Hi all,
I'm hoping some of you wise posters on here may be able to help advise when it comes to bidding on a bank property.
We've recently viewed a house which we are extremely eager for (haven't told the EA that of course!) which is being sold by a bank.
The house, whilst relatively modern needs a lot of work done and there are a number of issues with it that is no doubt off-putting to other prospective buyers and which may cause a problem for FTB's in getting a mortgage - not an issue for us however as we would be cash buyers.
The problem is we're not sure how much to bid. We're aware of a number of issues which would scare most buyers off, but it's something we're willing to take a chance on. Because of these serious issues however, we would be thinking of placing an offer about 40% less than asking price to begin with.
Whilst we don't want to be laughed out of the place with an offer such as this, we also feel that we're in a strong position to negotiate as the house has been up for sale for about 6 months and whilst there has been good interest in viewings, it is apparent that once the issues with the house become known, potential purchasers back off. We would be cash buyers and able to close the sale quickly if the bank accepted our offer.
Lets say for arguments sake that the house in question has a sale price of 100k, we would be thinking along the lines of offering somewhere in the region of say, 60k with a view to upping our offer up to about 70k if needs be.
Does anyone know what banks are like when it comes to accepting offers on bank sale properties these days? Are they rigid in wanting to hold out to get as close to the full asking price as possible, or has anyone negotiated deep discounts on "undesirable" properties or those with a history in order to be shot of them?
Are we realistic in thinking that we might be able to get say, a 30% reduction on the asking price - are banks flexible when it comes to negotiation?
If anyone has any experience in making offers on bank properties we would love to hear how you got on in the end and found the whole experience.
I'm hoping some of you wise posters on here may be able to help advise when it comes to bidding on a bank property.
We've recently viewed a house which we are extremely eager for (haven't told the EA that of course!) which is being sold by a bank.
The house, whilst relatively modern needs a lot of work done and there are a number of issues with it that is no doubt off-putting to other prospective buyers and which may cause a problem for FTB's in getting a mortgage - not an issue for us however as we would be cash buyers.
The problem is we're not sure how much to bid. We're aware of a number of issues which would scare most buyers off, but it's something we're willing to take a chance on. Because of these serious issues however, we would be thinking of placing an offer about 40% less than asking price to begin with.
Whilst we don't want to be laughed out of the place with an offer such as this, we also feel that we're in a strong position to negotiate as the house has been up for sale for about 6 months and whilst there has been good interest in viewings, it is apparent that once the issues with the house become known, potential purchasers back off. We would be cash buyers and able to close the sale quickly if the bank accepted our offer.
Lets say for arguments sake that the house in question has a sale price of 100k, we would be thinking along the lines of offering somewhere in the region of say, 60k with a view to upping our offer up to about 70k if needs be.
Does anyone know what banks are like when it comes to accepting offers on bank sale properties these days? Are they rigid in wanting to hold out to get as close to the full asking price as possible, or has anyone negotiated deep discounts on "undesirable" properties or those with a history in order to be shot of them?
Are we realistic in thinking that we might be able to get say, a 30% reduction on the asking price - are banks flexible when it comes to negotiation?
If anyone has any experience in making offers on bank properties we would love to hear how you got on in the end and found the whole experience.
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