AIBU to offer 15-20k under asking price

[HappyDreamer]

We are first time buyers with no chain looking for a 3 bed house.

We viewed one today asking price is £200,000. It has a new roof and decent windows. However the kitchen needs re-doing, as does the bathroom at some point. All rooms need updating by stripping, plastering and decorating as has been in the family since the 60s.

The house has a parking space for one car and is semi detached.

I have looked at other houses in the area that have sold recently and a few that are more modern with a decent kitchen and bathroom are selling for max 220/225.

Son is selling as dad has sadly passed and son is moving away next month and wants to sell asap.

is it unreasonable to offer 15-20k less at 185/187? The kitchen will cost around 10k plus the bathroom and other things that need doing.

You can offer what you like, of course.

Its not unreasonable to offer, and its not unreasonable to decline, you'll never know unless you do it. Can always increase, but you cant ever decrease!

Let’s face it everyone knows people will move quickly when a house is going through probate.
Ultimately, you can offer what you like and the seller can just say no

If its £200,000 and ones which have already been updated are selling for £225,000 I would say its has been priced to reflect that modernisation is required.

You could offer low, the response is going to go one of two ways.
Just be prepared that you may have to increase the offer.

I agree that it’s marketed to reflect the work needed.

Offer what you want, that’s up to you. They might say yes or they might take offence and not sell to you for any amount.

£200k for a house that needs £20k of work would be worth the same as the other houses that are already done up, so why would the seller accept such a low offer as you’re proposing? Sounds fairly priced to reflect the work needed. You can offer whatever you like, but if you go in too low you’ll look like a piss taker rather than a serious buyer.

Why would you offer lower if, as per the research you’ve done, the price of the house is already reduced to reflect the fact that the kitchen and bathroom need re-doing? What else needs re-doing? The whole house needs to be re-plastered?

No harm in trying but if the price seems fair, expect a no. If they want a quick sale you might get lucky? If you really want the house and you know it’s good value for money you might piss them off enough to accept from someone else as they think you’re tight and will try to reduce later on. It’s up to you, no right or wrong.

I offered 20 K under & it was accepted immediately. You can offer what you want, but they can say no if they want.

Great advice. Most buyers may consider 10% or even slightly more for a quick sale (no chain etc.), so you would be at £180k, or even £175k. You should just phone them asap and ask them, what is the worst that can happen? I also agree with @FuzzyWolf that there is a price point that can offend the seller in some circumstances and they won't engage at any price. A good agent can usually smooth some of this over with the talk that you are first time buyers, new to all of this etc.. Massively also depends on the market - and the EA is working for THEM not YOU, so want the best price. If there are better offers out there, you will be outbid anyway. If not, you are in with a chance. But you have to throw your hat into the ring.

I marketed my late relative's house at 20k under the market price because it needed some updating. 3 bed detached. Estate Agent held an open house on the Sunday. By Monday I had 8 offers. The two offering below the asking price didn't get a look-in.

Why do you say all the rooms need stripping of plaster? Unless it's in a poor state, damp or it absolutely stinks. I think people have come to think this is the norm after watching Homes under the hammer, but honestly if it's basically sound, and you're not doing structural alterations, just redecorate!

I have lived in houses of all ages, Victorian, 1920s, 1960s, and the only times we have had to do this was once in one attic room with severe water damage, and after moving internal walls.

You’ve got your discount as the price is that much lower than similar houses that have what you want. Buy one of those rather than squeezing more money out of someone who is dealing with the loss of their father.

Also, you don’t need to replacer walls just to decorate. It’s only necessary if the plaster is blown

A lot depends on the market. Some towns are v slow for property, but I'm in Manchester and good houses (even ones that need modernisation) are still selling super quick, a lot going to best and final.

Sounds like it's been priced to sell , you've done the maths yourself. I can't see an offer below 190 being entertained.

While you are justifying costs a builder will step in at 190 - 195 renovate the whole house for less than 15k and put it for sale in a few months for 230

Buy one of those rather than squeezing more money out of someone who is dealing with the loss of their father.

come off it @Lurkingandlearning the OP doesn’t owe this person anything for their loss!! Why do people do this on MN.. you’re trying to make them feel bad?!

It’s a bidding process.If no one else bids and the seller accepts the £20k under bid, then the OP hasn’t “squeezed money” out of them - that’s what the market said it was worth.

honestly! I had to say it, we need to stop making people feel bad on here for no good reason

Has it just come on the market? If so I think they'll be unlikely to accept £185 at this stage. If it's been on the market for a while and you've only just viewed it then it's more likely.

Buy one of those rather than squeezing more money out of someone who is dealing with the loss of their father

What a load of nonsense!

Look at the market OP, in many areas it’s a buyers market & reductions are happening frequently. It’s quite normal to offer under.

New roof, rewiring, kitchen, bathroom, complete redecoration will cost way more than 20K - probably more like 50K.
Plus the risk of finding other problems in a house last renovated in the 60s.
I'd probably start 30K below asking & explain why. Be prepared to negotiate up but have a hard ceiling price- building & renovation costs have skyrocketed in recent years. You may not be able to live there during all of the work and you have to have the cash to pay for it.

It already has a new roof and where does OP suggests it needs rewiring?
decoration is personal taste and sounds like it’s already priced to reflect it needs a new kitchen.

OP I’d discuss with the estate agent that you’re looking to make sn offer but below asking price and sound them out.
id probably go in at £190k with the expectation the owner will want to negotiate up a bit more.

It sounds like it’s being priced appropriately if houses that are done up sell for 20k more. You can offer what you like, and the seller can either agree or disagree. However you can’t go lower once you’ve offered higher, so start low and be prepared to offer up.

Yabvu. The house will be valued in it's current condition. Taking off what it would cost you to upgrade it is very very cheeky & an insult to the seller. Please don't do this.

It has a new roof. So therefore it's already had money spent on that.
How long it's been on the market will be a big factor. If it's only just come on I'd say no but if it's been on a while then they're more likely to accept.
Don't worry about offending anyone. Offer what you like but don't be surprised if it doesn't get accepted.

I sold a probate house. Priced to sell as it needed work. Got an offer in a couple of weeks considerably under and i said no. They came back a few days later with a better offer, but I still said no and then they offered asking price. If it had been on a few months I would have accepted.

Make your offer but be prepared to go higher if it's the house you want and the asking price is still in your budget as you may end up paying that

I agree with PP that it sounds like it's been priced to reflect the condition, but you can of course offer whatever you want. It depends on the area, but where I am, "do-er uppers" or partial do-er uppers go for more than just the difference between the cost of the work and a house already done. This is because some people are willing to pay for the opportunity to put their stamp on the work, ie have it done exactly as they want as opposed to living with the previous owner's design that doesn't really justify changing because it's reasonably new.

Depends how long it has been on the market?