spoken to the receivers of rent who effectively own the house i live in.
The house will be sold with sitting tenants, although we are free to make an offer.
At this stage all they have said is the property will be sold, they can't actually tell me when as they haven't decided. They intend to appoint an estate agent at some point to be decided....
When the property finally goes on the market if i decide to make an offer how does it work
If for arguments sake the property goes on the market for 150k and i offer 100k, will this be accepted, refused, etc. I believe that there is a 1 month window after an offer is made for other offers? Correct/Incorrect?
Anything i need to be aware of?
At this stage i am just trying to quickly learn what i can and can't expect.
I bought a repo house earlier this year which I'm currently renovating.
The process is the same as buying a normal house except for a few differences. You put a bid in, you need to supply proof that you have the money in place at the time of the bid, they either say yes we'll accept or no, you are way off.
However when the bid is accepted, a notice is then placed in the local paper/internet saying they have received an offer of X amount and anybody wishing to submit a higher ofer should do so before completion of contracts. (you usually have either 14 days cash or 28 days (i think) with a mortgage to complete). So you will be in the process of buying the house, solicitor appointed etc but someone could come in and bid more and the mortgage company might accept this. You would then have to decide to pay more or walk away but still pay solicitors/survey fees.
I was lucky with mine as noone else came in with a better offer and as I work in engineering I didn't bother with a survey as the structure was ok - I was going to gut the house anyway so plumbing/electrics etc wasn't a concern
edit: I doubt you'll get 50k off of 150k but you can use it as your first bid and see what the agents say.
edit: I doubt you'll get 50k off of 150k but you can use it as your first bid and see what the agents say.
I doubt it, just trying to get an idea of what may or may not happen. I do have a feeling of what the price will be, i also have a feeling based on what other similar properties have gone for.
Question, do sitting tenants make a property more or less valuable, or does it make no difference?
Depends mine was a repo and went for 10% over the asking prie - it was massively underpriced to be fair
they encourage a bidding war as they dont care about anything except getting the most they can apart from that [ given above re adverts] same as buying any house
theyre usually auctioned off to the highest bider, but because youre a sitting tennant, that may not work so well, make an offer and see what happens.
or somebody may buy it and then you may get offered a bag of cash to move out, i did in a flat i lived in once.