14 and so day on rule about any answers appreciated, thank you Justin.
I bought a repossession house about 6 weeks ago, it had been on the market for about 2 weeks when I made my first offer which was refused I increased it to asking price and this was accepted with the condition I exchanged contracts within 2 weeks. I'd been made aware from the very start that after an offer was accepted the details would be advertised in the local paper giving other people the chance to make other offers if they wanted. The day b4 we were due to exchange somebody offered £10k more than I had but I refused to increase my offer, hoping the fact that I was ready to exch. would sway it and it did, I got the house for £100k even though somebody had offered £110k! So don't be too put off by the advertising bit, haven't they given you a time scale within which to exch.? If you get your act together and are ready to proceed hopefully like me you'll still get the house regardless.
Incidentally I've now had a chat with the planners and it seems very likely I'll get permission to build another 2 houses in it's garden so all in all, life's good and that's why I'm Laughin'
