Offer on property

[GlassCaseOfEmotions]

Hi all! Just need some advice on what to do please.

We desperately need to move to a bigger house (we've not let it be known to estate agents that we are desperate, just that we need a bigger property).

We have seen a house that we both like. 3 bed, 1 bath, converted garage, big enough garden and off road parking. Near to lots of schools/ shops/ easy commuting. In an area that would be ideal for us.

The house has gone through probate. It's been on the market for about 8 months and only had 1 offer. The price has recently been reduced by £15,000.

Negative points:

• it's excessively dated and needs modernised (kitchen and bathroom need full replacement, all carpets need ripping out, full redecoration needed)
• ex smokers property. The smell was very strong
• some houses on the same street are a little run down
• new boiler system required (currently has back boiler and immersion tank)

Estate agent said the vendors are keen to sell.

Property is listed for offers over £200,000.

Another property, same layout but garage hadn't been converted, sold in June last year for £202,000 on the same street. Properties currently on the market on that street are listed for £230,000 but require no work.

I'm of the mindset 'you don't ask, you don't get' and want to offer less than asking price, taking in to consideration all the work that's needed (as well as work needed that may not be immediately obvious). I was thinking of offering about £185,000 originally. My partner thinks we would be better offering £192,000. I'm not a seasoned buyer (current house is my first) but partner has bought a few houses previously. My current property I bought for just under 10% of asking price (after it had been reduced) and that was my first and final offer.

What do you all think we should offer based on what I have written?

£185 is a good starting point and see what they counter offer.

Yes start 185k sounds sensible. It's not going to be offensive.

@blackcherryconserve thank you. That's my thought process; they will counter offer and therefore I don't want to overpay. There's a lot more wiggle room at £185k compared to £192k!

Thank you! I worry about offending the vendors and turning them sour 🤣 but I don't feel 7.5% below asking price is ridiculous, even with it listed as offers over.

Totally make 185 your opening offer. It's not so low it's cheeky, and you might end up at something like 192 or 3. If you start at 192 you could end up paying 196-ish. They'll know what they're prepared to take I should think it shouldn't actually hold anything up to engage in a bit of bargaining.
Good luck!
We're just about to offer on a house ourselves...😁like today!

I agree with people saying 185k sounds fine as a starting offer. It’s not going to be an easy house to sell in its current state & has been on the market for 8 months. I wouldn’t expect them to accept 185k but it starts the conversation. You will probably end up paying more - maybe even 192k but if you start there you will probably end up paying more!

How exciting!! I wish you all the luck in the world and hope your offer gets accepted 🤞🏻🥰

Thank you, I didn't think it was cheeky but DP outright said 'absolutely not', as if he was insulted himself by it haha!! He's more a first and final but will sway slightly man, whereas I'm willing to negotiate and stand firm on an offer if it comes to it (a lengthy background in sales and a qualified negotiator, although in a totally different field and not requiring money negotiation 🤣, helps keep my nerve with these things!!)

It's a highly desirable area and estate, so the fact it has only had 1 offer but countless viewings speaks volumes to me! EA have already said that feedback from viewers is it's too dated and needs too much work.

To be truthful, I don't feel it's worth more than £190k considering the work that's needed (new kitchen up to 10k maybe more, new bathroom up to 5k, back boiler removed and combi boiler fitted in new location is minimum £7k, new carpets throughout up to £2k, new front and back doors up to £3.5k, eventually new windows up to £10k, plastering throughout up to £3k, redecoration up to £1k, repointing up to £500, new fencing up to £2.5k). That's just the things we know about and that need done! At a push, I would be happy to pay £192k in honesty, but not really willing to go much higher, if at all!

I wouldn't buy an ex-smokers house, it's worth £0 to me. If you want the house, you need to make a big deal about that and the need for modernisation. Perhaps get quotes for how much it'll cost to do up and reduce a further 20% off that quote to cover VAT. Do not pay over for this house, you'll end up in negative equity.

£185 is a reasonable offer - as long as you dont then try to rip them off if the survey shows other things need doing. Tell the agent how much you estimate the necessary work will be - but some of these things are not essential and may not have been done on property you are comparing it to.

Sensible people dont like houses going through probate, they may have other offers now it's through probate.

Thank you. My mum is an ex smoker (as am I, but never indoors) so I know the work required to get this sorted. I did make a big deal about it at viewing and again on the feedback I gave to the agent when they requested it. I would also list all the work required when making an offer, although the agent is already aware of most of it.

We plan to buy to live in long term (until retirement at least (which is 31 years away for DP and 36 years away for me!) so the equity isnt something we need to consider for a long time yet!

Even more reason not to start at 192k if that’s your absolute top price.

If your partner won’t agree to making an offer at 185k I might go up slightly higher but definitely no more than 190k

Thank you. If the survey came back with major work that's needed, we would have to pull out of the sale. We don't have an unlimited pot of money to throw at the house. While the kitchen and bathroom are in usable condition and we could live with it for a while, it would take us a long time to save up again to get them done if we had to pay for a whole new roof, for example.

I wouldn't make an offer without having it in mind there could be hidden costs, but we would reassess as and when it comes to a survey flagging issues. Absolutely don't want to rip anyone off.

The house went through probate prior to being put up for sale, so that isn't what's put anyone off offering.

It would be my absolute top price for the property, given all of the work needed. If it was just a new boiler and redecoration, I'd be happy to offer at asking price.

My current property needed a lot of work which cost £40k, without adding up redecoration and new boiler, so I'm going in to this with my eyes wide open.

Hopefully DP will see sense and agree £185k isn't unreasonable when I show him in black and white all the costs and other nearby sold prices 🤞🏻

Just to add, everything I have listed is essential work.

The house is smoke damaged throughout (some places worse than others), kitchen and bathroom have never been updated since bought in 1940's from the looks of it, back boiler and immersion tank are inefficient and expensive and you can't fit a combi boiler in a chimney breast that's in the middle of the living room, repointing needs doing as it'll lead to leaks and damp (I've dealt with that enough for all our lifetimes in my current home!), carpets are worn and thin with no underlay, walls are possibly asbestos so will need fully skimmed throughout and some areas need full removal and replastering, front and back doors are a burglars dream, windows will need replacing eventually as they're the very old double glazing so inefficient, fence is broken in places and we have 2 dogs so needs to be secure. After all of that, it of course would need to be redecorated.

I can say with 100% certainty that none of this work was needed for any new owner buying the other house, or the other properties currently for sale on the street. We have either viewed them, offered on them (and been gazumped) or can see these things from pictures (for those outside our price range).

I was in the position of selling a probate house a few years ago. We actually agreed to sell to someone ready to move and turned down a higher offer where they still had a house to sell, just wanted it gone!
So have you already sold is the question I would be asking as a vendor.

Tough one.

If they had been at £200k for 8 months with 1 offer I think £185 is a good first try and would stand a fair chance, but you say they have only recently reduced to the new level.

My guess is they will want to test the market more at the new level before deciding to move down further if they were originally willing to leave it at £215k for 8 months.

Still you never know and if you don't ask you don't get. Remember to do the best you can to sell your offer to the agent based on your evaluation of recent prices in the area and also the amount of work done, and how procedable you are.

We haven't already sold, so we know this puts us on a back foot.

However, agent is confident we will sell quickly (literally put on the market days ago and already got viewings booked in) and our home is a first time buyers dream (no structural work required as its already all done with guarantees, no big outlay costs- brand new boiler already, for example, with guarantee and neutrally decorated, good communiting location, big but low maintenance garden etc). Basically ticks all the boxes of what a single person or even small family would want, and at a reasonable price!

Thank you. I can see your point with wanting to test the market more, it was reduced a week ago but no other viewings except us and no one who previously viewed is interested again according to the agent.

I couldn't say how long it was at £215k for or whether previously reduced to that price etc, I forgot to ask the agent in honesty!

Not having yet sold we know will put us on a back foot, but I'm confident we will sell quickly.

I’m overly invested now - I do love a project- let us know how you get on! Good luck

I don't think offering £15k under is offensive. Like you said, they're almost definitely going to counter offer on it so it leaves room for both parties to negotiate without anyone feeling hard done by. Even if they won't negotiate, you won't have offended them so hard they won't listen to another offer from you.

We’re currently selling and just knocked £10k off our price. We wouldn’t accept an offer 7.5% under that, but would probably meet in the middle if we didn’t have much interest or had been on the market quite a while.

Depends if it was priced to sell and is already discounted. The EA would tell you straight.

I'm already overly invested too, if you can't tell 🤣 I will keep you all updated!! Looking to offer tomorrow

Thank you, that's really great to hear from a sellers point of view! I feel the £185k leaves that wiggle room for negotiation, without anyone feeling too put out!

One thing I would say, is actually offer a slight odd number 185500 or 186.