FTB Advice

beccybobeccy

Hi Guys,

This is pretty much my first post but have been a long time user of the forums and the site.

Me and my boyfriend are FTB and have found a house we both like in Bristol. It is structurally sound, 3 bedrooms with a good garden and parking. It's priced at 145K at present but needs major cosmetic updating. It also lacks central heating and an upstairs bathroom. Both of which we would endeavour to change.
There is no chain as the lady that owned the house has died and her children are showing it. It's been on the market for just 2 weeks. We are looking for a property that we can move in to and do up over time so its ideal for what we want.

We have the funds to buy at the moment, a mortgage agreed in principle and a deposit of at least 20% of the asking price but we don't want to bid over the odds. Should our bid reflect the downturn in the market over the next year or so. We were contemplating a bid of 120K just to get the ball rolling with negotiations but is even this too high a jumping off point? I suppose a 35% would suggest that the bid be nearing to 100K but it seems like a bit of an insult...

I'm also hasten to think that we should hold our cards a little longer and wait a few weeks and watch what other interest the property has.
I know I may be answering my own questions here but sometimes it just helps to verbalise things. You may think me naive but 145K seems like a bargain for the property as is but I suppose I am only basing that on house prices over the last few years...

I would be interested to hear any advice or input any of you helpful people have. Sorry for the ramble!!

Beccy

huntersc

It's difficult to say without knowing more about the property. How much have others in the same road sold for? Have you got any quotes or doing the place up to a decent standard? If you have a Rightmove link that would be good as we can see what it's like.

Prices are dropping and properties like the one you mention are low down on the list of desirable properties right now so you need to take that into account. Furthermore the family who are selling the property can take a hit of 50% and still be able to sell (even if they don't want to) so unlike others who may need to achieve a certain price you have more room for negotiation.

Also, don't forget you are possibly in the top 1% of buyers in the market right now, the price should reflect the fact you are an FTB, with 20% deposit, mortgage and can buy quickly.

£145k seems cheap but I would want to see what a similar house sold for in 2007, take at least 10% off the price and reduce it by a further 30% more than the the building work is going to cost.