How much to offer on rundown house

[curiousquestion2]

Could do with your advice on what to offer as we're not cheeky people, but as always, money is tight!

We saw a house today that is on for £725k but needs a lot of work doing in it. It's 4 bedrooms and is on for the same price as other 4 bedrooms are on for in a better area (I'm comparing to 1.5 miles down the road, where offers are made the day after they come into market). The houses for sale in the better area tend to be in good nick - usually decorated to a high standard. And they have a little bit of room for improvement, like loft conversations.

The house we saw today is a proper granny house - no work's been done for at least 30 years. You'd need to knock through walls, replace doors, do the bathrooms and kitchen, even replace ceilings. Avocado bath and all. But we think it has more potential for the kids - bigger garden etc. And it's difficult to renovate in that area because there are a load of massive houses with better jobs and of course Brexit etc. So, unusually, it's been on for 4 months and no offers. No one is willing to take on the work.

We are seriously thinking of offering, but have no idea what's fair. I know we need to price in work etc and do the calculation. My question is at what price would they be likely to tell us to piss off?

We also found out that the costs of moving there (childcare particularly) is going to be a lot more than we'd initially budgeted for, so if we can get this place on the cheap, the plan will be to sit tight for a few years after doing a basic job and then start the renovations properly when our costs are lower and our wages are higher (as is the plan).

Any advice would be appreciated!

The issue with making a low offer based on the house needing work is that I can pretty much guarantee the EA will come back and say it's already been priced with the work needed in mind. Is the plot big enough to build another house on, or even demolish the existing house and build several new houses on?

We saw a house today that is on for £725k but needs a lot of work doing in it. It's 4 bedrooms and is on for the same price as other 4 bedrooms are on for in a better area (I'm comparing to 1.5 miles down the road, where offers are made the day after they come into market). The houses for sale in the better area tend to be in good nick - usually decorated to a high standard. And they have a little bit of room for improvement, like loft conversations.

Unless they reduce it significantly you will surely end up spending close to 725K anyway if you factor in the cost of renovation?

I guess the reason it’s not sold is that people have worked out renovation costs and are buying the already renovated houses in the better area instead.

Is the plot big enough to build another house on, or even demolish the existing house and build several new houses on?

That’s a good point.

There's a severe lack of building materials still so make sure you'll be able to source what you need if you buy it.

A friend can't find the things they need to finish hers and she's stressed to the max.

@NinaDefoe

Is the plot big enough to build another house on, or even demolish the existing house and build several new houses on?

That’s a good point.

Yeah. There’s a rubbish tiny bungalow down the road from us on at double what you’d get a nice 3 bed house for - it’s because the plot is massive. They’re not selling the house they’re selling the land.

@sst1234 I don't see the point of your post. 🙄

Thank you everyone! A lot to take in. We had a really busy weekend of weddings, but we sat down and looked through the replies last night. You've given us a lot to think about.

We'll be looking again at your suggestions as we try to cost the work x

@Monty27

If superior properties are selling for the same down the road why don't you buy one of there?

That’s what I was thinking.

According to the info the OP has provided, for the same money she could get a similar sized house, in better condition, in a better area, still with scope for improvement.

@DenholmElliot

If it's been on the market for 4 months it sounds as though they are holding out for £725k. I'm guessing they're not bothered about a quick sale and the all already have their own homes.

I'd offer 20% less which they will refuse, and then move on to look at other houses. I'd then come back 3 months later and up my offer to 15% less - if they want to sell they'll use that as a negotiation point.

This. Wreck of a house, probate, one side of me, went up for sale 6 months ago for a ridiculous price for the condition and, despite reductions, is still for sale.

House the other side, in nice but not swanky condition went up a few weeks ago and got almost immediate asking price offer.

@Seeingadistance indeed.
I don't get your thinking OP.
Rather than buying an uncomfortable wreck why won't you buy liveable condition at the same asking price down the street or are you waiting for the price to drop?
It probably won't after the rest have been sold. It could even get higher.

I wouldn't touch it with a barge pole. Everything will cost more than you've budgeted for and if you say the area is more expensive than you thought then it sounds like a great way to drain all your finances and ruin your quality of life - and for what? A bigger house and garden? Life's too short.

I also don’t understand if better houses are on for the same why you don’t buy one of them?

I assumed they couldn't afford the done up houses, hence they are hoping to get this one cheap and do the major work when they have more spare money.

With renovation costs through the roof though I can't see this working. Long gone are those days, sadly.

@CellophaneFlower

I assumed they couldn't afford the done up houses, hence they are hoping to get this one cheap and do the major work when they have more spare money.

With renovation costs through the roof though I can't see this working. Long gone are those days, sadly.

I had the impression same price

Yes she said same price, so if she can afford the run down one she can afford rhe better ones. It makes no sense.

@Chestofdraws

I also don’t understand if better houses are on for the same why you don’t buy one of them?

Our finances are a bit complicated at the moment, but we I'll try to explain (with a thank you for coming this far).

Our house has sold for 725k, so we can move at that same price, but it would wipe out our savings to move and the cost of living is higher in the new area. We could manage it, but it would be tight. However, we've both taken different jobs while the kids are small, but both of us are being asked to take more responsibilities again (i.e. our incomes should go up again, but obviously it's a risk to bank on that).

So part of our thinking has been if we could get a do upper at less cost, then do it up bit by bit over a few years, then we'd have a slightly bigger house in the end and we don't have to move again. I really never want to move again - we want to be here for 20-30 years at least.

But of course you've got the quality of life question!

If you can make it work for you, that's great. But you need to take into consideration that a doer upper is almost always going to end up costing more than a 'done' house when work is completed. The extra cost is worth it to some, as they can finish it to their taste etc. However, if the reasoning is to get a bigger house in a better area by purchasing a reno job cheaper, this probably isn't wise, as it will more often than not end up more costly eventually and obviously you have the stress of the work and living in a project in the meantime. If you can get realistic quotes though, it's of course worth making an offer if you think it's feasible