House with potential - how to work out an offer

rio

I'd like some advice on a house we are considering. It's position and size are brilliant, but it is absolutely filthy and I mean filthy - the owners have a menagerie of animals wandering through it and I doubt it has been cleaned in years. If we bought it we would have to have the place fumigated and professionally cleaned before we even stepped over the threshold, plus there would be the cost of new carpets and possibly a new kitchen (although we'd have to see how that scrubbed up). The place has been up for sale for ages - and I can understand why. Despite all the disadvantages it could be a place we could really make into a home and somewhere we could live long term as it is in the catchment area for the best schools, and as it was sold last in 2003 we believe it is probably structurally sound; although of course any offer would be subject to survey.

Has anyone any experience of buying a property in this state? and if so what sort of offer did you make? The house has been for sale for four months whilst normally ones in that road go in a matter of days. We estimate it would cost us 10K to get the house up together enough so that we can move in and then a further 10k to get it how we want it. It is on the market for 210K

Doozergirl

What has to be done to the house? Will it need new windows, rewiring, plumbing or any building work? £20k is a very substantial budget.

If it is going to cost you £20k to get it to scratch, then I wouldn't be looking at paying more than £180k (that's if the house would be worth £210k finished) to allow you margin for error and a bit of added value.

Are you on good terms with the agent? I'd ask them what other feedback has been. If it's so bad as to deter virtually anyone from buying it, then you may be able to strike a deal.

Doozergirl

By the way, I have bought property in worse states, I bet!

The formula is to take a conservative estimate of what the property is worth finished, take off the cost of work (having drawn up a detailed budget), then take off what you want to make 'profit' and that's your offer. It can't really be based on what the owner wants.

RHemmings

I'm not experienced at this sort of thing. But I would get a quote or quotes for all the work and take them along with me to negotiations. If you have to negotiate access to the house for it to be viewed for a quote, so much the better. To me, that would make the cost more "real" and easier to use as a negotiating tool. Others with more experience may disagree.

rio

It will need new windows, completely new fencing to front and rear of property removal of wisteria from front of house and possible rendering/repair of damage caused by wisteria etc. Replumbing of utility room (they told us about water leakage and that it was a bodged job). New front door, new skirting, possible new kitchen, carpets or flooring for 7 rooms. It would probably cost 14k to get the house servicible. Then 6k for general redecoration, changing suite in shower room (which is to my mind unusable in its present state).

Tassotti

What do decent properties in the road go for?

Suzy_M

- absolutely filthy and I mean filthy - the owners have a menagerie of animals wandering through it -

My immediate reaction to a menagerie is check out what is under the floor as well as the floor surface. Neighbours of ours had several animals and despite them (the animals not the neighbours) being supposedly house-trained after 10 years the floor joists on the ground floor had to be replaced. - (Not sure if the kids were house trained though! )
Also if the house is that filthy I'd replace all the kitchen units for hygiene reasons as all the unsealed edges would have absorbed all the gunk and gunge - not to mention what has accumulated under and behind the units.

lilyann1

We looked at a house in a similar state and i am one that can see potential,but I could not face having to move into filth with 3 young children.Shortly after we had seen the house the price was dropped from £340k to £320k and then subsequently £299k!!! It has now been sold so if you're up to it then you could put in a really low offer!!!
I would tell the EA when offering that your offer is so low,because it is filthy etc etc and if it were in a better state then your offer would be higher.This might force the owners to do something about the filth themselves!!!

rio

Thanks for all the advice. The house is priced in line with what properties in that road normally go for, although obviously they are in a much better state. I have told their EA that the property is filthy and that we would base any offer on what work needs to be carried out, both to clean it and make good necessary repairs etc. Strangely they seem to be marketing it as if it is top class condition, rather than in need of care and attention - this is the second EA that it has been on with. EA said that they could see my point and as we have bought through them before I think they know that we are serious about the way we go about things. Very good point about the kitchen, as no doubt the cats have been climbing over the worktops etc. We have a friend with a holiday cottage who would be prepared to rent it to us just covering his costs whilst the work is done, so that doesn't really worry us. We just want to pay a realistic price for the property, not necessarily make a profit as we would stay there for at least 10 years, but just to make sure we don't fritter away any of our hard earned cash!