Repossessed House Part 2!

[greeneyedmonster]

I've already posted about this today so I'll keep it brief! We are interested in a repossession but another offer has mysteriously been made. The Estate Agent has told me that he's not allowed to tell me how much it is for but a friend says he should have at least told me if our offer was higher or lower. Any ideas anyone? He blithely took note of our offer which kind of confirms my suspicions-if it was lower than the allegedly existing offer why take it? Why not just say that we need to go higher? Very odd!

[greeneyedmonster]

You have hit the nail on the head Buildersmate! The agent knows we really, really want it and as financial matters were discussed more or less in front of him he knows we can afford much more than we are offering. Big mistake! I tried to bluff him today by saying that we weren't going to get into a bidding war and that there were plenty of other houses but don't know if he believed me or not. Que sera sera and all that....

[FredPuli43]

Oh dear! You've done the equivalent of taking your wife to a jewellery auction and sitting in the front row; there you'll get the piece after being chased up by dealers in the room who all stand at the back,bidding just for a lark because they know you'll buy it for her, and finished off by bids from the chandelier, as we say (meaning bids by the auctioneer himself looking up as though seeing bids when none are being made; that's why the dealers are at the back, to spot and stop that when they are bidding).

But all is not lost. If you were a billionaire , knowing that wouldn't affect the agent but being keen will cheer him. You have to know what the property is worth in these circumstances, leave your offer on the table and allow a bit for vanity when the vendor comes back. Then you add the vanity bit of a few per cent and say "Now I'm being generous, your vendor knows that, but I've had enough and am walking away, if he doesn't want the cash. Thanks for your help" You can add that circumstances have changed, that you are chasing another property, if you like.

The consolation is that you are probably be proved to be buying it cheap enough, when the market picks up. We've all bought property too dear in our time but been consoled by that fact, if we're buying to live in it

[greeneyedmonster]

Haha...you made me laugh Fred (and I never knew that about the chandeliers!) The trouble is we don't know what it's worth as there's nothing to compare it to. It's on for a lot less then it was originally and after a bit of digging I wonder if it's actually worth what it's on for now. It could be, but not in its current state. I just feel that because he knows how far we could potentially go he's pushing us to go higher which will mean more commission for them? We have to see him tomorrow anyway so me and hubby are planning an Oscar-winning performance of indifference. Hope it works ;-)

[FredPuli43]

Well good luck. I always have a surveyor go in and say that he wouldn't touch it with a bargepole, but whoever buys it will need a hundred thousand (adjust figure to suit) to make it usable. Agents rarely know any different, are desperate to sell now anyway and this is a repossession, so it may even be true (the previous owner may not have been able to maintain it), not that I doubt the honesty or professional judgment of my surveyors, you understand, but they can be very thorough, not to say nit-picking, when expected.

It may be a bit late for that, but the condition, even to a layman, may still be such that an educated guess on "essential" work can be made

[greeneyedmonster]

We are taking a friend with us tomorrow who has bought and sold property all his life so I'm hoping he might be able to do the necessary and put the willies up the agent! I know buying property is hard at the best of times but I can do without professionals being dishonest - which I am sure is what's going on here. If we are eventually successful I will report back!

[FredPuli43]

You must be able to find a house to compare it with on some website. No? It would give you a figure to work back from. If there are property auctions for your area, that will give a clue too, if only because the lots are nearly always defective in some way and a good many are repossessions

[FredPuli43]

Hey, careful. Professionals being dishonest ?Never. Least of all the agent who sold me a house "convenient for the railway" which was two miles from the station but one house away from the Harwich all night freight line (you get used to the rumbling at 2 am).

No, the vendor will have to take what you offer, by the sound of it. He is after a quick disposal; it's a repossession. It's not as if he's somebody who is thinking of downsizing, is going to give the profit to his grandchildren, and can afford to wait.

[bednobs]

or there really could be another offer?

[greeneyedmonster]

Yeah Bedknobs there could be another offer...but I sincerely doubt it. As we'd arranged to view it again today I asked if we could still do this and I was told "of course". Now bearing in mind that someone is proceedable and has made a better offer than ours and the company involved are keen to get rid, what would be the point of the agent driving to another town in this weather to show us round again?
Fred, there really isn't anything to compare it with. It's on its own on quite a large plot and is nothing like anything around, which makes it difficult really as there could be the potential to make a killing-but then again there might not. If we get it for what we've offered (which I doubt) it will indeed be a bargain-if we don't, well, we will just have to chalk it down to experience.

[bednobs]

The estate agent wont take it off the market and stop viewings till the offer has been accepted. At the end of things, you know how much you are willing to pay for it, and the vendor know how much they are willing to sell it for. If those two amounts don't match or overlap, you are never going to buy it. In any case, a first offer is usually just a start point for negotiations unless you are in a very buoyant market. There is nothing stopping you asking the question of the agent "what price do you think they'd take it off the market for?" If you really want it, work out exactly how much your best and final offer would be, and work up to it

[greeneyedmonster]

Thanks to everyone for your help and advice. We went back yesterday with a friend who has done a lot of property developing and though he liked the house he reckoned it's not worth what it's on for....and it's put us off a bit. Our offer was rejected (as well as the other offer) and the price has now been dropped by £20k. It was only ever going to be worth it if we got it at a decent price as we'll have to spend about another £80k to get it up to scratch so regrettably I think we will have to walk away. Sad, as we could have breathed life into a once-lovely house :-(

[FredPuli43]

Ah well, you didn't need my surveyor ! The vendor will have to face facts. He may not have been aware of the cost of , or need for, substantial and expensive work. Pity, but as well, in the circumstances, that your offer wasn't accepted and you found yourself with a property needing that work. If the vendor is realistic, he'll end up selling it for far less to some builder or other professional developer who can get the work done and still see a profit.