We are looking at a house today which is a repossession and the estate agent has put on the listing
"We are acting on behalf of the mortgagees in possession and have received an offer of £355,000 for the above mentioned property. Any interested parties must submit any higher offers in writing to the agent before exchange of contracts take place."
Is this them, basically, trying to get a higher price? Never seen it before as you normally put your offer into the EA.
Never seen an offer listed on RM before..
Is this them, basically, trying to get a higher price?
That is exactly what they are trying to do.
Person making the £355k offer should have made removal of marketing a condition of the offer.
Is this them, basically, trying to get a higher price?
Yes and no....I believe they are legally obliged to send this out prior to accepting the offer.
Person making the £355k offer should have made removal of marketing a condition of the offer.
Don't think they can in these particular circumstances.
Think its specific to this situation. I saw this on a couple of places. Its basically so the bank can get as much as they can for it.
we had this on a repossession we put an offer in.
as i understand, because they are acting on behalf of a bank who need to get the highest possible value for the property they have to do this.
If another higher offer goes in they will then publicise this offer, so right upto exchanging of contracts it will still be actively marketed so you could end up going through all the conveyencing then have a higher offer put in just before you exchange.
If another higher offer goes in they will then publicise this offer, so right upto exchanging of contracts it will still be actively marketed so you could end up going through all the conveyencing then have a higher offer put in just before you exchange.
It depends on the bank, my friends bought a repossession and they were exposed for 7 days after their offer, but once it was confirmed the house was pulled from the market
so you could end up going through all the conveyencing then have a higher offer put in just before you exchange.
Ah, so we could get gazzump'd?
^^ best check with agent then, sounds like you could be ok after 7 days as spawnofyorkshire says. I know with the one we looked at they wouldnt take it off the market until contracts done.
So best plan, if we like it, is to put in our offer then wait out the 28 days the EA is saying and hope nothing else comes in?
Do nothing else with regard searches etc as that would be wasted money, shirley?
You'll probably find that all the usual paperwork saying things like Fensa certificates, boiler installation, electrical paperwork is missing and there will be lots of "not known" on that form with the property history and modifications.
I bought one, and was happy to have a good crawl over the place beforehand and not do any survey, knowing the previous owners had knocked a few bits about on the way out, as a fixer upper, and had finance in place before making the offer so it only took a week or so before completion.
I'd be unhappy to risk £360k+ on a house without surveys or searches, but maybe you have a different view on risk, or deeper pockets.
Of course you can make an offer on it and say " accept in 24 hours or I withdraw the offer" Its up to the owner to decide if they accept this condition or not.
Of course you can make an offer on it and say " accept in 24 hours or I withdraw the offer" Its up to the owner to decide if they accept this condition or not.
Not sure where that would get you unless the property is in Scotland. In England they can accept the offer without it being in any way binding, any acceptance of an offer is worthless until exchange of contracts.
Different banks have different processes on repossessions.
Some will actively market the property up to point of exchange in the hope of a higher offer some won't.
As johnners mentions either way nothing is legally binding until exchange anyway so you can be gazumped right up till the point (seen it happen when people are all packed to move and the whole thing falls apart for them as somebody offered a few more quid at the last minute).
It's worth noting that estate agents are reasonably tightly regulated these days and they cannot overly lie about an offer that does not exist (they shouldn't covertly lie either come to that but there are some sharks out there).
Oh and equally you can put your offer in and wait until you start paying out for legal fees, searches etc.
If anything comes back during the legal process you don't like the look of you can back out also up to the point of exchange.
Ah, so we could get gazzump'd?
You could, but presumably the EA is checking you have the funds in place or can get a mortgage. Once the Bank/seller knows you're proceedable they're unlikely to upset the apple cart for an extra k or two.
Bank has a legal right and responsibility to get best offer in 28 days for the repossessed customers when an offer has been accepted. This has to be legally balanced with interest and debt mounting on an unpaid mortgage. It can be a spiral of 28 days advertising on each improved offer.
