have found 'the' house, but not sure what to offer......help required!

[Hatesponge]

Have been to see a house I really liked. I now like it even more. It is in a real state (repossession) but has HUGE potential imo.

I've been through it room by room and think that all the basics could be done for £5k or so (new carpets/floors in most rooms, every rooms needs repainting, bathroom needs tiling, couple of external doors to be replaced, plus all internal door furniture, most of the light fittings, sockets etc). Long term, I could easily spend 3 or 4x that (kitchen is tatty and would need to be replaced, internal garage to convert into additional reception room, driveway needs paving to front and rear garden needs to be decked, new fencing, etc etc!!).

Its up for £225k. I was planning to offer £175k (to try & avoid stamp duty) but I'm not sure that will secure it. On my salary I know I can get a mortgage of over £200k BUT problem is I only have £20k at most for deposit.....which I know is going to restrict how much I can borrow in any event. And if its over £175k, then I have to try and find the money for stamp duty as well

I've been told by the agents someone else has already made an offer which had been accepted however theres some problem between them & the company selling it, and so its still on the market. the agents aren't going to tell me what they've offered are they? or what the charge is on the property? I really want this house, but theres no way I can face getting into a bidding war, which potentially I cant afford to anyway. But I so love this house. What do I do?? Help please

Go and talk to a mortgage adviser and get a mortgage offer. Only way to actually find out what someone will lend you.

Well in your shoes, I'd still offer the 175k, as you don't know what the other offer is. If they laugh hysterically then you know you're too low. Have you applied for preapproval yet, to see how high you can go?

one of my friends (well friend of a friend) is a mortgage advisor however he is (most inconveniently!! ) away for the next week; he went through some figures & stuff with me a while back, but I was only looking at borrowing about £150-160k then which he said was no problem (I was looking at cheaper houses to start with, but I have delusions of grandeur )

I think i might try and offer the £175k, am just a bit scared of the hysterical laughing response, I hate the thought - and I know this will sound silly - that the agents will think I'm stupid for making such a low offer

Do NOT give a toss about what the agent thinks. If they have any sense, they will think 'hurrah, I might make some commission on this one, rather than none at all'.

Agents have to pass all offers on to owners, that's the law.

Agree with edam, it's worth making an offer and see what happens. In times like these you are in a good position if you have the money. My sister put an offer in £150k under the asking price on her house and it was accepted (cost £400k) so you never know.

IME (am first time buyer with an offer recently accepted, sorry sorrento ) I think with that deposit and looking to mortgage at £200,000 you'd need to be earning around the £50,000 mark, plus your rate will probbaly be rubbish because the loan to value ration is quite low. If you feel you can afford it, then stretch to the £200, but offer £175 first.

I have offered on a repossession about 4 weeks ago, it was on for £179,000 I offered, £165,000, £175,000, £185,000 (!) and each offer was rejected, so I think a lot of it has to dow ith the local market and how good a buy the house is. I am in Bristol.

How long has it been on for? If you're not sure download propertybee.

I can afford a mortgage of £200k but I'd obviously prefer to get it for less if possible Have decided I'm going to be brave - well for me anyway, offer the £175 and see what happens. A lot I guess will depend on what the charge on the property is, and what offer the other potential buyer made (which apparently was accepted but then there was some issue over surveys etc which hasnt been resolved).

According to the agents the house was repossessed in October last year, & put on market then, but I don't know how long it was between then and the offer being made on it. However I would have thought after 6 months the bank (or whoever repossessed it) must be quite keen to get their money back.