how much would you offer for this house?

[Jampot]

we're currently in rented accomodation having sold our house in march. Ive seen a house today which needs work. Its a 3 bed semi about a mile from the childrens' school (historically an overpriced area). The house will need:

full rewire
central heating and new boiler
kitchen
a pre-fabricated extension to lounge will need to come down and be rebuilt.
total decoration and flooring

in addition although the bath has recently been replaced with a shower (elderly disabled person lived there) and tiled, i would fit a nice full bathroom suite and knock toilet into bathroom too.

And whilst replacing lounge extension would also want to carry it across to have kitchen extension.

its on the market for £249k and is a deceased estate. We have about 190k in the bank

I looked at a house over the road in much better nick at xmas time for 285k - but the sale appears not to have concluded (according to house price database).

what would you offer?

[mumblechum]

Well, you're going to have to spend the best part of £100k by the sound of it, so bearing in mind that there'll be a price ceiling for that type of house in that location, work backwards from what it will be worth with the work done (dead easy, that, the way things are), factor in the renovation costs and offer the difference. So if you think that done up well it'll be worth £300k in today's money, offer £200 ish and be prepared to go up to £250?

[shirleyghostman]

knock 25% off the asking price and put that to the grubby estate agent.

[madcol]

Are you a cash buyer with 190K in the bank?

[mumblechum]

Doh meant £225k.

[Jampot]

well, i was hoping we may be able to get it for the cash we have then we can apply for a mortgage to do the work - [hopeful emoticon]

[noddyholder]

210

[CantSleepWontSleep]

Work that needs doing (as opposed to you wanting to do to improve it) will have already been taken into account in the asking price, so I very much doubt that you'll get it for £190k if it's been valued at £249k.

I'd prob offer £210k.

Depends how much you really want the house though doesn't it. Would you be gutted not to get it, or do you only want it if it's a bargain?

[nooname]

Well my advice would be tell the agent you are cash buyers who could do quick completion but can't pay more than 190k.

If its a deceased estate the heirs probably just want the cash out of it quickly and in this market that is v v unlikely to happen.

Remind the agent that prices may well fall 20-25% so 190k now is a good offer.

Then just sit back and wait. Even if they say no immediately they will probably come back to you later when they realise they don't have a hope in hell of selling it!!

Capitalise on your position. It's a buyers market for sure!!

(This is said from someone trying to sell btw)

Good luck.

[Gobbledigook]

If I had 190K deposit and could get the same on a mortgage I'd do that and buy a much nicer and bigger house for £400K.

Helpful I know..

[Jampot]

oh no the work does need doing.

I wouldnt be gutted if we didnt get it but obviously dont want to pay over the odds for it.

will speak to the agent

[1dilemma]

House near us with similar level of work needed was on market for 500K sold for 250K sold after work for about 730K and would currently not do on for more than 660K at best (would sell for less if at all of course)
I certainly wouldn't offer more than 190 and would like to say 150 only then would you not be loosing money on it straight away but it does depend how much you want it!
Why not offer on the one over the road at 245K?

[themoon66]

Not sure what part of the country you are in, but round here it would be in the region of 100k.

At the end of the project, it will still be a three bed semi.

[Jampot]

ive spoken to the EA and explained our situation. I havent offered yet and explained why but have said I will watch it and come back if it isnt sold in a couple of months. They have said they will keep me informed too as to the progress. She indicated they would probably accept an offer of 10-15k below the asking price. We discussed figures and I explained that they didnt add up. its new to the market and they have arranged 8 viewings on it already. However the particulars do not indicate what state the property is in.