To ask you how much you’d offer for this flat

[Solaran]

We’ve found a flat we love but it needs work doing.

The work it needs is:
New kitchen and bathroom
New floors throughout
Possible replaster

Also:
Removal of a faux fireplace that isn’t in keeping
Build up of two structural walls previously removed (this would put a bedroom back in as per the original floor plan)
Replacement of internal doors and other similar low level cosmetic stuff - everything is in bad condition.

The flat is on the market for £800k. Flats of the same size in the same block sell for about that, some a bit less -£700k ish (some have better views than others etc).

I wouldn’t pay the asking price as it needs quite a bit of work but how low should our first offer be? Is there a general rule of thumb? We could estimate the cost of the work and reduce the offer by that much, but then surely it’s got to be a bit lower still due to the inconvenience of having work done?

A relevant point - it’s been on the market for 2.5 years. It’s really quite fugly at the moment and although could be great (and in a great location) I think the current appearance is putting buyers off. Last time we asked no offers had been received.
Plus with the possibility of the market suffering over the next year, we want to be extra cautious. First time buyers too.

WIBU to put in a really low offer of £6something?

Are there any tactics for getting a lower offer accepted?

The seller has two other properties and bought the flat for £160k years and years ago so I feel like they may be in a position to accept a lower offer.

Help!

@Crankley to clarify, the reason I said how much they paid for it was more about whether they may be in a position to even consider a low offer. For example, if someone purchased the flat for £775 a year ago; clearly they’d be unlikely to accept a low offer and that might put them into negative equity.

[quote Solaran]@Crankley to clarify, the reason I said how much they paid for it was more about whether they may be in a position to even consider a low offer. For example, if someone purchased the flat for £775 a year ago; clearly they’d be unlikely to accept a low offer and that might put them into negative equity.[/quote]
It doesn’t work like that. They’re going to buy somewhere else which will also have risen in price to the same degree. If they’re downsizing, they’re going to want to maximise the money they have left over.

I think you’ll be trying your luck with a 25% reduction, even if that’s what the property is worth in comparison to others in the block. It is entirely possible the owner was advised to advertise at £700k but declined. In which case they’re mad and won’t accept it anyway.

I don’t know if this is something that is allowed - but could you approach the estate agent and say you’re very interested but surprised at the price considering X flat sold for X amount and is in much better condition? I must stress I don’t know if this is considered a major faux pas when buying a house; if not, you might get a feel from the agents whether the owner is just chancing his arm or genuinely believes he/she can get £800k

600k?
I don't think you'll be taken seriously and if that was me I wouldn't accept any further offer from you on principle.

That’s what I think. The vendor is clearly deluded and no one has been prepared to pay near the asking price for over 2years. That doesn’t change the fact that they haven’t dropped the price or accepted a lower offer. Sounds like they’re holding out for a fool willing to overpay.

Removal of a faux fireplace that isn’t in keeping
Build up of two structural walls previously removed (this would put a bedroom back in as per the original floor plan)
Replacement of internal doors and other similar low level cosmetic stuff
That is all incidental stuff to do it how you want it. The property should have been valued to reflect the number of bedrooms it currently has.

Re-plaster: does it actually need it or not? I wouldn't expect a reduction if it was in reasonable nick if you want it perfect, as it was when the property was first built.

Is there something wrong with the floors or do you mean floor covering (wood, laminate etc) isn't to your taste?

Are there any physical differences between this one and others that are around £700k? Does this have a stupendous view?

Just because the property owner paid only £160k years and years ago, that doesn't mean they'll be happy with a cheeky offer just because they're made gains on it over the years.

It’s more likely to be valued on the basis of £££ per square foot than the number of bedrooms per se. That’s the magic formula for checking whether something is over, under or about right.

How much are the "smaller and more accessible in the same area" flats that they might be looking at? I guess is that they wont accept less than that plus all costs plus some more to account for loss of sq ft.

The vendor doesn't give a shit what work you want to do to the flat. They either want to sell badly enough to accept a low offer or they don't. That's all that matters.

Well I agree the original purchase price is irrelevant. Any rise in value is the Vendors profit not yours!

That said, obviously a flat that requires work isn’t worth the same as one in perfect condition. I’m minded to assume that if the Vendors were willing to go down to £6xxk, they would have reduced the asking price long ago.

If you’re happy that the flat will be worth £800k with the essential works completed then I would only deduct the cost of those works from my offer. If I wanted to be taken seriously of course.

You could offer say £650k, but be prepared for the Vendor to refuse to deal with you any further. You may get an absolute bargain - but probably not.

Also have you considered that the top floor flat may have a higher ceiling price? Some people would pay more not no have neighbours living above them!

If it's been on the market for 2.5 years that suggests the vendors are totally unrealistic and will be an utter nightmare to deal with. I am sure they must have had offers before now that they have turned down. Find a better flat, I think!

I think if they were fed up with it they would drop the asking price. The fact they are not speaks volumes.

I think it is over priced from your description of it. But that does not mean you will get it for a fair/good price. The seller may not be desperate or even bother whether he sells it or not - I think that's something that gets overlooked by buyers - they tend to think the seller really wants to sell but he may actually just be ''fishing'' for the money.

how far apart did you and your neighbour purchase your houses? This block of flats is reasonably large and there’s a few flats that have sold over the last couple of years so those sold prices are relevant IMO.

2years is quite a long time though in property prices. Something that sold for 700k would responsibly be priced around 730/40 a few years later. So depending on the difference in the views you have could make a huge difference in price.

Two flats that I was looking at, both same layout, and age..one on for 220 and one for 175, the difference one looked out over the river the other didn’t. Both sold for around 5k less than asking.

[quote Solaran]@Crankley to clarify, the reason I said how much they paid for it was more about whether they may be in a position to even consider a low offer. For example, if someone purchased the flat for £775 a year ago; clearly they’d be unlikely to accept a low offer and that might put them into negative equity.[/quote]
I agree with Alsohuman - it doesn't work like that plus they didn't buy it a year ago did they. You said in your OP they bought the flat for £160k years and years ago which bears no relevance to today's value.

As you haven't answered my question re whether you are replacing the kitchen and other areas because they are falling apart or because they may be a little dated, I assume the latter. If that's the case, the sellers will have zero interest in how much you would spend as you're doing it for cosmetic purposes only.

If it has been on the market for 2 years they are obviously not in a rush to move so the chance of them accepting an offer of £150-200k below the asking price is probably close to zero.

www.rightmove.co.uk/property-for-sale/property-63588291.html

This?

@DivGirl

www.rightmove.co.uk/property-for-sale/property-63588291.html

This?

If it is its perfecrly liveable while someone slowly does it up, and definitely worth more than £600!

@DivGirl good detective work!! If that's not the flat then I'll be very surprised!

Ohhgreat - but she said it was in bad condition?

@tara66

Ohhgreat - but she said it was in bad condition?

What she means is shes a chancer it's dated and not to her liking, I agree it's pretty old fashioned, but I don't see anything worth knocking £200k off for except the length of time on the market.

OP - try thinking about this from a different angle. What do YOU think it’s worth? What would YOU pay as an absolute maximum?

If you think it’s genuinely worth £800k and are hoping they’re desperate and will accept £700k because it’s been on the market for a long time, you’re probably wrong. If they’re desperate , they’d have dropped the price by now.

If, on the other hand, you think it could be an £800k flat, but needs at least £30k of work, then you need to think about how much the hassle of doing said work is worth to you. Would you be pleased to get it for £725k and do the work knowing you’d make a profit? Would you actually be prepared to go as far as £750k, knowing there was probably £20k profit in it? Or do you think the work would be a horrendous ball ache for a year, and that it would still only be worth £775k at the end of it?

Also - do you like this flat and think it could be a good investment? Or do you love it? Let’s say you’d be comfortable paying £725k and no more. If you like it, start at £690k and be prepared to walk away, or for them to tell you to fuck off. If you love it, maybe risk going in at £710k, in the knowledge that you have breathing space in your budget if/when they reject your offer.

If that’s the flat that’s been linked to up thread then that’s not a gut job and is just bringing it up to your taste. The kitchen is dated but serviceable.

I think you’d be lucky if they accepted £750k on that.

OP you sound like the recent buyer we had viewing ours who decided to offer vastly below asking price as they “needed to add an extension to fit their family”. Why they thought we should fund their extension is anyone’s guess?! We consequently told them to jog on and refused them a second viewing as they were clearly timewasters.

By all means make an offer, but if you’re going in that low don’t be surprised if they flat out reject you and don’t entertain any further offers from you.

I love that flat! great detective work, whoever found it. The price is obviously over-ambitious otherwise it wouldn't still be for sale. But it's a gorgeous, unique property.

It's lovely, and very impressed with the detective skills!