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Repossession: What to pay and How to Play it

28 replies

duke748 · 08/01/2009 11:04

Hi all.

The house two doors down from my friend is up for sale as a repossession and I am interested in buying it.

Here's a link here: the house

Inside it is still magnolia everywhere and new cream carpets throughout. Nice modern neutral kitchen and bathrooms. Big garden too.

But it kind of has the air of being unloved about it. It is 3 years old and has been lived in for 6 months only. Been for sale for 8 months now.

Its on for £135,000 and my friend's house, which is exactly the same (but the other way round!) is currently worth £170,000, but has a conservatory built on and is fabulously decorated.

I am interested in it as I currently rent a 1 bedroom flat and I could live in this 3 bedroom house for a similar outlay.

Its very convenient for work both now, and gives me access to lots of future employers. I could rent one or two rooms out, and it would be suitable if someone moves in or even if I have a family. I can extend into the loft, the garage or add a conservatory, so plenty of scope for extension. So, I can see it as a long term house, definitely.

I see it as liveable right now as everything is clean and neutral, but I think I could make it into a home by adding a bit of colour and, of course, the woman's touch!

I have offered £124,000 on it and it has been rejected. Its very frustrating, as it is going through a bank, there is no, 'we were thinking more of...£x'.

I do really want it, but part of the appeal is that it is cheap. I can go up to £135,000 with my mortgage, so was wondering what people think I should go to, if any more at all?

Thanks, as always for your words of wisdom.


OP posts:
mrsdisorganised · 08/01/2009 11:11

Seems like a nice property....alot of potential in regards to income and extending, exciting, also the best time to buy as house prices are falling. I wouldn't offer the asking price straight away, but if you're keen and definately want/can afford it go as high as you feel it's worth, base it on a surveyors report if thats easier.
Good luck

RubyRioja · 08/01/2009 11:12

This reply has been deleted

Message withdrawn at poster's request.

snoringnightmare · 08/01/2009 11:14

Problem is if a repo then the bank has a bottom line i.e what they lent on it. Also, they have a duty to their borrower to get the best price possible.

Maybe the £135000 is the lowest they can go.

Bramshott · 08/01/2009 11:19

If you want the house and you CAN pay £135,000, I'd go up to that (not immediately, but be prepared to). There is no point losing a house you want because you're playing games and want to get it at the best price. A house is primarily a home rather than an investment (especially these days).

chopchopbusybusy · 08/01/2009 11:19

Well, only you know how much it is worth to you. Personally, I would offer something in the middle, maybe £130. If you really want it you could then go a bit higher.

Fimbo · 08/01/2009 11:19

I thought you had already bought Duke, last year?

duke748 · 08/01/2009 11:41

Hi ladies.....

Interesting views thanks. To be honest I thought that a lot of people would say not to put a higher offer in at all in the current market. I guess I must have painted the house in a very good light, either that or yout are all as property mad as I am!

I will sleep on it and consider offering the £130,000 a few of you have suggested. Its very hard with no feedback to know what is right.

You are right about the bank having a bottom line, I just wish I knew what it was!

It was up for sale for £145,000 until recently.

Fimbo - I was looking last year (well remembered!), but the chain fell through, so have stayed renting.

And by the way, I don't feel too bad about potentially gaining from a repossession, as I know it was bought by a buy-to-let owner who let it out for 6 months but didn't pay the mortgage!

So, its not like a family home where there has been a redundancy and they loved it but couldn't afford to stay. As I said, it looks very unloved.

I don't know why, but that is important to me.


OP posts:
Fimbo · 08/01/2009 11:52

Could you not ask the bank to find out what is the least they would accept?

Sorry your chain fell through btw, seems to be happening quite a lot these days.

duke748 · 08/01/2009 12:24

Nope - have tried that. I don't even know what bank it is.

I have to submit a form with my details and proof of ID and proof of mortgage and deposit. I send it to the estate agents, who send it to the bank.... and then I wait a week for an answer.


OP posts:
Fimbo · 08/01/2009 12:25

You would think in the current climate they would be biting your hand off.

nula · 08/01/2009 12:49

I would def offer more if you really love it.
It looks fab .

lalalonglegs · 08/01/2009 13:18

The bank has to be seen to get the best possible price (it has a legal obligation to the person with the mortgage since, if they accept less than the mortgager owes, he or she will be responsible for paying the difference). An agent told me that it is good to think of a slightly uneven number, say £128,750, and offer that rather than a nice obvious one. It sounds as if you have put thought into it, iyswim. Have you emphasised that you are chain-free? Can you produce anything to show you have a mortgage agreed in principle?

If your friend's is really worth £170k (and I would wonder how she arrived at this figure unless she bought it in the past month or two), then I think £135 sounds reasonable. Just because it is a repo doesn't mean it will sell under market value and, if you can pay the same to live in it as a one-bed flat, then I think you should, ultimately, be prepared to go up to that figure.

duke748 · 08/01/2009 13:53

Lala - thanks loads for your post, it seems very well thought out.

I have indeed emphasised that I am chainfree, and that I work for a bank, which is doing my mortgage, so can push through the mortgage paperwork etc.

You have to show a mortgage in principle before they let you put in an offer, so I have indeed shown this.

My friend's valuation is based on one in the same estate that sold about 3 months ago for £180k - though slightly smaller house.

They had found someone to buy theirs a year ago for £205,000, but the buyer pulled out due to their chain falling through. So based on this information, I would say its a relatively fair estimate.

You are right £130,000 or £135,000 is probably a fair deal.

The way I am looking at it is if it is worth £170,000 currently and the house prices fall by 15% in 2009 as some have predicted, I would like to buy it for less than £148,750, which is 85% of the current estiamted value.

Anything less than that seems like a discount.

I have to bear in mind that it does not have anything 'special' about it, ie no decoration at all, which will probably bring down the value by £5,000 or so, but that's it, and easily remedied.

Hmmm........ am busy thinking about this instead of working at the moment!!!


OP posts:
duke748 · 08/01/2009 14:34

PS- living near to one of my best friends is probably worth a fair bit too - think of the BBQs!

OP posts:
nula · 08/01/2009 18:01

I can heartilly recommend livin close to a good frined esp if you have kids who are friends.

duke748 · 09/01/2009 15:53

Just to update you - I have put in an offer for £130,000. My final one. So now my fate is in the hands of the bank.

Will let you know when I hear anything, which should be in about a week's time.

Fingers and toes crossed.


OP posts:
snoringnightmare · 09/01/2009 16:19

Fingers and toes crossed here to. Good luck.

nula · 09/01/2009 21:26


duke748 · 13/01/2009 23:14

I have a feeling I will find out tomorrow (Wednesday) or Thursday if they have accepted my offer on this house.

This waiting and no feedback is a nightmare!

Will keep you all posted.


OP posts:
sunnylabsmum · 14/01/2009 07:11

Looking via the rightmove links on about my place number 16 bank view sold in APR 2007 for £210K

duke748 · 14/01/2009 21:36

Sunnylabsmum - you are good! Yep, it did indeed, crazy huh?

I am due to find out if I can have it yet.

I have everything crossed, but have promised myself that I won't go up any more than £130,000!

Will keep you all informed.


OP posts:
duke748 · 16/01/2009 10:21

Grrr... still no answer, I put my offer in a week ago!

OP posts:
duke748 · 16/01/2009 10:21

Grrr... still no answer, I put my offer in a week ago!

OP posts:
duke748 · 16/01/2009 14:40

Good news ladies!

My offer of £130,000 was accepted today. Yippeee!

They will still market the property and let me know if they get any higher offers.

Am elated.


OP posts:
Fimbo · 16/01/2009 14:42

Well done, are you not slightly miffed they are still marketing it though?

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