To offer 80% of the asking price on a house that needs a lot of work

[SonnyHoney]

I will give you the whole low down as I'll get "Why don't you just move somewhere else"

Due to new renters rights were being evicted from the house we've lived in (And love) for the past 8 years. My landlord is selling his portfolio and we've got to be out mid June.

We're really struggling to find a suitable rental . A 3 bedroom house in our area is 2.7k a month plus. There are cheaper properties about 25ish minutes away by car but dodgy areas you wouldnt want your teenagers walking around in .

Over the years we've been saving for a deposit, with the plan to buy in 2ish years from now.

My son is doing A-levels and my daughter is starting secondary school in September. My husband And I both have secure self employed jobs in this area, Our whole lives are here.

I've seen a house on Right move for 389k, It needs ALOT of work but fits the bill. My husband is a surveyor but used to be a builder. We can do it all ourselves over time. The issue is we can only get a mortgage for 340k, We have a 50k in savings though.

Obviously we need to pay stamp duty, then the cost of the project itself which we can do as we go along. This will leave us with no savings though.

Would it be reasonable to offer 80% of the asking price ?

Put in the offer.

The housing market has slowed down and people are reluctant to take on properties that need a lot of work due to high tradespeople costs.

If you partner is a builder/surveyor then it makes sense to keep looking for properties that need work but match your budget so keep looking even if you make that offer for alternative.

Also it might be that the seller says no to your offer at first then realise that no one else is willing to take on a project and gets back to you in a few weeks...

You can offer 50% if you like. The less you offer the more likely you are to be rejected. But you can negotiate further and there's no rules about it. You are not unreasonable to offer any amount you are prepared to pay.

How long has the property been on the market? If it’s sometime they might consider an offer, you won’t know until you try. Just bear in mind that materials are very expensive right now, even without the cost of labour. Another thing to think about is where you will live when the building works are going on, as some are more disruptive to family life than others. Good luck with your move.

Is the property occupied? My parents once got a 50% reduction on a house that needed a lot of work because the house had been standing empty for 3 years and had to have work done to be even habitable again and the owner just wanted it gone and this was the first offer she had recieved. If it's a landlord selling up, probate property or the owners have already moved out you're more likely to strike a deal than a property where they're not in a rush.

Offer what you want. They may take it they may not. Many places that need work the owners are aware and have priced knowing that - either taking the condition into account or still wanting top dollar.

your affordability is none of their issue though.

Nobody can reasonably answer this on here. We don't know if the house has already been priced with the work in mind (it doesn't matter if your husband would do or it the king himself would... pricing with work in mind is pricing with work in mind) and we also don't know what kind of work - "does not have working heating and has exposed plasterboard and floorboards" is very different to "the kitchen hasn't been updated since 2003"

Honestly in order for posters to answer they need to know:

• postcode
• how many beds/baths/receptions/parking
• what kind of work it is that you think needs doing

That being said if that is all you can afford then shoot your shot and find out...!

Definitely put the offer in. Don’t forget that you’re in a great position to buy. No chain! This is very attractive to a vendor.

The vendors will probably think you’re unreasonable but if that’s what you can afford, it’s what you can afford. They either say yes or no.

To answer your question you need to do your homework. For a wildly overpriced property that's been on the market for 3 years and the sellers are desperate to sell they might accept. For a very well priced property new on the market, no. Why don't you ask the estate agent or the sellers if they would accept an offer to test the waters?

Put in offer. Also have you offered to buy your rented house? I would also do that.

She’s answered this - rental house is too expensive.

Lots aren’t though. People are pricing at market rent or just below and it’s not even close to enough to offset the works. It’s hard to advise without knowing what op’s market is but no harm in asking.

This.

They may come back with a counter offer of not much more and you can then look at if there isn't possible way you can meet it.

What would be the asking price of a very similar house in the same location but not requiring any refurbishment work? That's the question you need to research.

If I were selling a house for renovation I would market it at my absolute bottom line price and make that clear in the sales particulars, just to avoid rounds of tedious offers and negotiations. The vendors of the house you like might have done this?

You’ve probably already done this but have you really tried everything to get a higher mortgage? Increase the term etc etc

In the current climate I’d say give it a go. How long has it been on the market for?

Seriously move further out. It will be cheaper. Yes you have to drive for a bit longer etc.

Noone here can tell you really. What is the market like where you live? How long has the property been on the market? What are similar properties selling for? Is that the max you're willing to spend? Do you love the house? The sellers may snap your hand off or may decide you're a CF and refuse any higher offers from you believing you will try to knock them down at the final hurdle.

It's worth a shot. I'd probably offer at least £325 though.

Definitely put in an offer. It's a buyers' market at the moment as most people aren't moving.

As someone who bought a house that needed tons of work, we paid less than offered and - a decade on - I still think we overpaid.
Make your offer- what’s the worst that can happen? Properties are not moving and only someone like yourselves are going to take on sth that needs loads of work. It’s the pain of living with the reno as well as the cost of materials.
You are also chain free. This is really important. Wishing you all the best with this

If you don’t offer, you definitely won’t get it.

If you do offer, and it’s the most you can afford, then you might get it. You might not, but there’s significantly more chance than if you don’t offer at all.

The condition is priced in already. People aren’t usually receptive to 80% of asking.

But your DH is a surveyor/builder so it sounds like this would be a good buy for you.