What offer would you give for a house that needs complete renovation

(30 Posts)
Heavywheezing Wed 01-May-13 18:40:45

We went to look at a house today.
It needs a complete renovation. Bathroom downstairs, new kitchen, new boiler. An old person had the house before.

It's on the market for £400,000 which for us would be too much to pay but it needs £30,000 minimum spent on it.

I just wonder what would could be a realistic offer of this house

house

myron Thu 02-May-13 20:09:28

From the fact that it has generated quite a bit of interest as well as offers within days of going on the market, I would say that deducting the cost of renovations from the asking price is probably an overly optimistic strategy. Saying that, you never know unless you try! You might get lucky and everyone else is not actually proceedable.

Mintyy Thu 02-May-13 10:57:30

I think most agents, within reason, value a house taking into account the amount of work that needs doing to it.

I am thinking of putting my house on the market. It needs another £10 - £20,000 spent on it so I would bear that in mind with the asking price.

Sorry i think that house is just too expensive for you. Given it's age and lack of maintainence I think you could be looking at a massive amount of work and at the end of it you'll have a pretty but small house in presumably a nice location.

Heavywheezing Thu 02-May-13 10:41:24

Well we have sold our house, we are in rented accommodation in the village that the house is in but given the probable selling price + work needed during to it= out of our budget.

I haven't viewed any properties around here. There's been none I'd like to buy.ah well!

throckenholt Thu 02-May-13 09:23:19

Equally a probate sale gives you more wriggle room. They are trying to maximise the value but have a time scale that a normal private seller might not. They may be happy to negotiate over the summer, but with a view to having sold before the cold weather comes - you don't want to have to deal with an empty house (potentially away from where you live) over the winter.

If you are interested take a builder round to give ball park figures for what is visible now. If that seems reasonable then go for a survey to try and cost up unforseen stuff. If you need a mortgage then you will have to have the survey anyway before they will give you the money. At that point you finally decide what you are willing (and able) to pay - then you make a firm offer (lower than you final price) and see how they react. Seems reasonable to tell the vendors that would be your likely path. If there are others around willing to pay more than you - then fine - they would pay more and you wouldn't get it anyway.

By the way - I know this from the other side having recently gone through selling my mum's house.

myron Thu 02-May-13 01:30:05

If you don't know/are hesitating, you haven't viewed enough properties to know the local market. I agree with the PP, it's been on for less than a week, had a few viewings out of which, there are already a few offers. I think the plot/location is obviously attractive and I would hazard a guess that it won't sit on the market for long.

I have been in this scenario twice. The 1st time, we were naive to believe that as rare no chain buyers, the vendors would fall over themselves with an offer from us. We offered 10% under asking. The house sold for asking price to another no chain buyer. We kicked ourselves a little after that since no suitable house came up for sale since on that road (prime location & large plot) and it's been 3 years.

The 2nd time came approx 18mths later and was even more of a doer-upper and priced at a stamp duty threshold. Due to plot & location, it already had 3 offers in before we even viewed it on Day 2. DH & I decided not to mess about with making an offer a few thousand less than asking and risk losing such a great house (18mths of multiple house viewing later - we KNEW a house like that didn't come up often - 35 yrs to be precise). We then had to prove that we had the finances which we did the following day and then we had to wait while the seller made a choice of whom they wished to sell to from the 3 asking price offers! We were dreading the thought of it going to sealed bids which has happened before wrt to other houses we viewed but didn't partake in.

Are you proceedable? You have little chance if you're not.

NonnoMum Wed 01-May-13 22:39:26

I'm not an expert...

BUT it seems to me that it doesn't really matter what state a house is in; it's the plot and the location people pay for.

If you want it, I'd offer £400k. The executors don't care that you want it pristine and with the latest bathroom suite...

Heavywheezing Wed 01-May-13 22:34:22

Oh Wendy please pm me. I think it would be useful to take a builder and quite frankly a reality check.

I think If he said £100,000 then £350,000 plus that we could not afford it unless I bumped off my pil.

greenformica Wed 01-May-13 22:23:05

What would it sell for fully done?

wendybird77 Wed 01-May-13 21:57:23

I think your budget is really optimistic, we live not far from there and have just spent more than that (easily) on similar, maybe less, work. If it hasn't been on for long and there is loads of interest then the vendors will probably want to hold out a bit. However, if you are in a good position to move quickly then I would just put in whatever you think it is worth (bearing in mind the cost of doing up and what it would be worth when you are done). Take a builder out to give you a quote for the works before you put an offer - we did this with a house and it made us walk away very quickly! I know a good builder if you want a recommendation.

Sausagedog27 Wed 01-May-13 21:52:30

That is a lovely house. Looking at it with the fireplace and floorplan it really could be very very old- you will need to be prepared to take that on with that in mind. Things like damp etc won't be a simple chemical injection type fix. I think you really need to love it to take it on.

Stunning though!!

lalalonglegs Wed 01-May-13 21:41:12

I think you have to work out how much similar houses that don't need renovation cost and then work backwards allowing for costs and plenty of funds to compensate for your time and effort (not suggesting you do the work but even running a build is hard work).

iiiiiiiiiiiiiiiiiiiiiiiii Wed 01-May-13 21:32:50

What a lovely house.

Sorry no advice blush

MmeLindor Wed 01-May-13 21:07:25

£30k is very optimistic, I would say.

I would be v wary of what you could uncover once you start the work. We are starting complete renovation of an ex LA house next week, and if we were to go with everything we really wanted, could easily have spent £50k. And that is nothing structural, no damp or anything major.

MisForMumNotMaid Wed 01-May-13 21:07:24

Okay. Car park wouldn't be so much fun. I was thinking of a lovely garden I used to sit in that you could look out from across the distant airport runways.

Heavywheezing Wed 01-May-13 20:56:19

It's what they have planning permission for.
Right at the end of the garden will be the car park.

But it is lovely.

MisForMumNotMaid Wed 01-May-13 20:00:30

Have you visited it? Only I used to live by Gatwick airport, amongst many other places, and some of the houses right by the airport were fairly quiet yet some of those 10 minutes away were really noisy as on flight paths.

Heavywheezing Wed 01-May-13 19:33:11

I really love that house mis the only thing it backs onto the airport which is being extended.

But a pink house is so pretty.

LifeofPo Wed 01-May-13 19:26:42

Message withdrawn at poster's request.

MisForMumNotMaid Wed 01-May-13 19:14:38
Heavywheezing Wed 01-May-13 19:12:37

It's really nicemisfor

Shows what could be done, I suppose. But too far from motorway, and my son's school

Heavywheezing Wed 01-May-13 19:09:18

It's been on the market a week. It's in probate too.

I only sent to see it today, so no survey. They have had a few offers too.

MisForMumNotMaid Wed 01-May-13 19:08:57
throckenholt Wed 01-May-13 19:07:39

meant that to be £350-360K

throckenholt Wed 01-May-13 19:05:56

It depends on how much it would be worth once the work has been done. The house should have been valued in the state it is in now. Ie - if it is obvious the windows are rotten, and the boiler is ancient - then you would expect that to have been taken account of in the asking price. Having said that offering 10% below the asking price isn't out of the ordinary - so say £36K.

Have you had a survey - that would hopefully pick up the non-obvious jobs that need doing.

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