Can anyone give me some advice regarding offers please?

[Dontbugmemalone]

Hello,

I am hoping someone can give some advice regarding a house and what to offer.

The house is listed at 127k, it's a 2 bed bungalow with a garage. The advert says it has 2 double bedrooms but after viewing it, only one is a double. The house is quite small, has a front (small) and rear garden.

It needs a lot of work, new kitchen, bathroom, carpets, decorating etc. Probably a new boiler too. There are also loads of cracks in the ceiling which could be fixed but it depends on the wood and state of the ceiling. It has an energy rating of F.
We're hoping to go to the office next week to talk about structure etc.

It's located on a quiet street, which has mostly retired residents. It's very close to DS1's new school.

We asked about the owners and the EA said they were deceased and the family were looking to sell. I asked about if they were in a rush to sell and she said she's not sure but most likely they weren't.

A property on the same street sold for 117k last year but the condition was much better and didn't require any work other than decorating.

So, what would be a realistic offer for a house like this? We first time buyers and should have a mortgage outline offer next week.

Sorry for the long post but wanted to give as much detail as possible.

Bump

When we recently bought our house we based our offer on anything structural (so for example we suspected there was rising damp, guttering needed complete overhaul and the flat roof on the extension needed replacing) and having spoken vaguely to a couple of builders knocked 5k off the asking for that. We then got in builders for a proper quote for work after the survey came back with. Few other issues and had we proceeded with that property would have revised our offer at that point. I don't think I would offer lower for decoration or updating etc as that will often be reflected in the asking price already. The market has risen exponentially in the last year so perhaps look at the price index and on Zoopla for estimated values and other local similar condition properties in order to judge your offer. Hope that helps and good luck!

Yes get estimates of what needs doing and knock it off the price.

Thank you for your replies.

I've just looked on the land registry and zoopla website, 2 other houses sold last year other than the one I wrote about. One for 126k (much better condition) and one for 105k (no pictures). Zoopla estimates at 111k.

DH just went to the agency to ask about more details. He got the energy certificate details and it's awful so would need cavity insulation etc. The agent herself admitted that it needs a lot of work and to knock that off the price we would want to offer.

The house has been on the market since November and had on offer of 125k but the buyers weren't able to proceed, probably because of a chain.

I didn't expect to get any knocked off for decorating, I just wanted to give as much detail as possible.

I will sit down tonight to look for rough estimates and try to work out what to offer.

Thanks again :)

Unless you are on a rapidly moving area then it might be worth going in at 100. It's a probate sale so while it's a there and empty it's just something they have to keep secure and habitable. You're ready to go. They can get some money and get the deal sorted. You don't have a chain so it's easy.

Thank you HauntedNoddyCar for your reply. You've made a good point so given me more to consider. I just hope that the owner's family won't be offended

I think if its worth 125 finished, I'd take 2k off for electrics, 5k off for the kitchen, 3k off for decorating, 6k for a new boiler etc, new bathroom 5k. So maybe start at 90k and finish about 105k.

Be cheeky. The last offer was too enthusiastic

Maybe even start at 185k if zooplankton values low

Thanks for your reply Davidhassel- I thought too about the last offer, unrealistic IMO.
Again, you've made some good points and I'll take them into consideration.

I've been looking at other houses and it says some of them are worth 129k but that's not what they've been selling for...so who knows?

Thanks again. :)

You can't tell what their reaction will be. They may be sentimental or deluded about its worth or they may be realising it's on too high and fed up with the whole thing. Their minds might be turning to holiday bookings or they might be reluctant sellers.

Unless you know them it doesn't matter that they're offended and I'd rather have a low offer up front than one which gets gazundered or reduced hugely after a survey.