advice on offer - informal tender

fusar

Hello!

I was wanting some advice if possible. I have seen a semi-detached cottage that I like in a nice little village where I live. It has extensive garden both back and at the side. It does need a considerable amount of work doing to it, such as an extension to change it from a one bedroom to a 2/3 bedroom, a bathroom fitted (as there is only a toilet outside at the moment), new kitchen, new floor joists, plastering, new floors etc...

It is up for sale by informal tender. Other 2 bed semi-detached properties in the area are being sold in modernised condition for around £125-£135. I have asked the estate agent how much they would like for this cottage and they said that they would not be surprised if they get offers for 100k, so have set the guide price at this. I could ot afford to pay this amount with the amount of work needed, but not sure how much to offer. Apparently the property can be mortgaged. However, I am a cash buyer. Has anyone had any experience with informal tenders? Would an offer of 75k be too cheeky?

Any help would be fantastic!
Many thanks
fusar

Doozergirl

I wouldn't be trying much more if it were an investment property, especially if you're building an extension. TBH, I'd forget the extension as at that low a price, I cen't see you making back the cost of the extension.

The important thing to do when you put in your informal tender is to be as comprehensive as possible. Include whether it is subject to survey (your low bid would be taken more seriously if it weren't, tbh, but you don't want to take risks) and you need to label exactly what you think needs doing.

You should also include the fact that you will work to the vendor's timeline (can complete within x weeks if necessary) and are a cash buyer. Give your bank magaer's telephone number to confirm available funds (inform you bank manager you are doing this too!) and also include your solicitors details.

You need to look slick to make a low offer work.

EDIT: I'd query whether it could be mortgaged with an outdoor loo. If it's that outdated then it goes without saying that it needs rewiring, damp-proofing and probably a new roof too. If they haven't bothered with decent sanitation, you can bet they've bothered with nothing.

fusar

Many thanks for your reply - such a useful piece of information. I will definitely take your points on board! There does seem quite a lot of work to do - I went to visit the property over the weekend, and it is in a bit of a state, but the house next door is identical but has been fully modernised with an extension and it looks lovely! I think it is quite a popular property though (sigh!) as I have requested the keys on four occasions and each time they have been out on a viewing!