Selling a house that's in worse condition than when you bought it?

[cinnamonandnutmeg]

DH and I bought our first house in Jan 2020. The survey didn't pick up any issues, but what felt like a great deal started to crumble round our ears practically the second we moved in. We've had to do some major repairs and renovations and it feels like we're light years away from having a house that feels like a home. We hated the decor when we bought the place but we thought that would be an easy fix, not realising that we'd be spending ages on more urgent issues. I'm tired of feeling like I live in a building site. My commute to work sounded easy enough in theory, but it's eating up my energy in ways I didn't expect and I want to move closer to my job. DH works from home, but he'd also like to live somewhere a bit more central.

Recently I spotted a house that ticks all our boxes in terms of price, size, location, etc. Even the more superficial stuff looks perfect for us - the current owners have obviously got very similar tastes in decor. I wanted to get the estate agent on the phone immediately to arrange a viewing. DH refused even to consider it. He pointed out that we've got a tiny mortgage at the moment and taking out a bigger one in the current climate would be mad. I can see his point there. But he was also saying that he wants us to get this house into sellable condition first, because we'll lose money if we don't. I think we'll probably lose money anyway and we should just bite the bullet. I'm also worried that the sellable condition will never happen and we'll still be living in a building site at the end of a decade. DH and I have very different personalities in this way. I'm much too impulsive at times and as soon as I have an idea I want to act on it, but he can be overcautious and he sometimes spends so long thinking things over that he loses his opportunity. What would other people do in this situation? I don't want to railroad DH into moving because of a rash impulse, but I also don't want us to potentially lose out on our ideal house because of overthinking.

perhaps get the house valued and see if/how much money you're losing. Then do the maths and see if it's logical

As above. Do a quick declutter and get a valuation as it is.

Agreed

What are the repairs and renovations that are ongoing? I'd push to sell if it were me and I couldn't live with it anymore. My dh is similar to yours and would sit on his hands forever.

Will the cost of repairs etc be similar or more than what you'll lose on the value? You'll be saving the cost of repairs, as well as the time and stress of them.

I'd persevere with your current house. I know it's demoralising but moving isn't a quick fix; it's stressful, expensive, you stand to potentially lose money and a new house would cost you more in terms of mortgage etc.

What work needs doing for it to appear 'done'? If it's just that you haven't got round to the decor, I'd spend a few hundred pounds on wallpaper and chuck it up.

It'll sell the house much easier if it looks ready to move in to.

People don’t want ‘doer uppers’ because of the increased costs of doing it up nowadays.
Personally I’d get it valued. You’ve had over 3 years to do it up, unless you have a plan, timeline and resources it sounds doubtful you’ll be finishing it any time soon.

We were in a similar position 4 years ago. House wasn't quite ready to go on the market to sell, but had already found a house I loved and wanted to buy. The estate agent selling the house said they would sell our house too to make sure we got the other one, but there was already an offer on the table.

In the end, I felt like it was all going too fast and felt pressured. So didn't go along with it. We never did move house after all (despite ne always feeling like it was the house that got away). Plus now the same house is back on the market again for £200k more but the internal changes they have made have put me right off it!!!

In all, we are relieved wedding move as would be struggling to pay a higher mortgage. So it did work out for the best!

If you think you might regret missing out on the house, you should go for it.

Forget about this particular new house. It may be that, all things considered, it is better for you to move, but timescales are unlikely to work out around this house you've spotted, and it's all too fraught.

Calculate the cost of repairs on the old house. Do you have existing funds, or will you need to borrow?

Weigh up the cost of renovation and potential capital gain vs selling and taking out a larger mortgage. What do you want? What can you afford? What can you live with?

Once you and DH have seriously considered options and are on the same page, move forward.

If you're considering moving that will cost you, fees, stamp duty, surveys, removals. Of you can afford that why don't you throw some money at your current house and make it lovely.

What big issues does it still have?

I think it really depends on where you are and what the market is like- not just whether you’ll lose money but whether you’ll sell at all. You need to speak to a few estate agents. Around me only the excellent properties are selling and they are having to take offers- anything with even a slight “issue” sticks on the market. Places which aren’t finished put lots of people off as they assume they’ll have to re-do what has been done or there are bigger problems beneath the surface. And as others have said you’ll definitely lose money and it could be quite a bit.

In your position I’d try to finish it as quickly as possible even if that means you might not get all the money back- not big stuff like a new kitchen, but serviceable windows, working heating and bathrooms, and decorating finished, unless an estate agent is sure they can sell as is. If you only have a tiny mortgage can you get a few trades in to do the remaining big stuff and then both take a few days off and decorate?

Good point the selling buying costs cost us 15k seven years ago. We were downsizing no mortgage but it's still annoying

Have you viewed the other house? If not, I'd go and see it to see if you really do like it. There might be something that puts you off completely. Adverts can be very misleading!

The survey didn't pick up any issues, but what felt like a great deal started to crumble round our ears practically the second we moved in.

You've been burned once as the 'great deal' turned out nit to be such a great deal.

And yet..

Recently I spotted a house that ticks all our boxes in terms of price, size, location, etc. Even the more superficial stuff looks perfect for us - the current owners have obviously got very similar tastes in decor.

I think you are placing unreasonable expectations on this house too because it is a complete contrast to your current one. It may well have hidden issues, may not be quite so wonderful a location, etc., so I can understand your husband's reluctance as I can equally understand your wish to get out of the current house you are in.

As others have posted, get a valuation on your current property - a realistic one that would ensure a reasonably quick sale - then work out exactly how much you would have to find to purchase the next property and detail everything. Then work out how much you will benefit in the new property - no costs on renovation, cheaper quicker commute, etc. Then detail how much it will cost to stay where you are and do the work required to bring the property to your preferred standard, how long this will take, how much value long term it will add to the property, how it will increase the liveability factor for you. You will then have a detailed list of pros and cons which will be a starting point to discuss and will help you decide, you will have an objective view and whatever you choose to do you will be doing so with your eyes open to it.

I personally wouldn't bother trying to fix anything if you want to sell. Why would you put a ton of money into something with no guarantee that you'll make back.

If someone wants your house then they'll buy it and do it up themselves. Yes, there are people out there looking for a house that's just been done up and ready to move straight into, but there's also people who want to do their own thing, even moreso for buy to let buyers.
There are PLENTY of houses on the market in a disgusting state, full of mold, kitchen and bathrooms old and falling apart, broken floorboards, dirty carpets and walls etc and they still sell for more than you'd expect.

My parents bought a house like this - a 1970s property that needed a lot of work. The vendors had started the work (finished one room) then decided it was too much for them to do with a young family. My parents paid 9% more than it had previously sold for.

@cinnamonandnutmeg you really need a walk straight in house, neither of you possess the skills or the will for a do upper. I hired skips, kango hammers, wallpaper stripper's and cracked on knocking up concrete paths, decorating rooms one after another, OH was the muscle lifting floor boards, dragging out loos, sinks, baths. Doing the plumbing, we both assembled kitchen units, I tiled kitchens.

If you're not up for it buy it but you'll pay more

Very good point - it cost us north of £25k all in to move last year.

I sold my flat recently and it needed a lot of work doing to it. I priced it to sell. I could have gotten more if I did the work. Probably more than what it would have cost to do the work. But I decided my time was more precious and I lost the love for the house so sold it less. But the extra money I would have got would have gone on selling fees. So not really any better off.

It sold on first viewing and they are developers so happy to do the work. If no one wanted to buy it, I would have done the work. Glad I didn’t as house prices have gone down. It cost me £2.5k to sell. With estate agent fees and solicitors.

Around here small builders are buying run down bungalows retirees who die. They're gutting them, putting in spa baths, ultra modern kitchens, bi-folds to the garden, crittall windows, grey cladding, paved frontages for parking and flipping them for double the price. One builder friend his wife is talented at interior design, furnishings etc. People are also buying every stick of furniture too down to the towels.

i've always found that houses that need work on them sell for just as much as houses that don't. it's odd really.

In any case, a PP pointed out the best thing to do is get it valued - then you'll know what you're up against.

Thanks for all the helpful advice, and sorry not to respond sooner. I came down with Covid and I haven't been having a fun week. At least running a temperature of 39 took away my urge to repaint the entire house over the weekend and get it on the market by Tuesday. 🤒

DH is coming round to my way of thinking, mainly because our next door neighbours and their newborn have made him think that our house is too small for a baby. We'll get the place valued and ask the estate agent's advice on anything fairly simple and swift we can do to make it worth more. I'm not going to look at Rightmove until it actually makes sense to start looking, or else I'll just start falling in love with houses that will be gone before we're in any position to put offers in.

I'm in an identical situation. I spoke to an estate agent who said don't bother. He said I could pay for brand new flooring and the new owner could literally rip it up immediately cause they don't like it.
With my other half I got him on board by doing a v accurate worst case scenario spreadsheet and pros and cons list. Spreadsheets are his love language.
Hope it goes well whatever you choose to do.