Receiver Sale

MintyMagnum

Hi guys, just wondering, do receivers sales generally go the asking price, or under (or over). Thinking of bidding 25% below the asking. House is small, urban, let for a long time, shabby, cracks & water marks in ceiling, wood windows, overgrown garden that sort of thing. But nice quiet location with a 'good address'.

spaceHopper

Don't just low ball for sake of it. List all the problems and add up what it would cost to bring it up to how you want it then factor in where you would live while it's done, there or have to move out... add a dose of cost for the hassle and risk that work could cost more. Take that off what you think the house is work if it was done.

Make an offer base on that, if the EA want more give them the list and let them explain why the house is wort more. All that assumes that you are the only bidder and nobody else comes along.

riclad

IF a house is sold by the estate agent its the same as any other house sale,
if at auction there,s a reserve price .
I,d say it,ll cost 15k plus to fix it up and bring it to a livable state ,going from your description.
IF your offer is accepted get a full survey on it.

riclad

IF theres serious faults,
eg rewiring, dry rot,major problems ,
it might be hard to get a mortgage on it.
wood windows are standard in houses over 30 years old.
Builders ,diy experts usually buy old house to modernise with cash or a small loan.
Very old houses ,tend to have cracks in the plaster ,
and the walls ,
whether this is a serious problem would need a structural survey to reveal .

Quorom

Receivers have a duty of care to the distressed debtor as well as the bank, so that they cannot sell the property too cheaply, the bank ( depending on the state of their finances ) will usually accept 10% to 15% below market value as they may not have perfection of title, security documentation issues, etc. and they also want a quick sale so they can get the monies received from the sale back on their balance sheets and working for them.

handlemaster

OP have you made an offer yet ?

riclad

IF you mean by perfection of title ,the bank may not have all the old original deed,s or documents ,
it may reduce the price a bit.
I think the price may be low cos,
the house is old, in bad condition .
And may need alot of renovation ,
rewiring, new roof tiles ,etc to bring it up to modern standards .
IF its in a good area ,eg drumcondra , there will probably be 2 or more
bidders on it .