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Original poster

What would you offer?

34 replies

Alexalee · 03/09/2019 16:59

www.rightmove.co.uk/s6p/80790425
Needs a new roof, re rendering, all new windows
Internally it needs taking back to brick, so everything doing
Builder reckons wont see any change from 50k, that's with no extensions at all, just refurbishing it as is back to a decent condition
Value when done will be absolute max 450k from what we can tell for the area, maybe a bit less

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Original poster

Alexalee · 03/09/2019 17:00

www.rightmove.co.uk/s6p/80790425

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Rainbowhairdontcare · 03/09/2019 17:05

I'm thinking you really don't want to pay more than £380k. So either offer 370-375, or make an only offer of £380

NomDeQwerty · 03/09/2019 17:13

Don't know the area and I'm being no use to you but the front of that house is very appealing. It looks like a happy house.

Original poster

Alexalee · 03/09/2019 17:30

I agree with you nom... shame render is all blown and wood warped so will need to be taken down and redone.
It's a probate sale but I think it's been empty for a few years as the windows have disintegrated and the roof has leaked and destroyed the bedroom ceilings

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BubblesBuddy · 03/09/2019 18:06

That is a very attractive house. Such a shame about the condition. I would offer £375,000. A builder hasn’t snapped it up so it’s not likely to return a quick profit.

Very few recent sales in that road. So difficult to know what it would be worth. However it’s attractive but no garage. If you have £450,000 available, can you find something in good condition? Not sure I could face that amount of work! I would definitely need an incentive and there might be more wrong than you think.

Original poster

Alexalee · 03/09/2019 18:40

There is a house that sold 4 doors up 9 months ago for 463500 but that had a 200ft2 single storey rear extension with a huge kitchen and was in move in condition, so 450 might be too generous a figure for this one.
I love the look but think I lack the energy for a 6 to 9 month build, but at least wouldnt be living in it. My thinking was 350k max so a bit lower than a few of you think

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lastqueenofscotland · 03/09/2019 20:02

It’s been on Less than a week I wouldn’t be surprised if they didn’t expect an offer at this stage

BogglesGoggles · 03/09/2019 20:06

I wouldn’t offer more than £350

Karcheer · 03/09/2019 20:22

I would say about £350.

If a builder says £50 you’ve got to assume at least £75.

Original poster

Alexalee · 03/09/2019 21:13

It's been on for over 6 months... was under offer for the last 3 months but the buyers mortgage fell through

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Original poster

Alexalee · 03/09/2019 21:14

Karcheer that was my thinking... and then if prices drop by 5% I'm in negative equity after an exhaustive 9 month build

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Bluntness100 · 03/09/2019 21:21

I'm struggling to understand why folks are coming in with these low ball numbers. I'm confident you don't stand a chance at the numbers being suggested.

It's on at 400. Will cost 50 to totally redo it. Value likely to be 450 when done. Hence it's asking price.

I wouldn't go in less than 390.

As for negative equity. Unless you're in it for the short term, it's irrelevant, as prices always risk and your buying in a low market.

Karcheer · 03/09/2019 21:30

If it’s been on for that long, then clearly developers don’t think there’s any value in it, so I’d offer what I said and see what they say. Do you know what offer they accepted before?

Kamma89 · 03/09/2019 23:18

360 max! It'll be more than 50k to make good & for the area once redone you'll not make profit & given sticky market may well be in neg equity quite soon. No problem if it's a long term home of course.

PurpleWithRed · 03/09/2019 23:28

Id offer 350 and expect to be negotiated up to 375. Doer uppers often sell for a premium round here, some people just love the opportunity.

I would say £50k for building work is very conservative if you’re basically taking it back to brick inside as well as all the structural stuff.

BubblesBuddy · 03/09/2019 23:29

There is no profit if a builder hasn’t bought it. Mortgage fell through could mean they wanted to borrow a lot more than the valuation. It could mean the place couldn’t get much of a mortgage at all!

Yes, I did see the one that had sold and it was bigger. So this one won’t get that money when done up. £50,000 looks tight and it does no harm to offer less - so try lower for starters. You never know, they might be desperate to sell by now!

Original poster

Alexalee · 04/09/2019 07:38

Bluntness 450 is the max it would be worth 50k is the minimum the work would cost.
The price it is on at is irrelevant... if it was on at 450k would you suggest offering 440k or 390k.
I think 350k is a fair offer... if a builder was buying it I wouldnt have thought they would offer much over 300k as they want to make a profit

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mathanxiety · 04/09/2019 08:16

Your builder is having a laugh if the damage is as extensive as you describe.

Jocasta2018 · 04/09/2019 08:48

Firstly, get the estate agent to give an up to date estimate on the house they sold 9mths again.
If the price of the all-bells-and-whistles house has gone down a certain percentage then that should be taken off the £400k straight away.
Also get an estimate of what the £400k house would be worth if it was move-inable straight away.
Get more than one builder's quote - get them to list fully what needs doing just to make the house safe & liveable. £50k might be enough -could be more.
I would then go to the estate agent, explain all of these things and offer £350k to start with. Your max depends on what the house in a decent condition would sell for.
If you give the vendor good reasons why you're offering what you are - that you're taking into account price fluctuations and the cost of work to be done - then they can't really complain.

We negotiated £50k off the price of a £350k house 16 years ago. It had been on the market for a very long time as was a complete shit hole. Wasn't pleasant for the first few months but the £50k went a long way to the costs of it all. We'd gone to the estate agent explaining our reasoning behind the offer and the vendor couldn't argue with it!

Bluntness100 · 04/09/2019 08:50

Op, all you can do is offer. What you think is a fair offer, or people on here, ultimately doesn't really matter. What matters is what rhe venders think is a fair offer,

The price it's on at isn't irrelevant. Because it gives you an indication of what they want. 50 k less is a big drop here.

Original poster

Alexalee · 04/09/2019 09:46

The builder did say no change out of 50k... so was assuming that was a minimum

He just emailed me a quick rough breakdown
RIP back to shell 2k
Scaffold 4k
Windows and doors 9k
Roof fascia soft gutters8k
Re render and wood clad front 1k
Rewire 5k
Replumb with new boiler 6k
Bathroom 5k
Kitchen 8k
Replaster 4k
Doors skirting architraves 4k
Flooring @50/m2 5k
Repaint 4k

Extras that we would want 2k for knocking kitchen wall into dining room and 5k to make a driveway out of the front garden

So that's 65k plus 7k for what I would call improvements

Do those prices seem reasonable to you?

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whatsthecomingoverthehill · 04/09/2019 14:49

The prices look a bit on the low side. e.g. 5k for a bathroom and 8k for a kitchen is just about doable, but it's not going to be the greatest spec. Plastering depends on whether it's just a skim or a complete hack off back to the wall job, in which case 4k would seem low.

The other house that went for £463.5k looked to be in good condition, and was 20% bigger. Purely going by the difference in living space, I wouldn't expect this property when done up to be worth more than £425k ish. Adding in a contingency for the work, plus also the faff factor of getting it done up, I personally wouldn't pay more than £350k. But that's because I also place a value on my time and the hassle involved in such a lot of work. The main benefit of a doer upper is that you can get things as you like them.

Original poster

Alexalee · 04/09/2019 15:47

So... those prices dont include vat so probably looking at 90k

The agent that sold the 463 property is confident they would get 440 for that now and this house when done up would sell for 420k
Like you whatsthat I value my time too and even if I didnt the numbers dont add up at all... I have no idea where the estate agent got 400k from to be honest, would have to get it for 330k just to break even
I'm not going to bother with an offer theres too big a gap between asking and what I would pay, seems a waste of my time

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whatsthecomingoverthehill · 04/09/2019 16:15

90k does seem more about right.

So yeh, it is wildly overpriced, and you do wonder who would offer anything like that. Maybe they priced it high assuming that people are going to knock money off for the condition, but that always seems odd to me - I would always price it taking into account the condition.

Shame as it could be a lovely house.

whatsthecomingoverthehill · 04/09/2019 16:16

Also, the agent saying 20k difference between the other property and this when that has a big extension doesn't seem right.

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