Making an offer on a house owned by bank

trixie2007

Hi there,

We are about to make an offer on a house that we really like. House is advertised at 220k. EA told us that bank will prob take 150k-160k. We are thinking of going in at 127k.

I'm wondering how long it takes for the banks to decide and what do they take into account, when considering offers?

Thanks for any advice x

wyndham

IMO thats too far off asking.

killers1

trixie2007 wrote: »

Hi there,

We are about to make an offer on a house that we really like. House is advertised at 220k. EA told us that bank will prob take 150k-160k. We are thinking of going in at 127k.

I'm wondering how long it takes for the banks to decide and what do they take into account, when considering offers?

Thanks for any advice x

The process of putting in an offer is no different than if the seller owned the property privately. The fact that the bank are selling the property will just mean it is likely to take longer to have a decision back on your offer. These sales are handled by a committee in the banks and they may only meet once a week. Don't expect a quick decision. They take into account the exact same factors as a private seller would i.e how much of a mortgage is o/s on the property, what they think the property is worth, what comparable properties are selling for etc etc.. The banks may be more willing to sit on the property in the hope of getting a higher offer and generally won't be looking for a 'quick sale' way below the asking price. Ultimately your approach should be no different because it's a bank sale and the banks rationale for selling will be under the same considerations a private owner would have. Start low and see how it goes, don't bid against yourself and be prepared to walk away. Best of luck!

trixie2007

Thank you for the advice killers1.
We have a figure that we are prepared to go to and will walk after that.
The property has been for sale for 2years and has had no offers, so hoping to get a good deal. It has a bit of work to be done too.

killers1

trixie2007 wrote: »

Thank you for the advice killers1.
We have a figure that we are prepared to go to and will walk after that.
The property has been for sale for 2years and has had no offers, so hoping to get a good deal. It has a bit of work to be done too.

The fact that it's been on the market 2 yrs will go in your favour... Start at €127k, if the EA is saying €150k you may end up getting it in the €140k region....good luck!

trixie2007

Thanks for that. So could take a week or so for them to come back and then we'll go from there.

killers1

trixie2007 wrote: »

Thanks for that. So could take a week or so for them to come back and then we'll go from there.

You might get a fairly quick 'no' on the €127k though....when you get a bit closer to the figure they are looking to get is when it may take a while longer to hear back and have an offer accepted.

IM0

you seem to be confusing the "houses are only worth half of what they use to be" with make an offer for half of the already reduced to half price price

true

trixie2007 wrote: »

Hi there,

We are about to make an offer on a house that we really like. House is advertised at 220k. EA told us that bank will prob take 150k-160k. We are thinking of going in at 127k.

depends on the house and depends on the location....if its in a ghost estate etc. Some quite new houses are being sold by the banks for 50 to 60k in some parts of the country.

trad

There's a section in the book "Talk and Grow Rich" where the author recounted how he bought foreclosed properties from banks.

He went in, much as you suggest, except that he attached a cheque for the amount of his offer. He says he rarely got one back.

If you have the neck and can cover a cheque for the your offer it's worth a try.

StillWaters

The bank will not entertain your offer until they see proof of funds, so ensure you have copy of mortgage approval (not in principle) and deposit to show EA.

I think the 150 is about right, and I agree your offer is too low, but you may get lucky.

reprazant

IM0 wrote: »

you seem to be confusing the "houses are only worth half of what they use to be" with make an offer for half of the already reduced to half price price

You seem to be confusing the fact that the house is only worth what someone is willing to pay for it.

odds_on

Looking for a place myself and I have found that banks seem to be unwilling to move on a price and will not take less than their asking price -hence some properties are a long time on the market.

bobbyg

StillWaters wrote: »

The bank will not entertain your offer until they see proof of funds, so ensure you have copy of mortgage approval (not in principle) and deposit to show EA.

I think the 150 is about right, and I agree your offer is too low, but you may get lucky.

Do you have to show the EA the mortgage approval? I certainly wouldn't be willing to, then they would know exactly how much you have at your disposal.

StillWaters

Thats my experience. They won't discuss your offer unless they have proof you have the funds to proceed.
Just because you have mortgage approval for €200K doesn't mean you are willing to spend all of it!

killers1

bobbyg wrote: »

Do you have to show the EA the mortgage approval? I certainly wouldn't be willing to, then they would know exactly how much you have at your disposal.

No, never show the EA a copy of your mortgage approval if it's for a higher amount than needed to buy the property. If you are using a Broker they can fax/email the EA a one-liner saying 'I confirm Mr & Mrs Smith have obtained mortgage approval to purchase X property for the agreed price of €x amount'. This will always satisfy the EA. If you are dealing directly with a Bank good luck trying to get something similar..

homerjay2005

Is there anywhere or any estaye in particular that sells these properties?