If you are willing to put the work in and pay for its repairs then a repossession will mean a fantastic investment. Before you take the plunge you may want to consider a few things before taking the first step.
What is a property repossession
Repossessions are properties that have had to be repossessed because the homeowner has fallen behind or have been unable to pay their mortgage payments. Their bank or building society has then the right to reposes the property.
Why buy a repossession
Unfortunately in today’s market more and more properties are being repossessed. A repossession can be quite a bargain. If you are willing to put in the work and do it up you could save thousands.
The downsides of buying a repossession
You will have to be prepared to work hard as most repossessions are not in the best condition as the previous owners may not have been able to afford to maintain the property. It may just need the basics, new kitchen, new bathroom or could need damp proofing, new electrics, new lintels as the worst case scenario.
The benefits of buying a repossession
First time buyers can certainly benefit by purchasing a repossession, as it makes it easier for them to step onto the property ladder. Not only can you save thousands by buying a repossession most repossessions have no chain. If you were to purchase a repossession property you could have the keys in a matter of weeks.
Where to find repossessed houses for sale
The bank or building society has a responsibility to get as much as they can for the property. If you were to place an offer on a repossession your offer will be placed in the local newspaper as an official public notice. They do this in hope to attract others to better your offer. Be aware they will still market the property even though your offer has been accepted. You can easily be gazumped by another offer and lose the property if you are unable to beat their offer.