If you’re looking to buy a London estate, you may be able to enjoy a reduced price when purchasing a repossessed property. However, buying a repossessed property comes with its own set of pros and cons that you’ll want to take into consideration.
You can usually buy a repossessed property at several different stages. Sometimes the estate owner will sell a home that is currently under threat of being repossessed by the bank, but that isn’t repossessed quiet just yet. You can also purchase after the bank has taken actual repossession of the home, in order to recover overdue debts. Regardless of which stage you buy the estate at, you’ll be purchasing from either the actual homeowner or the lender, or possibly at an auction.
The bonuses of purchasing a repossessed London property include receiving a London estate at a below market value price. It’s also a great way to go if you’re wanting to purchase in a hurry, as both the homeowner and the lender are looking to be through of the entire mess, and will often get you out the door and on your way as quickly as possible. You can find just about any kind of city estate when browsing repossessed properties, from luxury estates to first-time homes to letting properties. Typically, you can expect some type of maintenance needed, but this ranges from small issues to large issues. This can be a pro, however, because, depending on what exactly the maintenance needed is, you can use the opportunity to increase the estate’s overall value
However, there are also quite a few cons to buying a repossessed property. For one, if you’re going after a popular estate that someone else (or multiple someone else's) has their eyes on, you may actually end up paying more than what the property is worth. This is not the only way you may end up paying more than you should. Occasionally, greedy sellers and lenders will attempt to recoup all their losses on a repossessed property, and sell it at a break-even or even profitable price. Some sellers may also want you to purchase the estate in cash, and may not offer you any of the normal perks of buying an estate, such as a free inspection or time to do a valuation. They most certainly won’t offer to do any repairs themselves. This leads to another con – while we did mention that some repairs can be a pro, as it can help you increase the overall estate’s value, occasionally the repairs needed will be so extensive that it’s simply not worth it. These extensive repairs can be caused either by the previous owners themselves, normal wear and tear caused by a home being empty or even looters and vandals taken advantage of an empty, unwatched estate. Beyond human issues, mold, insects and rodents also often take up residence in repossessed properties that have remained empty.
Wondering whether purchasing a repossessed property will be a pro or con for you? Contact one of our qualified Morgan Goldsmith agents to find out more.