Just off the phone to an agent re: a prospect and he said that it’s in the hands of the lending institution.
I gather that one of their criteria for accepting a bid is that the property has been on the market for a set period of time - to ensure adequate exposure to the market. This property has achieved that, being on the market since August last year so is ripe for a bid
What else should I consider in negotiating the best deal possible. Just low-ball and take it from there? Some percentage of asking?
Any other advice / considerations when dealing with a lending institution. It’ll be a cash purchase.
Try to figure out who it was repossessed from and under what circumstances. The last thing you want is to find out that the dispossessed previous owner is now back living with his parents next door or something like that.
If it’s in the hands of a lending institution they’ll be slow to agree a lower price.
You have to imagine it coming to a committee meeting. No one will stick their neck out.
If it’s acceptable to pay the asking, offer that and it should move quickly from there.
I did previously offer asking on a bank property, was accepted quickly (1 day), but then the estate agent advertised the property as “Closing this Friday” and I was outbid.
You could try say that you’d offer asking as long as it’s taken off market but I don’t know how they, agent or bank, would react.
I suppose the only counter to this is the difficulty in valuing anything other than identikit houses. The committee could reasonably suppose an accurate valuation in the case of estate houses where there’s precedence in the estate and any number of similar estate houses around. But outside that valuations are real lfinger in the air stuff. I doubt anyone would get fired for giving a nod to that notion.
Been through the process in 2013, the estate agent was clearing a good few repos at the time working on getting them sale agreed in about 2 weeks. They were happy to entertain low ball offers but were upfront that the house would be listed at the current bid. Still happy with the price we got it for but the initial low ball offer only acted to draw in a lot of other interest, make no mistake, the bank will expect the EA to let them know the bid they’re close to accepting. Thankfully the absolutely manky bathroom put most people off.
Good to know lowballs a runner. I don’t really mind what happens as a result of my own bid. I’m moving more towards Eschatologists view of setting a number that suits yourself and bidding up to that and being happy to walk away. There are always more fish…