Offer declined - Not sure if I should offer more or walk away

[Manifesting2025]

Good morning, first time solo buyer here with a budget of £175,000.

I have been searching for a house for the past 5 months and I think I've finally found "the one". It's a 2 bed semi on at 165k. It's currently vacant (ex rental). I've done some digging and it was first listed in November 2023 for 185k, then reduced to 175. They accepted an offer in May 2024 but the sale fell through a couple months later. It came back on the market at 170, then reduced to 165 in October.

I viewed the house last Friday and offered 160 which was declined straight away. The estate agent said that the vendor felt it was priced correctly and that she wouldn't accept a penny less than the asking price. I told the agent that I'd think about it over the weekend and get back to her.

I'm really struggling to make a decision though. The house has potential and ticks all the boxes. It's in a lovely, quiet area but it needs some work. The heating system looks like it needs updating (I think it's the original boiler from 40-45 years ago), the windows/front and back doors need replacing (definitely the bathroom window anyway as the frame is rotting away) and the driveway doesn't look in good condition either, potholes etc. This is all before decorating, new flooring. These are the things that I noticed during the viewing but there could be more that a surveyor would pick up. The vendor has installed a new bathroom suite, but that's it I think. I've also checked sold prices in the area and the last 3 houses on the street sold for 157, 166 and 160k.

I know 10k won't cover all this work and my savings would be completely wiped out too which scares as I'm on my own and if I lost my job, well, I'd be fucked basically. I'm trying to not let my heart rule my head but it's difficult as I really do love the house.

What would you do if you were in my position?

You don't mention when the previous houses sold for those prices, if they were in similar condition, any extensions, larger plot etc. Regardless they're not currently available, and this one is, and you're not setting a new ceiling for the street, so if it is right for you I wouldn't loose it for £5k.

However much you think work will cost on a house, it will always cost more. From the sounds of it, you don’t have enough to pay for the work and it’s never a good idea to wipe out your savings. I’d wait for something else personally.

Ex-rentals are notorious for being money pits. Landlords do the bare minimum in maintenance and upkeep.

I would seriously consider what you think the house is worth to you especially as you have been looking for 5 months. To me 5 months is a long time to look for a house but as you are a 1st time buyer I guess there is no rush unless you are paying a high rent.
I think if you leave the offer on the table and then decide a few weeks later that this is the house for you at good enough price then I think the sellers of the house would then have the upper hand as they would know hat there is not a house out there that you prefer. I would try to wrap up your purchase now as long as you feel the house is priced accordingly. Maybe meet them half way or get the works to do costed out. If the survey shows something that you are not happy with or prepared for then you can renegotiate. Hope you get a good outcome. .

Is there a lot of interest in it at the current price? If not then I would leave your current offer with the agent explaining about the works etc and then carry on looking. As you have said you are buying on your own and the works that need to be done need to be done pretty much straight away. Also you have checked the sold prices and have offered around that so stick with your offer. If there is then its up to you if you want to increase but I wouldn't meet the sellers expectations.

Tricky one @Manifesting2025. It comes down to how much you like the house vs how long you are prepared to wait for other properties and how much you have in your budget for repairs, which are likely to cost 10k plus, possibly much more as you are likely to discover other things- this may well be why the first buyer pulled out. I would ask the estate agent why the first buyer pulled out and if it was because of a bad survey- they may be open about this or not! If you decide to proceed, I would look into getting home buyer's insurance.

You don't mention the relative size and condition of the three recent sales on the same street. What do you think this property is worth when you compare to other recent sales? Is the market in you area slow moving generally or is it just this house, suggesting that it is over priced. Overall, I think the market is falling in many areas and is very likely to fall more in the latter part of the year and hit a wall rather when the SDLT thresholds rise at the start of April. I expect there will also be a lot more properties coming on the market from around March onwards, as that's traditionally been the best time to sell.

On balance, I would probably hold firm on this and email the agent to say that your offer remains on the table at present but won't be increased and that you will continue to view other properties. They may come back to you but, if not, you are very likely to find other properties which are just as attractive later in the year and quite possibly cheaper because of the higher SDLT.

This could be worth trying (maybe at £162k). Explain that you know the vendor said they wouldn’t go any lower, but you are in a good position and, in the absence of any other offers on the table, you think it’s worth putting yours forward. If they reject it, tell the agent you will leave it on the table, but are not prepared to increase it any further at this time.

It’s not a perfect house if it requires lots of work and particularly if it’s ex rental. My son and DiL moved to one and it needed scrubbing from top to bottom, aside from the work.

I agree that the survey may well have thrown up something that will be expensive to fix.