Help! Can't choose between 2 similar houses

[josiu]

Hello I need help choosing between 2 very similar cottages on the same road! I've been stuck unable to make a decision for the last couple of weeks and don't know what to do anymore. Both houses are on the same road, only a few houses in between them. I'd already started the purchase of cottage 1 when cottage 2 came on the market at the same price.

Cottage 1
Additional parking land opposite the house (co-owned with another person) but no driveway
Pristine finish ready to move in
Bathroom downstairs at the back of the house
No dining room- just living room and a small kitchen downstairs
Long but narrow garden with tall fences

Cottage 2
Driveway for 1 car but no additional parking
Needs additional work, including potentially replacing the roof and heating system which is expensive
Bathroom is upstairs as there is a larger extension in place
Means the downstairs kitchen is bigger and there's an additional dining room
A beautiful garden with a lovely view as the house is higher up on a hill, all you can see is the surrounding forest.

I tried making an offer on the 2nd house but it was rejected. The estate agent said the vendor will only accept asking price and if they don't achieve it they will take it off the market for a few years to rent out instead.

My heart says cottage 2 but brain says cottage 1 as it won't need any additional money invested into it. I am worried about overpaying for house 2 in the long term as the housing market and prices are likely to stall or go down in the next few years. I need to make a final decision as i need to decide whether to proceed with the current transaction for house 1 or drop it. Any advice?

I’d stick with cottage one.

A vendor who wants asking price only on a house that potentially has roofing issues and a new heating system sounds unrealistic and difficult.

Would you have funds/appetite to do an extension to sort the layout of house 1? That would be the wisest investment if you wanted to do the work.

Exactly this ⬆️

Plus - in this economic climate I suspect there won’t be many buyers willing to risk purchase and then spending more on roof/ heating so you may get the chance to buy no. 2 again in a few years after it’s been rented out (and seller could be more realistic) - although it doesn’t sound like your ‘dream house’ and by then you may want something different?

Can you afford to replace a roof if you buy the cottage at asking price? Will the work required mean you're paying way over the odds? How many cars do you have and are you likely to have visitors?

Cottage 2 100%
new roof and heating system doesn’t mean they can’t want the asking price- if it’s the same price as cottage 1 which is smaller with no drive and a crap garden, then it sounds like it’s priced to allow for the work that needs doing

You haven't given us sufficient information.
What's the difference in price? Do they have a different number of bedrooms due to the extension? How many bedrooms do you need?

Does No2 really need the roof replacing - you said "potentially". Isn't No1 a "potential", too? Isn't it something that all surveyors say on older properties.

How much is new heating system? Again, is it a "potential" and not an immediate necessity. What is the insulation situation on both properties.

Are you purchasing alone?
FTB?
children to consider?

How far along are you with cottage 1?

If without a survey you identify new room needed and new heating system - this will be the tip of the iceberg re what a survey uncovers

Hi all, thanks for all your comments, all super helpful. Here's some additional information that you all asked for:

There is no price difference between the 2 houses
I am a FTB buying on my own with no kids and unlikely to have any at all in the future
Both are 2 bedroom houses
I can afford both a new roof and a new heating system - I am more concerned about pumping the additional money into a house that won't hugely increase in value in the next few years and I am not 100% sure if this would be a 'forever' home
I said 'potentially' as I could see the roof tiles were wonky and there was a bit of a musty smell in one of the upstairs bedrooms even though there were no marks or mould visible. The heating system is old but functional so this wouldn't necessarily be work that needs doing immediately
I was about to start searches on house 1 when the 2nd one appeared. I have paused the transaction for a few days but haven't withdrawn

Also, house 1 had the roof replaced 9 years ago so this won't be an issue there

If you pull out of house 1 to buy house 2, you might also consider what your new neighbours will think! A small thing maybe but still…

Basically, what it boils down to seems to be is the lovely garden, bigger space and upstairs bathroom worth a new roof & heating system to you?

Are you looking at the purchase as a home or an investment opportunity?
if the former - go with the one you love more and will work for you best. if in a fundamentally good location, then improving the property will reap dividends.

if the latter, doesn’t sound like either ticks the box

House 2 but be prepared to stay longer than you first envisaged due to the downturn in the economy. It sounds a better bet as you say you can afford the roof repairs and updating the heating.

I'd go for house 2 if you can go without the additional parking

Don't buy cottage 2 wihtout a survey.
If you get a full survey done and they flag up probs then you can negotiate a lower price. A musty smell - ?damp.
But in the long run the house will the nice view will always sell easier in the future (assuming you have the problems fixed)

My only worry would be is if a survey throws up loads of problems and you've lost out in house 1. Is it worth the risk of losing both?

If I was the owner of cottage 1 and the person who had made an offer asked to “pause” the process, I would get my cottage straight back on the market and decline proceeding with the aforementioned

I tried making an offer on the 2nd house but it was rejected. The estate agent said the vendor will only accept asking price and if they don't achieve it they will take it off the market for a few years to rent out instead ... My heart says cottage 2 but brain says cottage 1 ... I am worried about overpaying for house 2 in the long term as the housing market and prices are likely to stall or go down in the next few years.
Make an offer on House 2. To rent, not buy.

I would go with one and spend your extra money on getting a landscape gardener to plan a nice garden and do some interior work to make it look really nice. Getting a new roof on would be a huge interruption and l couldn't bear the builders being around or letting you down. Same with new heating system. I am all for the easy option.

Cottage 1. The vendor of Cottage 2 has high and possibly unrealistic expectations, asking price or nothing would put me off, and I dont fancy your chances with negotiating post survey. Also as pointed out, Cottage 1 could be your neighbours, awkward. With the utter nightmare of getting hold of trades, plus inflated costs, and don't underestimate the disruption, I wouldn't want to take on works right now if I had the choice.

Parking is really important but you potentially have more with Cottage 1 (I assume that is all amicable with other land owner). With your lifestyle, Cottage 1 sound absolutely adequate.

What is the onward chain situation with each?

Which one do you prefer in your heart rather than practically?

Cottage 2 , because of the upstairs bathroom and the view.

Definitely 2. I hate downstairs bathrooms, and having to park across the road will quickly get old especially in rainy weather and when you've got loads of shopping etc.

It sounds like 2 is priced to include the work needed.

Generally I always tend to prefer properties that I can put my own stamp on, as long as this means not paying the additional money for a done up property.

Cottage 2 sounds like the better property based on the layout, the garden and the view. It sounds like it is bigger, so maybe not actually over priced if it is the same asking price as cottage 1. Why do you need the additional parking?

Updating the heating isn't smthg you would need to do immediately, but would improve the EPC rating and should therefore add value.

The damp however could be a huge problem and really ruin your enjoyment of the house. That is if there is actual damp. Lots if reasons for a musty smell. You would need to get a survey first to know more.

I think the point others have made of the awkwardness of potentially having the owners of cottage 1 is smthg to consider. Although likelihood is they would still want to sell their house.

What is your heart telling you? Do you love cottage 2 or is it a matter of FOMO and the grass is greener? Because there will always be new properties that come on to the market that might appear to be better than the one you have chosen.