Offer on 400k house

[BigBabySmallMum]

I want to put an offer in on a house
It was up for 425k but was lowered to 400k recently
how much do I offer?

its the right size for us but needs gutting completely so it’s a lot of work, I don’t mind doing it but don’t want to pay more than I need to as need to keep money back for doing it up..
all thoughts and advice welcome, I don’t know what to do!

thanks 😊

I’ve been observing a house on for 625, all summer. It has an 80’s kitchen, green bathroom, inadequate electrics, is opposite a hotel and a car park, but near the beach.
They just reduced it to 620.

Are you the op?

"I have lost houses I loved by trying too hard to strike a deal and losing out to other buyers."

That is less of a risk now as there are a lot less buyers.

No I was answering part of the op that I replied to earlier, it was supposed to be in bold the quote from the op but failed. Sorry for causing confusion

There’s not many around similar but one sold last year which is as close as I can find for 400, but that is all done up inside, straight move in, maybe paint a wall if you want a different colour etc. it’s also extended to increase kitchen diner so lounge is bigger as no table and chairs in there now.
I know house prices have gone up in the last year but I was trying to factor that in alongside the poor condition

I’m in a good position- no chain, good deposit
I need to hold some money back for doing it up though

If you really want it.

Dont bluff.go with what you are genuinely prepared and comfortable to pay as a maximum, factoring in a realistic budget for what you plan to do to the property.

If accepted - great.
If not - you know it’s not the one for you and you start looking elsewhere

I think they’re selling the house in line with the other houses that I’ve seen round the area that have sold- but those houses are done up and have ground floor kitchen extension, but this one isn’t..
I need to work out how much it will take to do up, I just guessed 50k but I really need to guesstimate better
all the products are cheap in their house- tiles, bathroom toilet shower sink are low end, kitchen cabinets all mdf so chipped etc probably why they’re all damaged or past it..
so I know I’ll want to put in higher mid range fittings and make the house nice and modern but cozy like my house is now.

I don’t know if the estate agents have hyped them up by getting them to put it up for higher to begin with so maybe they think is worth more- but I reckon that was a cheeky chance putting it up for more just to see if there were any takers !
how do I show them their house is run down and needs doing up - it really does, I’m not exaggerating, it really wasn’t taken care of..
does the estate agent have to tell them everything I say when I’m putting in an offer? as in make it clear it needs ripping out?
Thanks so much

It sounds like it's at least £50k overpriced if they're trying to sell for the same as last year, which was a real peak.

Before I completed on my current house, I saw a property that was £100k overpriced. Vendors were trying to catch on to the tail end of spike last yea/early this year. I offered £100k less than it was on for, they immediately refused, I lifted offer by £25k, again they refused. 2 weeks after this, they reduced their price by £50, so there was only £25k difference between what I could pay, and what they wanted to receive.

4 weeks later, I finally completed on my current house. 2 weeks after that, EA came back to me sheepishly asking if I was still interested in buying the overpriced property

If you're sure it's overpriced, I'd hold your nerve, and keep looking at other houses. They will come back with a counter-offer once they accept they are being unrealistic.

thanks so much for your example, no one seems to want to talk about their house negotiations so I have no real examples to go by so this is really helpful.

am I right in thinking that the market is dipping down now and there is not so many buyers due to uncertainty with inflation and talk of recession ? So that makes me in a good position along with having no chain and good deposit

hopefully they don’t get any more offers and they come down to my offer 🤞🤞🤞🤞 I don’t know if I can go much more..

So if they find issues on the survey I can renegotiate?
thank you! I didn’t realise i can do this!

Thanks so much! This gives me some hope- how did you negotiate? How far under did you go on each offer?

It’s 2000 so 22 years old, so I’m assuming wiring and pipes should still be fine?
how often does a roof need replacing !
I’m a tad clueless
i might get my friend who’s a builder to come have a look next week and see what he thinks
but I’ve arranged another viewing to see where power points and little things like that are - based off some good food for thought from you all

Honestly if it's only 20 years old it doesn't need "gutting" it just needs redecorating and, from what you say, new kitchen & bathrooms.

I was imagining a period property that needed replastering, rewiring etc.

I wouldn't describe the market as dipping now, more stagnating at the moment, and expected to reduce slightly. Vendors are certainly not getting 10 bids over asking now like they were this time last year.

In my area of West London suburbs, only realistically priced property is shifting now. Vendors with the heads in the clouds don't see any movement.

The vendor of the £100k overpriced house I mentioned earlier have now taken it off the market. I'm pretty sure they're wishing they had accepted my offer, as they live overseas, so the house is costing them in real terms to maintain. My guess is that they're getting ready to list with another agent, but if they put it on at the price they took it off at, they'll face the same issue again.

I would put the house you are set on out of your kind for the moment, and focus on looking at other houses. Having no chain and a decent deposit, you are in a very strong position to negotiate with parties who are open to it.

It helps to know the history of pricing in the area - there are websites you can track it on. House had been on market for 18 months (it was last recession) and had changed agent once. Clearly little interest. It emerged at some point it had been valued for probate a couple of years earlier at the then peak of the market and the elderly widower now selling couldn't get his head round it being worth less than it had been valued at then (I think it was on at about £75k below that peak price).
We offered 10% below the price it was on at. Offer would have been 18% below the 'peak' price. That offer was rejected, so we increased it by £10k. Also rejected. The EA have us some strong hints what sort of range an offer would be considered in. Increased by about another £10k, which took us to 5% below asking price, which was accepted.

House was in a state, a definite doer upper. We got £1600 off when the survey revealed a problem with the flat roof but otherwise the survey simply showed what we suspected, that it would need rewiring, new plumbing and boiler, new bathroom etc.

A 20-odd yr old house is not a doer-upper unless it's been a squat. It's barely old enough for 'tired decor' territory.
A decent roof should do 50 years at least before reslating/retiling. Ours had done 100 years before we reslated, we could have got away with leaving it longer, and we reused most of the slates, but slates last a lot longer than tiles- at least, good slates do. A simple reslate/retile isn't all that costly anyway.

Good idea to get a builder friend to look it over. I'd still get a survey, though. You don't need the very most expensive 'full structural' type unless the house is a non-standard build or there is something your builder mate is worried about. But I'd have nmore than the basic 'drive past' lender's valuation survey. A survey gives you things to negotiate with, and should be able to reassure you about a good many things.

LOL, in this climate that is like giving away a free box of chocolates to anyone who offers on it, they need to do proper drops, 25k or 50k at a time to get interest, you could see people doing that on PropertyLog even before rates went up.

I need to work out how much it will take to do up, I just guessed 50k but I really need to guesstimate better

op - rather than ask anonymous posters, actually do research specific to your property! If what you offer is dependent on the cost to renovate to your standard - then you can’t guesstimate with absolutely no idea! Get quotes, yes draw on your friend who is a builder!

but I’ve arranged another viewing to see where power points and little things like that are - based off some good food for thought from you all

why on earth have you done that! That is something you do when you have at least the vague idea of whether it’s feasible to buy!

Get a builder (s) around to quote

and if you want to look at bloomin electricity points at the same time - then do it then! 😂

Surely there are bigger fish to fry and you’ll piss off the agent if you are asking for multiple visits

So if they find issues on the survey I can renegotiate?

thank you! I didn’t realise i can do this!

what? You honestly didn’t know you could re negotiate after a survey?

if this is indeed the case, you really should involve a family member or friend who has at least bought one property before!

Is this as a result of an inheritance?