What offer to make on house?

Beckymarshall07

Hi all

Advice very much needed. We are FTB looking to make an offer on a semi. In short, house is priced at 130k. The vendor bought it 3 years ago for 107k. Theres not been too much work done to the house since it was bought in 06 other than central heating and cavatity wall insulation plus new boiler has gone in. House needs alot of work doing to it - we viewed it again yesterday morning and my dad whos a builder said it would need 20-25k spending on it (needs building work, new kitchen and bathroom and total redecorating etc etc).

Problem is if we were to make an offer what starting offer should we put in? The house accross the road sold for 119k end of last year and dont think it needed work. Very few sales come up on the street as its good location. Houses priced very near by are on 122k needing no work 115k fo another 3 bed semi. The average price of a semi in the area where we are is 115k. House has been on market for 3 weeks and has had lots of viewings. Zoopla says its worth 113k but couldnt factor into zoopla that it needs lots of work. BBC price index saying that semi prices in the ares dropped 3.5% april-June.

I'm thinking of going in at 100k but just conscious of vendor thinking that wouldnt take less than what they paid for it. The couple feel that their house is well priced :rotfl:

Unsure if to put in offer and if so what would be the starting offer?

maninthestreet

If an identical house, in good state of repair, sold for 119K, and up to 25K of work is needed on the house in question, don't offer any more than 94K.

Kez100

My advice is if you feel you have to buy at the moment go in very low to help you towards likely negative equity. It's unlikely you will get that sort of deal from a normal situation (i.e a couple wanting to sell to move on) - you need to be less fussy and look at far more property - lots and lots of it - and find those desparate to sell through reposession, divorce, forced move or a sale of a buy to let.

Beckymarshall07

Thanks guys. Forgot to mention this couple are not in a chain and have moved up to scotland so are wanting to sell quickly. E ' agent been on phone this morning saying they would look at 120k but still feel this is over priced. Think agent keen to sell and is in agreement with me.

Running_Horse

What they paid 3 years ago is irrelevant. What they will accept today is not.

Central heating, cavity wall insulation, and new boiler does not sound like "not too much work", and a new kitchen and bathroom and a few tins of paint should not cost £25,000, unless the building work is structural.

If you can get a big discount in this market then good luck to you, but you make the house sound like a bit of a lemon.

bo_drinker

The owner bought at the top of the market and done nothing since. If it's hanging then this is where they pay. Go in low, very low. They can only say no.

jamtart6

i wouldn't think of offering more than £100k for it!

Cannon_Fodder

£107K in 06, means maybe £117 at the peak.

Back down to £105K since.

But you have to factor in future price drops, so you don't end up stuck with a high LTV/negative equity.

Start at £95k, go to £105k if you're dead set on it.

Beckymarshall07

Hi again - thanks for the help. I'm not meaning to make the house sound like a lemon but it needs MAJOR rebuilding work hence the 25k spend.:o

EA been on phone again saying they are reluctant to drop and that they have 2 viewings on the property tomorrow - one a 2nd viewing.

Thinking of going in at 110k and putting in offer tomorrow. What do people think? Help!:eek:

Kez100

You won't get a bargain if you get into a panic or a bidding war.Do you want this house at all costs or is getting a deal more important?

Bear in mind the EAs *may* not be telling the truth just encouraging you to make a move because you feel cornered.

Beckymarshall07

We want the house but wont pay over the odds for it. We dont want to be in a bidding war but want to get in early if the other potential buyer puts in an offer.