How to decide what house is worth

[Ladyof]

I'm going to view a house this weekend where it looks like a lot of work is needed, it's on a busy B road but set back slightly. I feel it is overpriced for where it is and for how much work needs doing but it is just a self build so nothing whatsoever to compare prices against.

How would you work out what to offer? It doesn't help as estate agents seem to be overvalued everything at the moment to get the business!

It depends on a lot of factors but you have to decide whether you like it enough to buy it first

Well yo have to see it first. Work out how much you’d need to spend to bring it to where you want it, then deduct that from your total budget and make your offer.

If it’s below asking they will either decline or accept. No one can predict and of course someone else might offer more.

This is something I have never understood... A house is worth what someone is willing to pay for it. Only you can work out what you would pay for it given what you would need to spend on it too. I would be mindful of ceiling prices in that location.

I’d also be very mindful of how you’ve come to the conclusion it’s over valued, far too many people look at a propert outside their budget then declare “it’s over valued and wow, it should have been priced at exactly what I can afford”.

I’d also be hesitant to say it’s over valued to get the business, houses are flying at the moment, the market is hot, or it could be the owner won’t move for less than the asking price.

You make your offer based on what it’s worth to you and what you can afford. After that it’s up to the seller and anyone else offering.

Nope, prices are higher due to demand. My Pil were interested in bungalow, estate agent valued it, seller wanted a substantially higher value, estate agent reluctantly marketed it at that price. Pil bought it & it now looks a complete bargain as prices have shot up way past that point.

You work out what you want to pay, given your cash situation & mortgage valuation & ltv, cash needed for work, etc. If it goes for more, then that's what a willing buyer was prepared to pay.

Depends on your budget and the costs of the work involved. It's worth whatever someone is willing to pay for it.

I’d also be very mindful of how you’ve come to the conclusion it’s over valued, far too many people look at a propert outside their budget then declare “it’s over valued and wow, it should have been priced at exactly what I can afford”.
This!

Anything is only ever worth what someone will pay for it.

A good advice from one of my colleagues: Go on Rightmove or Zoopla, take the sold price of the properties recently sold nearby. Look at the floor plan (alternatively you can find them on EPC chart) to know the size of the property. Divide the price of the property by the size to get the average price per sqft /meters. The best comparables will be the houses that are similar to the property you are buying, and you can also make adjustments for things such as garden, stairs etc as you see fit.