House for sale by receiver

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DingDing

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Saw a house for sale by a receiver.

The guide price is high in my opinion.

If the house is not sold, what percentage of the guide price do you think the reciever would sell the house for.

Would a cash bid of 25% of the guide price be worth a chance.

Any one any experience / examples of what would be realistic.

The house is an old house that was purchased to develop the site, however the house has not been lived in for 7 years, would require a lot of work and is probably in OK structural condition.
 
If I understand you correctly, you're planning to put in an offer which is a 75% reduction on the asking price. I'm afraid, You have no hope of success with that.

Best thing to do is to contact the Receiver and talk to him about the property. Explain to him what you think the property is worth in broad terms and why.Try to guage his reaction before putting in an offer.

Low ball offers are indeed the order of the day but within reason. If the offer is no where close to the asking price, youre unlikely to be taken seriously

Ask a local Valuer to value the property. if you think this will support your view that the property is overpriced by 400%, you have something to aid your negotiations with the Receiver
 
There is (generally) a greater degree of realism in asking prices now.

Unless the property is exceptionally overpriced there is almost certainly no point in offering 25% of asking. But without knowing the property it is very hard to make comments about it. I'd be surprised if a receiver was that far off a realistic selling price.
 
Nobody will be able to answer that- just put in the offer. Either they accept it or they don't, no biggy.
 
I have removed the link to a couple of actual houses, as the intention was not to discuss actual houses or their price.

They were meant as an example as to how I thought properties for sale by recievers were overpriced.

And I was trying to discover what sort of negotiation space there was with recievers.

As always for all houses you can ask what you want, the house is only worth what someone who has access to the capital is willing to pay.
 
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Hi DingDing,

I don't think you are comparing like with like. The house you highlight for 310K is a four bedroom house in a nice area but it's an estate. A very nice estate but still an estate (relatively small site, houses close on each side, I think houses to the rear).

The house for 200K is a seven bedroom house on a decent sized private site with green fields to the rear. There is a lot of work to be done with it but, in my opinion, after that the house would be worth way in excess of the 310K the other property is selling for. (apologies if this breaks the rule on house price speculation but I don't know any other way to spell it out).
I am not able to post links but you will see there is another large private residence selling in the Lisnalurg area for 450K.

As other posters have pointed out there is nothing stopping you making an offer. Unless the receiver is desperate to realise some cash for the property very quickly then I'd say you have no hope at 25% of asking price.
 
Hi Billy,

I suppose it is all about perspective. The seller will want to give a positive slant while a purchaser would want a negative.

I suppose the issue is are banks and liquidators writing down the value of houses or are they holding out for the asking price.

I take your point on the second house it could be worth. If there was a buyer 450K but it is how much you would have to spend on the house to achieve that.

And how you value a house like that for sale.

Also you would probably get a mortgage easier for the first house.

Also I take the point about the other sight being small however the second house is surrounded by derelict houses which may attract vandals.
 
If you want to put in a bid for 50,000. Put it in. They can only say yes or no. But it is very likely they will say no.

If they have no offers and you want to offer 50K, then go for it and see what happens....
 
Dingding,

Agreed, it is about perspective. I'm neither a buyer nor seller at the moment but may be in the near future so I'm keeping an interested eye on the market.

The only other local receiver sale I'm aware of sold at 150k after an asking price of 200k was not met for 6-8 months.

I may be a mile off the mark but I think this and each of the other derelict houses around it will get a lot of interest. A site on the same road is being sold subject to planning with a guide price of 80k.

Best of luck with the receiver.
 
Hi Billy,

I won't be putting in a bid, and I wasn't interested in either of these houses, I was just trying to give an example.

I was just interested in how a reciever values these houses as they seemed way over priced from my perspective.

Others have had a different perspective and seen value in the houses that I hadn't.

It is horses for courses and different people have different tastes in houses.

Best of luck with your house search and hope you find a suitable house.
 
DingDing said:
Saw a house for sale by a receiver.

The guide price is high in my opinion.

If the house is not sold, what percentage of the guide price do you think the reciever would sell the house for.

Would a cash bid of 25% of the guide price be worth a chance.

Any one any experience / examples of what would be realistic.

The house is an old house that was purchased to develop the site, however the house has not been lived in for 7 years, would require a lot of work and is probably in OK structural condition.
Click to expand...

Good question for the propertypin.com?
 
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