Repossessed house - Offer Price?

[calvtan]

Hello All,

Just a quick advise about housing market. I have seen a 2 bedroom flat around London.

It is a new flat which is 2 years old that has been repossessed.

The price sold 2 years back was GBP 360,000 (peak).
Now, from repossesion, it is currently on offer for GBP 240,000.

Currently, I have a group of investor and thinking of cash-buy, what do you think is the best level to go in at? 10% off the offer price (bearing in mind GBP240,000 is the current offer- repossesed price) - go about GBP 218,000 - GBP 220,000?

Thanks.

P/s: Also, this building are newly build and cover by NHBC, is there a separate documents that come with title or is it automatically attached to the flat?

 

[maggot]

215,000 I would start at the worst that can happen is they say no. The housing market at the moment is iffy as im sure you know. If they have a real offer they might just let it go its one less for them to worry about.

 

[calvtan]

thanks for your advise...

 

[Donnie Darko]

Flats are taking the biggest hits,and have mainly been well over priced.

 

[Enticy]

Hi,

Whilst I cannot advise you about the value as that is the job of an estate agent, surveyor or valuer; I can confirm that the NHBC documentation will depend on the set up of the building and what was done when it was built.

I suspect that each flat will have its own NHBC Buildmark Certificate and booklet. The commons parts of the building will likely have there own Certificate or there will be a certificate over the whole building.

The holder of the common parts certificate will depend on the legal arrangement of the building. If it is commonhold there wil be a management company of which the commonhold unit holders are memebers. If each flat is leasehold (more likely) then there will be a landlord which may also be a management company but it doesn't have to be. The management company or landlord will hold the common parts certificates.

Hope this helps.

Enticy

 

[calvtan]

Thanks you guys for your valuable feedback...

Will take that all in!

Thanks again..

 

[Munkey]

Ignore the selling price.
Offer the 2002 price
If they decline walk.

 

[calvtan]

Thanks.

I don't really feel comfortable speaking to the current EA we are dealing with now.

Do you think there will be someone else that handles the similar case if I go into the office and look for someone else to talk to?

This type of company normally small, so one person handles all the sales, and another on let...

Sorry, this is becoming more like a rant, rather than discussions!

 

[MikeS]

house prices aint bottomed out yet

i would leave it until the new year imo

people will not be buying houses leading up to xmas

if some idiot wants to buy a house now fully knowing the chances are it will be worth 10% less in 4 months then be my guest

dont feel the need to be under pressure cos you are worried some other person will buy it before you - biggest biggest mistake you will ever make

take your time cos there is a lot of desperate people out there and it is going to get worse

 

[calvtan]

house prices aint bottomed out yet

i would leave it until the new year imo

people will not be buying houses leading up to xmas

if some idiot wants to buy a house now fully knowing the chances are it will be worth 10% less in 4 months then be my guest

dont feel the need to be under pressure cos you are worried some other person will buy it before you - biggest biggest mistake you will ever make

take your time cos there is a lot of desperate people out there and it is going to get worse

thanks you guys for your advise...really appreciate it...

 

[Purity]

Very good time to buy if you've got a decent deposit.

I'd probably leave it for a little while longer if it was me, and I think you'll get a bargain

 

[Munkey]

We're miles from bottom. Traditionally the stock market bottoms out about a year to two years before the housing market. The stock market hasn't bottomed!

Just my opinion of course, I'm no FSA regulated financial advisor..

 

[DesG]

As an EA 'friend' of mine said recently:-

Too late to sell, too early to buy!

Cheers, Des.

 

[calvtan]

thanks thanks.. good to hear some feedback!

 

[calvtan]

Hi all again,

With regards to the property above, we have decided to improved our offer to match/slightly higher than the offer currently on public notice.

I spoke to the EA again, and he mentioned that he already given me last chance last week and he feels it is not right to put in my offer to gazump the current offer.

I know gazump is not a good thing, but he was one h*ll of a impatient EA and never given me enough time to consider my budget.

As I understand, from repossesion point of view, it is by law that the Bank must accept the highest offer (to recoup as much to help the poor guy) and it is an obligation for the EA to submit my offer no matter how much I offer and in this case, I am feeling the EA might not have submitted my latest offer.

Is there anyway I could deal with the Bank directly instead of through this "sh*tty" EA?
But, the problem is I do not know which bank are currently holding the offer...

And, the estate agent office is very small, everytime i call, it is that "sh*tty" EA that picks up the phone. I even hangs up the phone once when I was so angry...

He is the worst EA I have seen in my life and of all thing, he is the one in charge of the property I am currently interested in...

Sorry for the rant!

p/s: i know this sounds like desperation, but the reason i am pursuing this case strongly is because I find that my partner and family really love this flat and I don't mind paying a bit more for it...

 

[Munkey]

If you must put in an offer and insist that you have to buy the place then go for it. Just be ready for a little negative equity for a good few years.

But it won't matter if you are going to live in that house for 5+ years and can afford the mortgage payments if interest rates double in the next few years.

See what kind of fixed rate deals are around. We may be looking at around 3% by Christmas and a tad lower than that a few months after but later next year I expect interest rates to rocket for a good few years. Just some advice, please don't take a munkeys advice as gospel.

 

[calvtan]

The problem now I am facing is:
How do I insist the EA to put forward my offer? I understand it is a requirement by law, but I got feeling that he is putting my offer "aside".

Is there any way I could find out which bank that currently holding the repo house and how I can deal with them directly rather than the "sh*tty" EA?

 

[MikeS]

why are you buying a house now ?

do you need to ?

christ man things are going to get a liot worse

we got another year atleast of house prices dropping

you buy a house now it will be worth 10% less minimum this time next year

 

[calvtan]

why are you buying a house now ?

do you need to ?

christ man things are going to get a liot worse

we got another year atleast of house prices dropping

you buy a house now it will be worth 10% less minimum this time next year

Thanks.. true true...

The only questions on my head now, is how do I know exactly if the EAs actually pass my offer over...?