Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

House on at £125,000 what would you offer?

61 replies

ohhifruit · 13/01/2014 10:25

I've been lurking here for a really long time, sorry for jumping in with a question.

We are FTBers and viewed a house local to us which is on at £125,000.

The house has:
*3 beds (two are small but this can be transformed by switching a bathroom and bedroom around when we'd come to a point of redoing the bathroom)
*Upstairs bathroom (many in the area have downstairs bathrooms)
*3 reception rooms (it is usual in the area to have 1 reception room and for the back room to have been converted into a kitchen/diner)
*Extension which contains kitchen, w.c. and utility room.

  • Converted garage in the garden.
  • Nice area within reach of train station, 2 good primary schools and within a walkable distance to DH's workplace. *Usable cellar space *Potentially usable loft space *High ceilings *Light, bright rooms

It is an end terrace which had substantial extension/addition before the area became a conservation area (and development in the area became difficult to obtain permission for) and as such is the only 3 bed, in the specific area we want to buy, under £150,000.

All other houses on the street are two beds and ones which have sold in the past 10 years have been refurbished to a high standard. These types of houses have sold recently for around £105,000 - £115,000

Reading all that you think "£125,000 is great, offer the asking price" however:

*The home is owned by an artist who has done some rather strange DIY which whilst not damaging to the bones of the house would be a pain to change and correct. There are random lumps of wood drilled into the wall, painted murals, pine ceilings, slithers of thin tiles on the floor inbetween the carpets of rooms and around light sockets.

*Most rooms have those odd polystyrene ceiling tiles which I assume are dangerous?

  • At the end of the extension the utility room opens out on to the garden and when I went out of the door I ran my hand down the wall and noticed it was soaking. The wall didn't feel sodden or permanently wet, it did however feel like the rain was leaking in from above and once outside we noticed the very old roof on the extension portion of the house is in need of either a great deal of work or complete replacement and obviously the rear wall would need to be fixed.

*The garden has warped decking which would need to be ripped out quickly as it was very slippery.

*The garage space which has been converted into an office has a very strong smell of damp, so this will need looking into - I suspect this might have something to do with the shockingly bad and soaking wet decking.

*We would need to replace kitchen and bathroom within 12-18 months.

*It has been on the market since last May and the sellers have not started looking for a house.

*We can move FAST, have a mortgage in principle and a good deposit, does that put us in a good position?

My heart says "BUY IT, GIVE THEM WHAT THEY WANT", it's the only house for miles within our comfortable price bracket which has more than 2 bedrooms. Finding something like this is near on impossible but does this mean we should overlook the amount of work we need to do it?

My FIL suggests going in first of all at £112,500 which is 10% off the asking price with a view to spending no more than £120,000. But because it is so different and properties like this don't crop up often do you think we should be wary of taking 10% off the asking or is it true a first offer should be insulting?

I love it and DH thinks it has "good bones and amazing potential", I could see us living there for 10-15 years.

HALP!

OP posts:
ohhifruit · 13/01/2014 10:25

Oh jeeze, sorry that's long.

OP posts:
annieorangutan · 13/01/2014 10:26

Depends on price off others in area. That would be 200k + here

bishboschone · 13/01/2014 10:29

I would offer £110,000 and work up... Tell the estate agent you will go up and to tell you if anyone else offers first .. You can always go up but not down .

ohhifruit · 13/01/2014 10:31

annieorangutan

The area is in the NW of England. It is a nice area with, circled by a not so nice (although not grim or dangerous area) which has a lot of 3 bed houses for £120,000-£145,000 which are selling with around a 5-10% reduction after 6-9 months on the market.
The really nice area in the same town, which is about 2 miles away has 3 beds going for £245,000+ and selling in about 3 months for asking price.

OP posts:
ohhifruit · 13/01/2014 10:43

Bishboshone would it be wise to tell the EA the reasons for offering the lower price? I.E. The new roof etc.

OP posts:
annieorangutan · 13/01/2014 10:44

You can try they can only say no

rpitchfo · 13/01/2014 10:48

Offer 125k. Because that's what my house will be going up at lol.

BrianTheMole · 13/01/2014 10:48

I would try 110, explain the reasons why, and work up.

ChilliQueen · 13/01/2014 10:56

Why hasn't the seller started looking for a new home yet? Quite important.
If it's been on since last May, ask EA if any other offers have been refused, or if anyone has had a survey and then changed their mind (not sure they'll tell you, but do ask).
TBH depending on what EA says has happened before with offers (if have been any), I'd go with a lower offer.

PrimalLass · 13/01/2014 11:05

Has it been on at 125 since May, or has it recently had a price change?

ohhifruit · 13/01/2014 11:06

Thanks for your replies everyone.
ChilliQueen EA says they aren't looking until they have an offer. Is this common?
They accepted an offer in September (EA didn't say what figure was involved) but the buyer didn't arrange for a survey and they didn't hear from them again. Which is odd. I'm not sure if it is a case of a problem with the house, finances at their end or that folk are just odd.

OP posts:
ohhifruit · 13/01/2014 11:06

PrimalLass I couldn't get the EA to tell me that. Is there a way to find out?

OP posts:
HaveToWearHeels · 13/01/2014 11:09

Depends on how quickly the market is moving, how much you want the house and what you would be happy to pay.

Lucylouby · 13/01/2014 11:12

Don't forget the ea works for the seller. Their fees are also based normally on the final fee, so they want you to pay as much as possible. I reckon telling them you will bid more means you will have to bid more. They will tell the vendor you have indicated you can go higher so the bids will be declined waiting for a higher offer. I have no idea what to offer though. We started £20000 (10%) lower, but they knew what they wanted so we had to go up, we got the house for 5,500 less than the asking price. Which is still under what we were prepared to pay.

ohhifruit · 13/01/2014 11:13

Honestly Havetowearheels, I would pay £125k if pushed. However I want to move quickly (baby due in May) and they have yet to find a place. The market in this v small (but apparently desirable) area is moving pretty slow. Nothing of any size under £200k has sold in this area since Oct.

OP posts:
DelGirl · 13/01/2014 11:14

Id start at 110 and state the problems you'd need yo fix, not just cosmetic. Dont tell the EA you'll that would be mad imo. Has it been reduced since it went on the market?

HaveToWearHeels · 13/01/2014 11:14

OK just read your other posts sorry. Go in at 110k and work up if you need to. I take it there are no other interested parties ? If not you have time to negotiate. Round here you would be paying 135k to secure it, the market in mental.

DelGirl · 13/01/2014 11:14

That should be dont tell the EA you'll go up!,,

cupcake78 · 13/01/2014 11:19

Well I'm in a similar situation and can tell you that the market here is speeding up fast in the last 2 weeks we missed out on 3 houses because others have gone in straight at the asking price. We've been looking for 2 years and people are moving very quickly compared to the last few years!

Dromedary · 13/01/2014 11:20

I'd offer £115K, as under that is a bit offensive, and it sounds a bargain. We don't live in the south east but you'd barely get a kennel for that price. But talk about whether they would be prepared to move into rental.

cupcake78 · 13/01/2014 11:20

A house is only worth what you think its worth. Assess level of interest, expect your first few offers to be turned down and have your limit set in stone!

TeacupDrama · 13/01/2014 11:21

I would offer £110,000 do not say you can offer more say something like
" we like the house but it requires a lot of work and there are unresolved damp problems so subject to survey we are offering 110K which we believe is a fair price considering the above, we can move fast and would like completion can happen within 10 weeks our mortgage is sorted and we have nowhere to sell ( if true obviously) also we would want house taken off the market straight away

do not pay over the odds if they refuse offer and come back with 2120K reoffer at 14K otherwise go up in 2k intervals

goofd luck

TeacupDrama · 13/01/2014 11:22

if it has been on market since last may it is overpriced

Tiredemma · 13/01/2014 11:24

Its overpriced it its still on from last May

Someone on here told me that if you are not embarrassed by your offer then you are not offering low enough!

Id go with what others have said

110k initial offer

ChilliQueen · 13/01/2014 11:25

When you put in your offer to the EA, say we've offered this amount due to the fact that blah, blah, blah all needs doing. The EA will recognise the kind of work the house needs to be more to everyones taste/updated etc. And yes, previous posts correct, the EA works for the seller and will want to sell property for as much as possible to get as much commission as possible.
The seller must have an idea of where they want to move to. Normally people put their house on the market for a reason, because their up/down sizing or moving into care or out the area. Obviously the seller can't go sticking offers on other properties until he knows what's happening with his, but hopefully he has started looking about. If the market is as slow as you say it is where you are then I suggest you say to the EA, that you're ready to go (assume renting/parents?), want to be in ASAP and to ask if the seller would get out quickly and rent while they look for a property. Most people selling a home would be very keen to have an offer from a FTB/renter. Makes the chain so much more bearable! And if artist gets out and rents, then you've got no chain at all.

Swipe left for the next trending thread