A neighbour of mine makes a tidy living buying repossessed properties, doing them up and selling them on. Unfortunately, he won’t tell me how he gets to know about them. I know that such properties often appear at auction, and I’ve observed that many sell for low prices, but do you know how I can get information on these properties before they come to auction?
Best regards, Joyce Monihan
Joyce, sometimes the very best bargains on the market are repossessions by a bank or building society. Whatever the state of the property market, there are always repossessions for sale and certainly they can often be acquired at under market value. Contact all the main banks and building societies direct and ask them to provide information on repossessions in your chosen location. Banks and building societies have, by law, to advertise the fact that they have received an offer for a repossession and that they are intending to accept the offer if no better offer is received within a set period. Such advertisements are often buried in small print in local newspapers, but it is worthwhile checking these advertisements, as a slightly higher offer may still represent a bargain price.
Many banks and building societies sell repossessions at auction and sometimes a forthcoming auction of a property in a particular town is advertised in the town’s local newspaper, but not always. Buying at auction can result in bargain properties. Often an effective way of buying a property at a bargain price is to approach owners of unsold lots immediately the auction ends, or the day after. Most properties have reserve prices and those properties that are not sold at auction have failed to reach the reserve. Quite frequently banks and building societies will sell under the reserve price, sometimes considerably so, the day after the event. In these circumstances a normal time period can usually be negotiated before exchange of contracts to ensure that all enquiries and research is completed.