Buying a house sold by the bank.

leanonme

Im hoping someone can advise me. I am hoping to put an offer on a house which is being sold by a bank. The house was surrendered 1 and half years ago.

I am a first time buyer, and I have a few questions about the whole process. In relation to a house being sold by the bank what should I be looking out for, is it any more difficult to buying a normal house.

Currently there is an offer of 131000 on the house, should I bring this offer up to 135000 or a different offer. It is at the top end of my budget so not sure what to do. If I put in an offer how long would it usualy take to here back.

The power has been switched off since the house was vacated is there anything I should look out for in relation to this and the water?

Rackstar

Interested in this subject myself. I read somewhere there may be a large reconnection fee for the electricity.

What way do these sales work? If you offer asking is it a done deal, bank sell and that's it? Or will the bank hold out and see if there are more bidders?

Kristopherus

There are several threads about this in this forum. If you do a search, the should come up.

ted1

Why go up 4k? Put in 132. Then if they come back with a higher offer , tell them your disappointed that its over your budget but give you a day or two then ring up saying you can go an extra 500. If there is no other buyer they'll get spooked and take your offer

If the elec has being off for over 6 months the connection fee is about 1800 and you need to get it certified
http://www.esb.ie/esbnetworks/en/commercial-downloads/ESB-Networks-Statement-of-Charges.pdf

http://www.esb.ie/esbnetworks/en/domestic-customers/restoring_a_connection.jsp

leanonme

ted1 wrote: »

Why go up 4k? Put in 132. Then if they come back with a higher offer , tell them your disappointed that its over your budget but give you a day or two then ring up saying you can go an extra 500. If there is no other buyer they'll get spooked and take your offer

If the elec has being off for over 6 months the connection fee is about 1500 and you need to get it certified

Thanks for the response. we were thinking that if we go to 132000 then then the others will go to 133 etc, but if we went to 135 then they might hopefully disappear, I know were being a little bit silly.

God I didnt know the fee was that high, i might ring the ESB to enquire bout it.

Just on other reponces, i have looked through other threads but not geting many answers there either, other than how long the process can take.

What Rackstar is saying I would also like to know if anyone has any inside knowledge on it.

The_Morrigan

Anyone with inside info would not be allowed to disclose it. That is the problem with bank sales lots of red tape, committee meetings and Bank boards tend to only meet quarterly so it is a very drawn out process.

liam7831

I would not bother with it, been there done that. They will end up wasting your time and not selling it to anyone waiting for the market to recover further.

Rackstar

The_Morrigan wrote: »

Anyone with inside info would not be allowed to disclose it. That is the problem with bank sales lots of red tape, committee meetings and Bank boards tend to only meet quarterly so it is a very drawn out process.

So what happens with offers? If there is an offer made on a house that a bank is selling does the estate agent go to the bank with it and it takes months for them to come back with a response?

Rackstar

liam7831 wrote: »

I would not bother with it, been there done that. They will end up wasting your time and not selling it to anyone waiting for the market to recover further.

What happened in your case? Did you meet asking or were you offering below asking?

liam7831

Rackstar wrote: »

What happened in your case? Did you meet asking or were you offering below asking?

Was over asking, highest bidder, bank decided still was not enough so just got auctioneer to take it off the market, you end up constantly contacting auctioneer who in reality does not have a clue whats happening.

Rackstar

Rackstar wrote: »

What happened in your case? Did you meet asking or were you offering below asking?

That sounds like right nightmare. was considering making an offer on a property the bank are selling.

Aka Ishur

Reconnection fee depends on time disconnected
0-6 months - approx €80 depending on provider
6-24months - €80 plus completion cert by a RECI electrician (€200-€250 depending on who you get)
24months + - €1800 plus completian cert as it is regarded as a completely new connection

The_Morrigan

Rackstar wrote: »

So what happens with offers? If there is an offer made on a house that a bank is selling does the estate agent go to the bank with it and it takes months for them to come back with a response?

Pretty much.

leanonme

Another thing is I am aware that the house went sale agreed at 138 but the buyer could not get the fund so sale fell through, are we better offering this money, which would be the top end of our budget?

simpson80

Hi there. I am nearing the process of buying a house from the bank. best advice would be to stay well clear if you are impatient or looking to move relatively quickly.
we put our offer in in June, sale agreed start of October with no other bidders and contracts only arrived before Christmas. we have signed and all since then and are hopefully receiving keys next week. has been an awful experience but will hopefully be worth it.
as regards the esb, they will need mprn of the property and from this they will know the date it was disconnected, the prices on the website are a guide but you will receive a quotation and my engineer has told me my price will be nowhere near the 1800 mark as the work to be done is minimal even though it was disconnected in 2010.
Have a long think about it but go in knowing what to expect and be ready to wait. Good luck.

leanonme

simpson80 wrote: »

Hi there. I am nearing the process of buying a house from the bank. best advice would be to stay well clear if you are impatient or looking to move relatively quickly.
we put our offer in in June, sale agreed start of October with no other bidders and contracts only arrived before Christmas. we have signed and all since then and are hopefully receiving keys next week. has been an awful experience but will hopefully be worth it.
as regards the esb, they will need mprn of the property and from this they will know the date it was disconnected, the prices on the website are a guide but you will receive a quotation and my engineer has told me my price will be nowhere near the 1800 mark as the work to be done is minimal even though it was disconnected in 2010.
Have a long think about it but go in knowing what to expect and be ready to wait. Good luck.

Thanks very much for your response. We are not in a hurry to buy bar the fact that we have mortgage approval for another five months, so ideally we need to go sale agreed in the next four months, and then have another four for the sale to go through. We are happy to wait 7 months (leave us more savings :-)) We are aware the house went on the market 4 months ago, it had gone sale agreed but didnt go through due to lack of fund from a buyer. We had seen the house this time but didnt have a morgage. We are hoping that the bank will want to go sale agreed again.

Thanks for info on ESB, very usefull.

mickman

we also went sale agreed at end of september. COntacts arrived end of october but we couldnt sign until mid January due to missing documents. I ended up doing lots of research and document finding myself as the receivers solicitors wont do it

Contacts sent back last week so we hope to close at end of march. Its a long process alright but we will save a minimum of 100k

sohappy

ted1 wrote: »

Why go up 4k? Put in 132. Then if they come back with a higher offer , tell them your disappointed that its over your budget but give you a day or two then ring up saying you can go an extra 500. If there is no other buyer they'll get spooked and take your offer

If the elec has being off for over 6 months the connection fee is about 1800 and you need to get it certified
http://www.esb.ie/esbnetworks/en/commercial-downloads/ESB-Networks-Statement-of-Charges.pdf

http://www.esb.ie/esbnetworks/en/domestic-customers/restoring_a_connection.jsp

This is not quite true in reality, I bought a house where the power was cut off for 4 years, I got it certifed and esb networks only charged 80 euro to reconnect, That figure they quote seems to only apply if they have to run new cables or put up a new pole,

mickman

sohappy wrote: »

This is not quite true in reality, I bought a house where the power was cut off for 4 years, I got it certifed and esb networks only charged 80 euro to reconnect, That figure they quote seems to only apply if they have to run new cables or put up a new pole,

Thanks for that info as I'm in the same boat

CharlieQ

Hi,

We recently Purchased a Property from Bank of Ireland. It is a long process but worth it. We put in our Offer on 10th May 2014 and did not hear back until late June when our Offer was accepted. The Offer was less than the asking price. Contracts were sent to our Solicitor in September but there was paperwork missing and it took until the middle of November for her to sort out. The Banks solicitors were very little help. There was a large amount due to the Management Company (The property is in an apartment complex) so she had to make sure the Bank paid for this out of the Sale Proceeds. The Contracts were signed on 26th November and we received our Keys days later.
Regarding the Electricity this had been disconnected in 2011. I had to reapply for a new connection but because the cables, ducting etc were already there it cost only € 87.40. I then needed to get a RECI Electrician to certify the apartment and within days Electricity Networks had us reconnected. We have Gas and that had been disconnected in 2012 and this cost € 61.50 to reconnect and took 5 days.

Hopefully this information is useful to you. If you are not in a hurry hold out as there is normally great savings on these Properties.

Best of Luck to you and hopefully it works out for you.

MANUTD99

Very similar experience here to other posters.

Bought house from KCB bank. Viewed in June and was accepted as highest bidder by estate agent end of June.House was already empty for 1 year . Offer was not accepted until end of July by bank (30K over asking price) Did not get keys until 19th of December.

Very long process. I got a lot more involved with the legal side of things than I thought I would have (ie) ringing management companies, local county councils. Chasing documents.It's harder to push a sale through when you don't have a dweller on the other side willing to go the extra mile to help you along. There was times I thought it would never happen.

I'm sitting here in my lovely 3 bed house now typing this. It's hard bloody work mind but very rewarding. Hopefully these type of sales become easier down the road. There is many houses lying empty and people wanting to buy. Our system needs to get better to move these along quicker

Rackstar

Buying from the bank isn't for the light hearted. Looked at a place that has planning issues, thousands outstanding in fees for services and a lot more issues. Asked the estate agent about the list of problems, his answer to every question was 'I don't know anything about that, the bank are selling it'. He knew damn well about all the problems and was happy enough playing dumb to them all.

leanonme

We put in an offer on a house two weeks ago, and have not heard back. The sales agent informed us that our offer had been lodged with the bank, and they would get back to us as soon as there herd back from the bank. Today I noticed the add is gone off daft, so I dont know what to think, because we have not herd anything from them since two days after we put in the offer, when they said they would let us know when they hear back from the bank.
Could they have done with another offer without speaking with us?

mickman

leanonme wrote: »

We put in an offer on a house two weeks ago, and have not heard back. The sales agent informed us that our offer had been lodged with the bank, and they would get back to us as soon as there herd back from the bank. Today I noticed the add is gone off daft, so I dont know what to think, because we have not herd anything from them since two days after we put in the offer, when they said they would let us know when they hear back from the bank.
Could they have done with another offer without speaking with us?

herd?

Yes they could have done that but its doubtful . An offer has to be discussed by the bank committee and this takes a few weeks

Callanutd

We bought from Bank of Ireland just over 2 years ago now. I put in the bid at the start of August 2012 and collected the keys on the 10th Jan 2013. I found the process painless enough. The only anxious bit was waiting to see if the bid was accepted. That took 3 or 4 weeks. I bid 20k below the asking price but I know the market has changed quite a bit in the last two years.
As for the electricity we paid 80 odd quid as well and had to get an electrician to certify. Im lucky that one of my mates did that for me for free.