What would be a good offer?

thriftisthenewcool

Hi,

We are looking at buying a house which is on the market for £190K. But it needs atleast 20-30K spent on it to bring it up-to-date. (20K - just enough, 30K - a good job!!). What would be a good initial offer for this property. As such we are first time buyers and havent much clue as to how it all works. My OH thinks 135K would be a good place to start. Im not sure if its a bit too cheeky, but done want to burn our pockets either in this current climate!

Your suggestions please...

Many thanks for reading.
Jan

Cannon_Fodder

Depends on whether it has already been priced to allow for the work that is necessary.

Use http://www.nethouseprices.com/index.php?con=Search-Sold-House-Prices to research that property's previous sold price, plus others nearby more recently, to see what "the going rate" has been.

http://www1.landregistry.gov.uk/houseprices/ will tell you roughly what has changed in your locality to prices over the years, so apply that to the previous sold price and see where you get to...


I'd expect £135k to be considered too low. They would never expect you to come above £150k from there, so would be viewed as time-wasters. If they would be happy with, say £155k, why would they put off lots of potential viewers by starting 35k higher - that's not to say they 100% wouldn't, which is why the research is necessary, but its unlikely.

Under stamp duty, close to £175k, is possibly what they are aiming for, as they must know that is an important "price point" in negotiations (or their EA would).

wheresmydoshat

i like to start low, but even i think 135 is way too low. you won't be taken seriously.

it depends how much the house would be worth after some updating, but at a guess you'd probably want to start with an offer of about £165k, going up to 175k max.

i don't trust EA's, but i'd assume the 190k price tag is taking into account that it needs updating.

thriftisthenewcool

I have checked the prices of other similar properties on the same road and they were 200K in 2007. And it looks like no houses have been sold in the same road for the past 2 years. So there is no way of judging what would be the right price for the house, in its current state.

So going back to my original question - your thoughts please!

Jan

milliemonster

What about sold prices of similar properties in the surrounding area not just that particular street?, what are current asking prices of similar properties in the surrounding area and their condition in relation to this one? (I appreciate asking prices are not directly related to house value but all this information together can make you better informed if this house is priced to reflect the work needing doing.)

What is the work needing doing? you say it needs 'updating' is this just general decoration that is not to your taste? or are we talking about structural changes, kitchens, bathrooms, central heating that is unliveable at the moment?

If you are going to offer such a low asking price on this property you need to have a reasoned argument as to why you feel it is worth much less

Emmzi

20 - 30k is a hell of a lot of updating.

break down for us what you think needs done and your estimated cost.

thriftisthenewcool

Well the list of things:
1) The Kitchen needs to be redone completely
2) There is only one bathroom on the ground floor. Atleast one bathroom needs to be put in upstairs.
3) All carpets and flooring need to be replaced
4) All the Wallpapers and paints
4) The Master bedroom looks like things have been just added and taken off. So quite a lot needs to be done there.

These are the things that come to mind right away.

Jan

ess0two

2/3/4 are probably personal choice to you,a kitchen is a must,debatable whether you'll get a decent amount off.

confused31_2

Im in a similar situation i have seen a house for 170,000 pounds, the house was sold in 2005 for 110,000 and it has had no work done on it, it would need new windows throughout, rewire, new kitchen and bathroom, carpets throughout and the roof looks like it needs replacing.

Now i reckon the the work will cost about 20 to 25000 pounds to get done, sold price for a similar property in march 2008 was 203,000.

Im thinking it was sold to relatives from older relatives has when the house was sold for 110,000 pounds in 2005, other houses similar where going for 190,000 pound, or could it be there are more underlying problems with this property?

Im thinking of offering 160,000 and see what they say, or should i go lower#??

thriftisthenewcool

The thing is we are getting a brand new built 4 bed about 3 miles away for abt 190 K... the thing that is breaking the deal is good schools!

Worth keeping in mind that the brand new one comes with a 10 yr guarantee, all fixtures and fittings, 3 bathrooms, and all integrated applicances.

Why again? Good school near the house!

Jan

confused31_2

thriftisthenewcool wrote: »

The thing is we are getting a brand new built 4 bed about 3 miles away for abt 190 K... the thing that is breaking the deal is good schools!

Worth keeping in mind that the brand new one comes with a 10 yr guarantee, all fixtures and fittings, 3 bathrooms, and all integrated applicances.

Why again? Good school near the house!

Jan

i wouldnt touch a new build