How much to offer on an "offers over" property.

[LancashireButterPie]

DC has found their first home. It's basic, appears structurally sound but is neglected and filthy.
It has potential and the price reflects the condition.
It's on for offers over £180k. It only came on the market last week.
What would you offer?

There are so many variables with this.
The location, the recent market, what work actually needs doing, the cost of local labour for builders and materials.
If they have a look at houseprices.io with the postcode of the address which can be found from estate agent or Google Street view and then a postcode search on Google then a realistic amount can be calculated. In some areas property prices have dropped by maybe 10% in only the last three months. Get them to have a look at "Charlie at home" and he's also got a website that collates actual selling prices which is more accurate according to some than right move or Halifax indexes. Land registry is three months or even six months out of date. Labour costs have gone through the roof which as a simple search on Mumsnet will demonstrate. And to a first-time buyer, with respect, being able to recognize issues that could be costly to remediate should be picked up by a qualified surveyor but that might cost upwards of 300 pounds but will give a realistic picture. Sum surveyors if they are asked will provide an estimate of how much it is to make good any issues.
I've owned five houses over the last 40 years and learned lessons on every one of them.
Godspeed to them!

Start at less 10%

Thanks Antik. They will definitely get a thorough survey done. They just want to make an offer that is financially beneficially to them but won't insult the buyer.
House is an a great location, we have extended family who are trades and can hopefully help with any plumbing or electrical issues and DH is great at decorating.
Would MN think offering say £183 be seen as too cheeky?

Really? OMG never thought of going under.

Depends which area and how the hoyse market is moving. I'd offer £180k on the grounds that it's taken off the market, first time buyers hold all the cards really.

It’s a buyers market. Especially first time buyers

ignore the offers over bit. Offer £180

I would ignore the offers over too.
He or she needs to research the market in the area carefully and not rush to offer before they have done this. Is it moving quickly or not? Many areas are very slow and falling but possibly less the case at the lower end of the market. He/she also needs to assess their finances really carefully.

in our area houses sell 20k over, so look at the area

I would offer under too. It's not offensive to the seller! They can just say no. We put in a very low offer on the house we are buying just as a starting point, fully expecting to have to increase, and were very surprised and happy when they accepted it. It is indeed a buyer's market.

Depends how much they want it and are willing to pay. If it's the perfect house and they'd be devastated to lose it then offer asking on the basis it gets taken off the market.

Or offer what you think it's worth but be prepared to lose out. We offered 10% under on our 'offers over house' and landed on 6% under. But in our case we weren't desperate to move, it had been on the market for 5 months and reduced twice in that time

Thanks everyone. He loves the house, it's close to his work and is an area of outstanding natural beauty. He's currently paying more in rent than the mortgage/council tax on this house would be. To be honest, it's the sort of cottage I'd visit on holiday (if it was clean!).
He is going to put in an offer today 😬.

If it's in an AONB then he should be very aware of permitted development rights and possible planning extensions because the designation can seriously restrict future expansion. Also he should ask about restrictive covenants, and something called chancell tax (labour have removed funding for churches repairs) so they're pertinent questions for the solicitor, unless he's an internet sleuth and does his research.
Also should probably check with local planning maps to see if it's in a conservation area because that adds even more restrictive planning constraints even in terms of changing Windows.
Godspeed

I’d start under, maybe 170. He’s a first time buyer so nothing to sell which puts him in a great position.

It really depends on the area but if it's not a closing date no harm in trying low first.

Here they set offers over below the value to generate interest, plus the market is very hot. Offers over 180 might have a home report value of 190 or more, and easily go for 210. It could be worth a post on your local Facebook group to see what the local norms are.

Just to update those who kindly advised us, DC put in an offer of the exact asking price (not a penny more) and it was accepted straight away.
Thanks everyone.