How much to deduct from offer for doing work?

jozbo

Some advice on offering would be greatly appreciated...
We saw a house today that we have now decided to put an offer in for. Before doing so I intend to see it for a second time (at a different time of day, during the week rather than weekend) and I have in mind to bring along a contractor who can give a rough quote of the work that needs doing.
It's a 2 bed house being sold for probate and the asking is £168000 - we have enough mortgage agreed and deposit to go up to 185k (including ALL work and most of what's in the kitty) but obviously want to get a good deal.
This is in a big city and properties of this type in the area are have been selling in 2010 for 170-185k.
The house is a good size, layout and location however currently has no central heating or double glazing. It needs rewiring and a new kitchen. On top of this the whole place needs reflooring (carpeting and tiles) and new paper and repainting everywhere.

Is it OK to bring a builder along with you for a viewing with an EA? Should I expect this to be a free quote or pay for it? How much should I deduct from my offer for contingency and for the effort?

We are first time buyers with our mortgage agreed and a solicitor lined up.

Thanks in advance!

bluewater

Most definitely it's OK - maybe more than one. I think the cost of the work you describe will exceed your budget by a long way. The house is overpriced if your comparables are correct.

jockosjungle

The people may have valued it correctly don't forget, if its cheaper than others and may not be interested in doing a massive deal.

Why not just buy a similar property in better condition? Rather than trying to beat a no doubt unwilling seller, has it been on the market long? If its new on the market don't expect them to jump at your offer

R

jozbo

dont think it is too overpriced as have seen two houses in similar condition - one that was the same but had a bad damp problem but CH (plus no convertible loft) on market at 160 and another that had an extra bedroom and bigger garden for 190..
if similar houses are selling at 170 they must be the ones requiring work... though if its as much as this i dont know
isn't installing CH in the region of 3-5k? I havent seen many places with full double glazing so that would be a luxury
this house has been on the market a month and had a sale fall through as buyer couldnt arrange a mortgage
we like the location of this one and i've seen about 20 similar houses in the area lately and almost all have been totally 'done' and around 180 mark, so this one is tempting as we want to put a stamp on something

CH = 3-5k
partial / full DG = 2-4k
rewiring and updating electrics = 1-2k
ikea kitchen = 2-3k
carpets = 1k
repapering and painting = couple of hundred for materals, we can do this ourselves
total = max 15k + 20 percent = £18k

in perfect condition i'd think this house is worth 180
so max offer would be 162k

think this is fair?

jozbo

jockosjungle wrote: »

The people may have valued it correctly don't forget, if its cheaper than others and may not be interested in doing a massive deal.

Why not just buy a similar property in better condition? Rather than trying to beat a no doubt unwilling seller, has it been on the market long? If its new on the market don't expect them to jump at your offer

R

we'll give it a try but aren't too attached. wont expect them to jump at the offer. it's a probate property so assume there's not a great pressure on them to sell quickly. zoopla values it at 157 in current condition (sizes accurate etc)

CLAPTON

how big is the place?

electric 1-2 seems on the low side
carpets for 1k would do about 2 fair sized rooms
2-3k for a kitchen ... is that include fitting?


you could probably get better idea of the price of DG, kitchen by going into a suitable shop and asking based on rough measurement and carpets are prety easy to price up yourself

jozbo

CLAPTON wrote: »

how big is the place?

electric 1-2 seems on the low side
carpets for 1k would do about 2 fair sized rooms
2-3k for a kitchen ... is that include fitting?


you could probably get better idea of the price of DG, kitchen by going into a suitable shop and asking based on rough measurement and carpets are prety easy to price up yourself

it's a 2bed/2 recep. think we'd only carpet the 2 dbl bedrooms so that sounds right - that includes the fitting though right? (i plucked the figures out of thin air tbh!)

for electrics the place needs modernising, obv it has electrics but they haven't been checked in years and thought may need rewiring.

2-3k for an ikea kitchen, we can fit the units ourselves and ikea charge a small fee for the connecting of appliances as i understand it (they send someone with the delivery of cabinets etc)

essentially what we need is a one-stop-shop to quote for all these things but doesn't exist! shame

mynameisdave

CArpet fitting in our area is about £3psqm so £100 for fitting into 2 4x4m rooms.

tyllwyd

Carpet - I always get caught out, but remember that the carpet comes in 3m or 4m rolls, so depending on the shape of the room you might have to buy a lot more carpet than you think just by calculating the area of the room. And remember underlay - that bumps up the price a fair bit. I'd agree that £500 for a double bedroom is the right ball park.

And from my experience £3-5K for installing central heating from scratch is the right kind of a price.

jozbo

UPDATE:
Took local builder with me for a 2nd viewing, was a great help.
Quotes for the (extensive) work came in at £20k. I added furniture and other costs and added contingency of 20%.
Think the property would be worth £185k after all these improvements. Anyway we intend to be there 10yrs plus.

So on the basis of that, we initially offered 154k (AP 168K) Refused the same day
Then put in best and final, 157k. EA said it was going to be refused. I said fine, we'll get something else.

Finding it's easier to hold your nerve when you're looking at a property that needs work. As in a way, you can prevent yourself falling in love with it as it's all potential.
Cant see anyone offering more - at least nobody who's serious. Fingers crossed!

jockosjungle

It being in probate can sometimes help, if its say five people reaping the proceeds of the estate then they are more likely to agree as personally they're only losing a couple of thousand each, whereas a single seller would be losing £10k

R