There are many good and bad points regarding repossession properties. Repo properties as they are sometimes referred to are those where the bank or building society has taken possession of the house/flat with a view to selling the same to repay the debt owed to them. The lender will repossess where their debt is not being repaid often where the borrow has fallen on hard times, death or divorce etc The bank/building society has a responsibility to get as much for the property as it can, however despite this they will want a quick and speedy sale, often imposing strict exchange deadlines. Yet while most sellers spend months beautifying their bolt holes, waiting for the right offer, banks often just price them cheaply to sell quickly.
The downside is these properties often need a refurbishment. Best case is they might feel a bit cold and unlived in. Repossession buying is most suitable for those looking for an investment and willing to do up ramshackle properties. Be sure to factor in the cost of repairs, and take a builder along to the property for some estimates. Often the property will need an element of refurbishment. Worst case is the previous owner could have stripped out all the fixtures and fittings before handing over the keys.
It’s possible to pick up repossessed or distressed sale properties at up to 30% off the market price. Usually, the more work they need, the bigger the discount is. For those willing to put the work in, both on research and repairs, these can represent some of the best buys on the market. In theory, buying repossessions, or as agents prefer to call them, corporate sales, can be a lucrative property investment strategy enabling you to buy at a bargain price, renovate it and sell to the open market at a decent profit.
If you are considering buying a repossession property PCS Legal can ensure that you get the highest quality legal advice. The costs will not be any higher than for an ordinary purchase and you can be sure your conveyancing is dealt with the highest standards by a conveyancer who will have handled many similar purchases.