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Original poster

Best and final dilemma

25 replies

shiveringwiggles · 19/07/2020 13:05

Ok. I need help.

Our dream house is accepting best and final offers on Monday. The house is on for offers over 199k and we have a total budget of 225k. For the area, 199 is insanely cheap- 300k is average with houses selling between 280k to 350k.

This particular house is in need of modernisation (new kitchen, bathroom, decoration, carpets, skirting) plus we noticed black mould around downstairs window and cracks in the bathroom ceiling which we're aware need investigating.

However, the location couldn't be more perfect for what we need and the barebones of the house is more than workable.

The EA claims there have been other offers but we don't believe her. (She claimed there had been 8 offers while an EA at the same company told us there had been 2). However, there will definitely be a couple of other offers on the table.

The likelihood of another coming on in this area which we can afford is slim. I'm see-sawing between offering 205 (rational me) and 225 (emotional me).

What do we offer?

OP posts:
TeetotalKoala · 19/07/2020 13:09
  1. Listen to your rational side. Everything you've mentioned costs money! If you offer your top, can you afford to do the work?
NellieandRufus · 19/07/2020 13:13

How long do you see yourselves living there for?

NellieandRufus · 19/07/2020 13:15

Does your budget of 225 include money for the work that needs doing?

ChateauMargaux · 19/07/2020 13:15

Can you afford to do the work required?

If so will it be worth 280k?

Do you have a rough estimate of what the renovation costs would be?

If you love it.. I would go to your budget of 225k

Climbingallthetrees · 19/07/2020 13:17

You can’t bid £225 if that’s your total budget including renovation costs. It doesn’t sound like the house is liveable without at least some work. So put the whole idea of £225 out of your head.

Is this house like the others which sell for £300k? Because if so it is either going to go for significantly over the asking price or it needs structural work. Houses in need of decorative modernisation do not sell for £100k below their done up asking price.

Mmmmycorona · 19/07/2020 13:17

Can’t you go somewhere in the middle? £212k /£215k?

Didicat · 19/07/2020 13:38

What is your ltv? Budget is only good if your have cash to use to renovate.....

Original poster
shiveringwiggles · 19/07/2020 14:02

So to answer a couple of questions:

  • we have LTV of 90% (not ideal, I know)
  • when done up, it'll be worth around 275/280k
  • we have some cash but not enough for everything which needs to be done. However, we could afford to continue renting whilst we do it up, bit by bit.
OP posts:
totallyyesno · 19/07/2020 14:05

I don't know if this is rational or not but I wouldn't bid a round figure anyway - so 207,438 rather than 205k!

FlamedToACrisp · 19/07/2020 14:24

I'd offer 220K, wipe over the mould with a bit of bleach and start saving up for the ceiling.

How gutted would you be if you don't get this house?

Cheetahfajita · 19/07/2020 14:27

£217500 full and final.

Good luck

IndecentFeminist · 19/07/2020 14:29

I'd go more rather than less

ThroughThickAndThin01 · 19/07/2020 14:30

If 199 is insanely cheap I’d go much higher than 205.

Beetlewing · 19/07/2020 14:33

If you really want it you offer the most you can afford. Then if you don't get it, you won't feel so bad because you haven't missed out.

Onemorerep · 19/07/2020 14:42

How gutted would you be to offer £205k and lose out knowing you could have gone higher? I would offer as much as possible up to an amount I could live with if I lost out so either an amount where I'm comfortable it definitely isn't worth more or an amount I couldn't have gone above even if I wanted. That way, if I lost out I'd know I couldn't have done any more. Best of luck OP. Just gone through this and it's very stressful - I was talking myself up to emptying my bank account and completely ignoring sensible me.

Original poster
shiveringwiggles · 19/07/2020 14:50

It's interesting that the consensus seems to be to offer high- you surprise me Mumsnet! :-)

OP posts:
ChateauMargaux · 19/07/2020 15:04

Of you can afford to carry on paying rent, pay the mortgage and do the refurb bit by bit, something is wrong with the way you are looking at your numbers... you might be able to get a renovation loan. Is any of the house habitable.

patientlywaitin · 19/07/2020 15:07

I'v done this before op, if £199k is dirt cheap it'll end up much higher. How bad is the kitchen and bathroom? Do you know people who can help with works?
Redecoration and carpets can be done dirt cheap.

Newdad19 · 19/07/2020 15:07

How will you feel if you miss out on it? Will you wish you had just offered the extra money or will you be happy to walk away?

If the first then offer 225.

Also if its a forever home then the extra cash is worth securing it imo

Didiusfalco · 19/07/2020 15:15

If it’s insanely cheap then all the mould and need for refurbishment is very much priced in. Could you do £225,250? You sound really keen and you’re going to kick yourself if you cheap out.

ChocoTrio · 19/07/2020 15:17

@totallyyesno "I don't know if this is rational or not but I wouldn't bid a round figure anyway - so 207,438 rather than 205k!"

Just curious - why do you not bid a round figure anyway? Is this a trick I'm missing?!

Ariela · 19/07/2020 15:45

Most people will bid a round figure. You need to bid £206,50 not 205. Or 213. Just to be above the 205 or 210 people.

yesterdaystotalsteps123 · 19/07/2020 20:44

Is it a deceased estate? In my recent experience they prefer cash buyers because they're worried about surveys and valuations, I'm sorry I'm not trying to rain on your parade, but put your best offer in and still consider you might not get it due to circumstances beyond your control really

NegativeNelly · 19/07/2020 20:59

Take it from me offer £5k more asking price, don't go all in straight away! EA lie so much! When we got our now home , they told us that they sold the same layout property of ours round the corner for £235k which was true. But this house was on sale for offers over £200k. Like yeah right I'm going to go up to that much. The house was similar state to yours but had just floorboards with holes throughout the whole house with empty space below so heating rubbish. The EA said there were several people interested in it and were putting offers in. tbf we got scared off and left it a week and noticed it was still on market. We called round when the occupants were in and chatted to them. They hadn't had interest! So we made an offer there and then. We noticed they redid the roof so we put an offer of £205k and they accepted!
Don't go all in , you'll regret it and you'll want to use that money to put your own stamp on it. And even if they decline, try a few grand more if still no walk away. Don't stretch yourself it's not worth the strain on your relationship and finances and health. There will be others I promise! Good luck

CuppaZa · 19/07/2020 21:02

I’d offer 215k, if accepted use the rest to do work as and when you can. If it’s the perfect area and they don’t come up often I wouldn’t want to miss out

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