Looking for opinions etc from those more experienced than me

[MissMarplesNiece]

I am trying to arrange the sale of my DM's bungalow. Typical old people's home, needs new kitchen & bathroom, very old fashioned decoration. EA suggested asking price of £135,000. First viewing is by 2 builders. Since I was last there, beginning of September, the bedroom ceiling is leaking (problem with valley of roof that was repaired 2 years ago), they spotted something that might be subsidence, and a "bowed" lintel over the sitting room window.

They offered £105,000. I counter offered £120,000 - kind of expecting them to up their offer a bit, but they have said no, while leaving their offer on the table.

I'm at a loss what to do - the roof is being repaired (again) sometime next week; I've just paid £800 water rates and a £1000 Council Tax payment. It is affecting my mental health I just see no end to it. I want rid.

Builders and developers always do this, but if it's making you ill and you have no outstanding debt attached to the property, I would just let it go. It's a buyer's market at the moment. Good luck.

has it been sitting on market for 6 weeks already?
What if you counter to say £110k to the builders, because sounds like you would accept that now.

It sounds like you are almost asking permission to accept their offer? You don’t need anyone’s permission, it is up to you. Your mental health is very important so if you can afford to accept the offer and it will give you peace of mind to sell quickly but possibly not get the best price, that’s worth a lot.

This is the first week that it's been up for sale.

I did think about going back asking if they'd accept £110,000. I feel responsible because its my DM's property and and I have 2 siblings, so it's not just my decision. It just seems such a huge drop from £135,000 to £110,000.

Do buyers usually come back with a counter offer or would they normally be expecting me to go back with an amended offer?

My DH thinks get rid ASAP, he sees how it affects me mentally (there are other DM issues that I battle with and the property is a 4 hour drive away) - his tacit way of saying accept £105,000, I think.

I just don't like the thought we're being taken advantage of.

What do your siblings say about it?
You did the right thing in going down to 120k.
I would have expected them to have increased the 105 somewhat even if just to 110k.
You could try saying via the EA that your bottom line is 110k and leave that offer on the table like they did with theirs.
Get a few more viewings and if no better offers in the next fortnight, then go back & accept the 105k?

Sometimes buyers come back with a counter offer sometimes they don't.

I'm renovating a property at the moment and new kitchens and bathrooms are expensive. Fixing a roof is also expensive.

If they are builders they probably have a very good idea of how much it will cost to fix for them to make a profit/put it in condition to be rented out and they are very unlikely to go above that.

The sort of people who make increasing bids are the ones that go in with a "cheeky" bid to see if they can get it cheaper and then will up if necessary. If the builders haven't done that then they think their bid is realistic.

It's up to you whether to hold on in hope of a better offer or not.

It just seems such a huge drop from £135,000 to £110,000.

That valuation was based on the roof not leaking, the lintel not needing replacing and, presumably, no issues such as subsidence. If you do get more viewings and an offer of 120k, what’s to say they won’t walk away or offer less if a survey throws an additional issue up?

I’d take the money and breathe a sigh of relief that it was no longer keeping me awake at night.

My brother agreed with me about going down to £120,000 but said £105,000 was too low. Like me he thought they'd come back with an offer of £112, 000 or so, which we'd have taken. I think he may be ok with £110000.

Are you sure they just arent trying it on with the lintel and subsistence claim? Do you know anyone in the area that could take a look at that for you? May be a way for them to cheekily get you to lower the offer. May be worth finding a local surveyor to check it out? would be worth the £500 it may cost to save you 'losing' a few thousand?

I would talk to him about it again. Explain the toll it is taking on your mental health and say you would like to propose 110k and leave that proposal on the table if it isn’t accepted by the builders immediately.

Turn the offer tactics around - thank them for their offer on the table, make it clear it is not acceptable, place the amount you are prepared to accept on the table (115k or 120k) and then do not enter into any further communication for a short while. If 2 builders viewed within the first week I would expect other builders will do the same.

Unless you really want it sold at a low price striaght away - a week is not long enough to make any rash decisions.

Is this a probate sale, or is your DM selling to pay care home fees?

Just thinking if it's probate, the difference between 105k and 110k, split between the three siblings is fairly negligible and not worth the additional stress for less than £2k extra each.

I had a few builders/developers offer significantly lower than asking. If I wanted a quick sale I would have gone with it. I didn’t, so held off. Received an asking price offer a week or two later.

I suspect you’d have had similar offers even if the room was fine.

The market has slowed sure but if you haven't been marketing it for long then there's no reason to drop the price by so much so quick. I would make a counter offer - £115 or £120k or just wait a bit.

If you take such a low offer now I think it puts you at a disadvantage as it looks like you are desperate and they may chip and chip as completion gets nearer.

A week is a short time really, use PropertyLog to see what other sellers of similar property are doing.

So it’s marketed at 135.
They offered 105.
You countered with 120.
They’ve stayed firm at 105.

I highly doubt they would now go to 110.

I think you have 3 options:
Option a) leave up for 135
Option b) accept 105
or option c) drop asking price to 120 which the EA now knows you are happy to accept.

I would do option C as it may well drum up some more interest with that reduction and get you a better offer.

Edit: I would drop to 125, the 10 difference may be enough for more interest and it shows you’re serious about offers around 120

It's only been on a week @gemini so why drop the price?

Yes I see that now. Sorry I thought it had been longer by the way the post was worded as being desperate to sell it.

Yes sounds really positive, one week and an offer. Give it longer at the moment and hold your cards close to your chest for now. The agent already knows you’ll drop to 120 so they should be able to use that to get further offers.
good luck!

If it's only been on a week then it's likely that you will get another offer. I'd suggest sitting tight for at least a week or two to see what else comes in.

I agree with pps especially if the money is needed for your DMs care. A week is nothing other than the strain on your mental health :( The builders who offered low see development profits! Hang on for another couple of weeks and see what the EA can come up with. Good luck.

Thank you for all your replies.

My DM currently lives with my sister - for the time being the money will go in the bank, although there's no saying that later it might be needed for care home fees.

How much you are likely to get for a doer-upper should reflect what one on the same street goes for all sorted. With yours at £135K a good one needs to be around £165 - £175+ for the figures to add up - given the it need updating.
But it is too early yet, builders will always try for a quick cheap deal, and if your Mum's is perfectly liveable in then it could be just the thing for keen FTBs.

In which case I'd hang on a bit, you've already had one offer within a week, so likely to be others.

The house is empty going into the winter and the market is falling. Builders are businesses and absolutely know they can get a deal - if not from you, from someone else. Be straight with them: thanks for the offer, its not what youd like, so you need to wait a couple weeks to gauge if theres orher interest. Explain that the cash will be necessary to fund your mothers care so you cannot sell under value.

We bought a house like this and then did a massive renovation project to bring it up to scratch for our family to live in.

What would a fully modernised house in good condition go for on the street? Renovation work is expensive now and the builder would want to make a profit out of doing it up.

As it's only been on a week though I'd leave it longer and see what other offers emerge from viewings. You probably don't want it empty for long though - house insurance is unusually invalid after 30 days unoccupied and empty houses can be targeted for crime.