Making an offer on a repossessed 2 bedroom mid terrace house
We are currently looking for an additional property to add to our Buy to Let property portfolio and have seen a 2 bedroom, mid terrace house for sale with Clyde Property at offers over £45,000. We know the area very well where the property is for sale, we used to live approx 200 yards away from it a few years ago. We made a appointment to view it on 3rd September 2013.
The property had an open viewing, and the were several other people looking at the same time. The property was approx 15 to 20 years old and the decor was very much stuck in the 80’s. The bathroom had a particularly disgusting looking pink suite:
The Kitchen was in reasonable condition:
Although the property needed some work, we decided to make an offer. Mainly because the monthly rental would be around £425 – £450, which would produce a healthy yield of over 9.4%, if we can get the property near to the overs over £45,000 price.
We emailed our solicitor the very next morning saying “It’s looks like it is a repossession and there were several people viewing it on Tuesday when we went to see it and according to the person showing the property, it was also busy at an open viewing last Friday. Can you please make an initial bid of £45,500, just in case their seller is keen to make a quick sale?”
It’s always worthwhile making a quick offer on a repossessed property. Normally the banks are just looking to recover the outstanding loan amount and the first offer over the asking price sometimes gets the property.
However we also told our solicitor that we “think it may go to a closing date. Let’s see how the negotiations pan out. The home report values it a £50,000, so that will be probably be the upper figure other parties may go to.”