FTB - How much to offer?

kidcat

We are FTB and have seen aproperty that we would like to place an offer on, however having read all the advice oh here I am really unsure what to offer.
The house is currently being sold at offers over £120k, however its been empty for over 12months and although it had previously had an offer accepted (8 months ago) that sale fell through.
We are the only people to look at it since December and the agents are calling us every day to ask whether we want to place an offer. ALthough they will not let us see the HIP.
Have viewed the house for the second time yesterday and it needs alot of work, including
Complete redecoration
Extension walls need to refaced
Flat roof replaced on extension
Rewire
Install Central heating
New doors
Some new windows
Toilet in bathroom needs installing
Complete kitchen
Carpets
Polystyrene tiles on all ceilings need removing and replastering


The last house on the street was Oct 09 and sold for £77500, this needed some work but not as much as the one we are looking at, it was also two bedroom semi whereas we are looking at a three bed mid terrace.
Looking at the amount of work and previous prices for the street I am inclined to think its only worth £85k but obviously this is so much under the asking figure I wonder whether I am very wrong.
Its being sold by family of elderly couple who are now deceased.

TIA for any help or words of wisdom.

not_loaded

Its being sold by family of elderly couple who are now deceased.

Guessed that before I got there!

If they’re pushing for an offer, I’d push for the HIP.

No reason at all not to show it to you.

kidcat

not_loaded wrote: »

Guessed that before I got there!

If they’re pushing for an offer, I’d push for the HIP.

No reason at all not to show it to you.

Apparently the agent say that they are protecting their clients and that they do not have to show HIP until confirmed offer is made and accepted.

phlash

Sounds as though you are thinking with your head which is good.

You need to offer what you are happy to pay for it, nothing more.

Cost up all the work in a schedule to work out what it costs. If you are prepared to offer, do so, but hold back the costings. When they come back laughing at a 'ridiculous' offer, go back at them with the analysis and say it is all on paper and it is a well considered offer, at which stage raise the offer slightly and tell them that is it.

They will then know where they stand, and hopefully resign themselves to the fact that the work needs doing.

OR Offer a higher offer on the condition that they carry out all the work to your satisfaction. They will probably wince, so then you can carry out the process above.

not_loaded

kidcat wrote: »

Apparently the agent say that they are protecting their clients and that they do not have to show HIP until confirmed offer is made and accepted.

Complete and utter rubbish. No wonder they haven't sold it!

kidcat

not_loaded wrote: »

Complete and utter rubbish. No wonder they haven't sold it!

My thoughts exactly, my friend is just putting her house on the market and I was telling her to avoid the agent like the plague!!

kidcat

Thanks phlash, it just seems so low compared to asking but my gut says its not priced anywhere near its value currently.

not_loaded

phlash wrote: »

…Cost up all the work in a schedule to work out what it costs. If you are prepared to offer, do so, but hold back the costings. When they come back laughing at a 'ridiculous' offer, go back at them with the analysis and say it is all on paper and it is a well considered offer, at which stage raise the offer slightly and tell them that is it…

I’m currently the probate administrator for my mother’s flat.

I’ve carried out this exact exercise (as the seller) to establish what would be reasonable and acceptable. I have legal obligations to the other executors and beneficiaries, and I definitely consider this one of them.

Anybody acting Jimmy Green with you is not doing their job properly for the estate.

Incidentally, I would be furious to find out my EA was acting like this one!

Snippa

Apparently the agent say that they are protecting their clients and that they do not have to show HIP until confirmed offer is made and accepted.

Utter tosh. The HIP is surely vital to look at before you put an offer in? It's the only way you can know how much to offer. There were a couple of places I was serious about offering on, until I saw the Home Report (Scottish one), and realised the scale of work needed.

I'd tell the EA to stop harassing you, that you're not interested until they can show you the HIP, and if they're unwilling to do that, you won't be going any further.

Eric1

kidcat wrote: »

Apparently the agent say that they are protecting their clients and that they do not have to show HIP until confirmed offer is made and accepted.

Last week one well-known EA in my area told me they would be happy to email the HIP to me. No offer was mentioned.
Whatever they are "protecting" is apparently not exciting

hethmar

I cant understand - if a 2 bed semi on the street sold for £77k last October, why is a three bed terrace on at offers over £120k. What does it offer that the 2 bed semi didnt - apart from an extra bedroom but then its terraced rather than a semi?

If you know the 2 bed semi went for so much less, why are you contemplating paying an extra £10k plus for something which you say is in worse condition?