Buying A Repossessed House

[greeneyedmonster]

We are interested in a repossessed house that the agent reckons developers won't touch as it's fairly expensive. We have admittedly been humming and ha-ing as we've never done this sort of thing before (we weren't looking for a repo). We were told it was fine to make a cheeky offer which we did this morning only for the agent to say the offer was too low as someone else had made a higher offer on Saturday, and they haven't got anything to sell. This house has been on the market for over a year so suddenly for someone else to come out of the woodwork and make an offer makes me think there is a rabbit off! I really want to call the agent's bluff but we are scared in case we lose the house. Has anyone any advice on how to play the estate agents at their own game? Also how to find out which company is holding the house for the bank so I could make some sneaky enquiries? Thanks a lot :-)

[friedgreentomato]

Get someone else to phone the Estate Agents say they are interested and has there been any other offers - see what they say!

[lcg]

as you say, it seems a little 'convenient' that another buyer has suddenly turned up....so hold fast. call their bluff! x

[Buenchico]

You can find out who has repossessed the property by downloading the title register for £3:
http://www.landregistry.gov.uk/public/online-services

The lender who has taken possession of the property has a legal obligation to seek the market price for the property, as the sum it sells for will determine how much is left over for the previous owner (or how great his remaining debt will be). So a really low offer is bound to fail. My house was a 'repossession' and I had to make an offer quite close to the advertised price before having an offer accepted.

[greeneyedmonster]

Thanks so much for the quick replies. I may just get a friend to ring up...let the estate agent be suspicious for a change! They told us last week that the price was going to be reduced again but as they knew we were interested they were trying to hold that off as it would mean we couldn't make an offer for another 7 days. They encouraged us to make a cheeky offer so we have gone 30% lower than the current asking price, intending to go a bit higher as need be but all this is really giving me cold feet. They know our "best price" (courtesy of the financial adviser) now which kind of gives them the upper hand. Does the Land Registry thing not just show whichever bank is involved? Thanks again.

[Buenchico]

>>>Does the Land Registry thing not just show whichever bank is involved?

Yes, but when I bought my house the vendor was the bank anyway.

[greeneyedmonster]

That's no good then because I know the bank have passed it on to some company to deal with. Cheers anyway.

[The Builder]

Greeny, you probably know that an agent is bound by law to pass on all offers. Your "cheeky" bid will have been logged. They also know what your best bid would be.

The agent will keep you "in the loop". If the Saturday bid is better than yours, that would be the end of the story. If the bid turns out to be unsubstantiated, then the agents will get back to you like a shot.

You must wait to hear from them. To them, you are a good fallback. Your best bid may not be enough of course. You are in a good position. Let the agent sweat it out ;o)

[greeneyedmonster]

This is even more nerve-wracking than normal house buying, and that's bad enough!

[themas]

You say:

"They know our "best price" (courtesy of the financial adviser)"

Did you agree to the adviser doing this? If not, you should make a formal complaint to his/her firm & pursue it. They have potentially disadvantaged you significantly.

[greeneyedmonster]

Well, it's in an extremely small office, we sat in a room with the FA with the door open and as he seemed fully conversant with the properties on the books I am just assuming that if the agents didn't already hear, it probably wouldn't have been too hard to find out! I will definitely be more guarded in future :-(