Tips for viewing houses? And what does OIEO really mean?

[mediumhousecat]

Viewing a house for the first time tomorrow (used to own a flat). It's a Victorian terrace, 3 beds (one double, two singles) with long narrow garden. No loft conversion, very few period features. Kitchen is dated and falling apart in places.

What should I be looking for in terms of getting a sense of if it's structurally ok/taken care of/pitfalls?

It's also on for OIEO. Does that mean the sellers will refuse any offers under? Because even from the photos and video tour I wouldn't consider offering the asking price. Maybe 3-5% under.

Where are you looking? I guess London is a market on its own. A place needs work would I offer below asking price rather than in excess? Yes, why not.
As for what might be wrong with it, look and see. But on the whole anything really iffy is normally declared as it would only come up in a survey. Well that's my opinion, others may well disagree. :D

Damp is the main thing I would be looking out for, especially in any bay windows, be mindful of any “spongey” feeling floor, patches on chimney breasts etc

Woodworm
Damp
Subsidence - if there is any of this then run a mile
Cracks in the walls, diagonal ones that run from windows are bad
Roof- expensive to replace
Windows- same and if it’s listed in anyway you’ll have to replace like for like

Basically if it’s structural stuff it’s EXPENSIVE.

www.mumsnet.com/Talk/property/3917024-Offering-lower-on-an-OIEO-listing

Conclusion is - ignore OIEO!

Look for cracks in the walls, around windows and doors. Look for bowing/bouncy floors. Look for signs of damp and if possible the source - if its localised due to a dodgy gutter, that's different to damp walls that need lots of work. Think about the work you would have to do to make it what you want, and how that relates to where the plumbing is. Look at the neighbouring few houses - any loft conversions? If so more likely you'll be able to do yours eventually. Look at the windows and roof - expensive things to replace if they look old and crap.

It's often used by estate agents where the seller has unrealistic expectations imo.

All the OIEO, Offers Over, Set Price stuff is marketing nonsense.

Try and view without the owners being there. Ask the estate agent to take you round - you see more.

OIEO. They add it to try and give the impression it's worth more and you're getting a good deal. It is total BS and should be ignored whatever the EA says. Just put your offer forward in normal way and it will be considered by vendor in normal way.

If the house hasn't had cosmetic updating for a while, ask yourself why they haven't done it. In our case it was because big stuff needed doing underneath. For example, there was a very old kitchen with no 30amp cooker point, which meant we needed an electrician to run a cable, but he couldn't do that to the previous fuse box so we had to have a new consumer unit, which highlighted that the house is wired quite strangely and really needs redoing. Every room has needed more work than we were expecting.

Thank you for all your advice. I did the viewing this afternoon and it was a mixed bag - rooms are all bigger in person than they appear in pictures, as is the garden, which is sunny and warm despite the NW aspect. However there were a lot of hairline cracks in the walls and the coving in the living room, a large leak stain and sagging in the kitchen ceiling and the fascias and exterior of window frames would need some attention - not sure if that's cosmetic or more. In places it looks well cared for but others (kitchen) are a total dump. Bathroom is tiny and poorly ventilated, think condensation would be a big problem.

I also didn't realise before viewing but there is a poorly maintained flat above the adjacent commercial property (a very small niche clothing shop) - sheets as curtains, crumbling window frames and blown double glazing. The commercial property doesn't bother us but the flat condition does. Plus I haven't had good experiences with neighbours with sheets for curtains.

It has such a nice footprint. And potential for extending out or up. Great location. Just fear what the survey would show up, and potential issues with the party wall - and the neighbours.

Husband thinks if we could get it for 10% under asking we'd have a bargain 🤔

OIEO in my experience means the vendors NEED to reach that threshold to fund their onward purchase.

No onward purchase in this case, the owners are getting a divorce and moving into rentals. Which might also mean they want the max return possible, but they have had one sale fall through shortly before exchange.

Ignore OIEO. Unless really hot market.
If your pix are showing cracks I can't see them. Hairline I would not give a second thought to. And as long as the leak has been fix that stain wouldn't bother me either. Windows can be pricey to replace. Definitely get a homebuyers survey done which should give you a more professional idea and also can act as a bargaining chip.
The condition of the neighbourhood is important though. Can you ask the owners of the shop (if ours open) what their experience has been with them?

@mediumhousecat can't see much in the pics bar the water stain. I imagine there's a bathroom above and there's been a leak? Don't think you've said much of worry bar perhaps for you the flat. Although I'd not be keen on a commercial property nearby.
I don't know where it is, or the prices around the area, but I think your husband is probably correct (currently).

Why did the sale fall through, ask the agent?

Sale fell through as buyer was an investor and their mortgage affordability changed, apparently.

I sold my last house with an OIEO price.
I didn’t know this was a no no according to MN.
To me it makes much more sense than dancing about guessing an amount.
The minimum I was willing to accept was £100k so I listed at OIEO £100k and sold it for £100k.
With the previous agent they had suggested putting it on at £110 and accepting £100. That just doesn’t make sense to me. You don’t do that with anything else you are selling.

Thanks @Pipandmum and @sbplanet that's really helpful.

Any thoughts on the presence of the flat? In a way because it's not a matching terrace you have a lot less noise exposure - the flat only adjoins the master bedroom and the wall on the staircase side. Although would the upstairs if the flat potentially impact on a loft conversion? Wish I knew a builder to take round!

I sold my house recently. The EA valuations came in with a variation of about 30k and we went with the lower one. Sale fell through twice, both vendor issues of different kinds.

The EA then said to put it on for offers between the lowest and 20k lower still. I told them I couldn't go for 20k below the lower value, the max I could go to was 10k below the low one (had had a house built and needed to pay the loan back and finish the house). Predictably I got an offer right at the bottom. Luckily they really really loved it and were downsizing to the tune of well over 100k so were happy to up it to my minimum.

EA are a law unto themselves