how much would you offer?

johntheboy2001

situation is we previously rented on a street we likedd ( have had to move from since) and now we are aware of neighbour across the road planning to sell her home and we are thinking of buying, problem is its not up for sale yet although she has herself already moved. house is empty just now.
if we were going to jump in first and make an offer what should it be?
its an ex local authority house that she has recently done a 1 storey extension on side of. semi detatched, 2 beds, no driveway or garage and by her own admission needs decorated. also she said there is roughcasting work needed to side of house around £3k that she will not be doing before selling.
one at other end of street sold in feb 2007 for £152k it too had one storey extension on side but was in far better condition and had driveway & garage.
lady bought herself from local authority for £28,500 in 2003 and apart from extension has not done much else to the property.

so back to original question is it rude to make her an offer before it goes up for sale and if not what price would you start ?
any replies greatly appreciated.

jenny74

It is difficult to say as each area is different, but I would think that the one your buying is maybe worth more than the other as it has the extention... depending on what rooms the extention is. However as you will know house prices have fallen since then. I would say offer her £145k. I am a great believer in being fair from the start rather than offending someone you will have to deal with over the time of the purchase.

Jenny

Cannon_Fodder

Let her make the first move on price. As you say you could easily annoy her by being way out - then that scuppers the whole deal.

Although what she paid for it looks incredibly cheap, she may have the mindset that she spent years in it paying rent, so deserved a big discount. Making it £60k (in her mind) back in 2003 - 4 years house price inflation before the crash makes it £100k+, then the crash is offset by the decorating/extension etc...

Make your serious interest known. Hint at avoiding EAs fees. Compare what she first indicates to other properties now on the market.

johntheboy2001

also there is no survey or home report been done yet if we did express our interest who would pay for this? i know if she was to put on market she would have to pay for home report herself through EA.
have already approached her and she said she honestly had no idea, that it was a millstone round her neck and she was planning to sell on a fixed price not the traditional offers over system here in scotland.
one around corner for sale same house just no extension and it has a driveway & garage its on for offers over £115k

g_attrill

A much better house in 2007 for £152k, should put this below £120k now, although in some areas the price drops have been very slight. She might have a completely different idea of the value though, so she might refuse and you might need to wait for an estate agent to break the bad news.

Cannon_Fodder

Suggest she asks 3 Estate Agents for a "sensible selling price" valuation, and that you'll pay the average figure minus EAs fees...

johntheboy2001

thanks for the replies, i had the £130k figure in mind

can i ask will it cost her anything to get EA valuations?

Cannon_Fodder

No, it should not cost anything. They effectively use the valuation visit as an opportunity to sell their services, to get the business...she just needs to nod poiltely, say she has other EAs to consult and will get back to them when she is ready...