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 have 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 there debt is not being repaid often where the borrow has fallen on hard times, death or divorce etc The bank/building society have 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. And 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. When looking at these properties they might feel a bit cold and unlived in 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 10-30% off the market price. 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.