Would you............

bigc2910

Buy a Repo house that you were gazumped on by cash buyer developer three months ago, bought for £143,500 with refurb spend of approx £15000,for an asking price of £185,000?

EA knows it ticked all our boxes as we upped our offer to £150,000(in Jan) but contracts had exchanged,its larger than average,right location,and nothing has come close to it in all that I have viewed since.

Or should we sit tight and leave it as 'the one that got away'. We sold last year,are ready to go as on rolling contract renting,finances in place and wanted to take advantage of our position.

What would be a reasonable return for the developer,as we appreciate that the refurb has been completed without all the stresses that can bring and are prepared to compensate accordingly. Any developers prepared to say what they would expect for a three month investment would be a great help!

Just wanted peoples opinions on wether to have another go at it, or leave well alone, as EA knew we were still looking and maybe overvalued accordingly. (identical house opposite they marketed for 18 months at £190,000 12 months ago didnt sell and was taken off)

Thanks in advance

sismith42

bigc2910 wrote: »

What would be a reasonable return for the developer,as we appreciate that the refurb has been completed without all the stresses that can bring and are prepared to compensate accordingly. Any developers prepared to say what they would expect for a three month investment would be a great help!

The developer's return should have NOTHING to do with what you're able and willing to pay for your next home. Don't forget, these are the people who "stole" it from you three months ago... if they make a loss in doing it up, that's their problem.

WelshNic

How do you know how much they spent on it?

satchmeister

bigc2910 wrote: »

Buy a Repo house that you were gazumped on by cash buyer developer three months ago, bought for £143,500 with refurb spend of approx £15000,for an asking price of £185,000?

EA knows it ticked all our boxes as we upped our offer to £150,000(in Jan) but contracts had exchanged,its larger than average,right location,and nothing has come close to it in all that I have viewed since.

Or should we sit tight and leave it as 'the one that got away'. We sold last year,are ready to go as on rolling contract renting,finances in place and wanted to take advantage of our position.

What would be a reasonable return for the developer,as we appreciate that the refurb has been completed without all the stresses that can bring and are prepared to compensate accordingly. Any developers prepared to say what they would expect for a three month investment would be a great help!

Just wanted peoples opinions on wether to have another go at it, or leave well alone, as EA knew we were still looking and maybe overvalued accordingly. (identical house opposite they marketed for 18 months at £190,000 12 months ago didnt sell and was taken off)

Thanks in advance

Where do you get the £15k from; £400 white bathroom suite from B&Q, £1500 for an IKEA kitchen and 3 large cans of magnolia ... and £1000 for beige nylon carpet from Carpet Right or similar....

david29dpo

As said above, totally irrelevant what the developer has done,spent. You pay,offer what you think its worth now.

BitterAndTwisted

If the identical house opposite really is identical then £185K is asking too much. Presumably, if you wanted to pay £185k you would have offered it to the owners of the house opposite by now.

madmish00

If you were willing to pay £150k when it needed the work and the builder has apparently spent £15k I would offer £165k. I certainly wouldn't be going up anywhere near £185k.

Jowo_2

madmish00 wrote: »

If you were willing to pay £150k when it needed the work and the builder has apparently spent £15k I would offer £165k. I certainly wouldn't be going up anywhere near £185k.

I never understand posts that regard properties refurbished by property developers who resent or choose to ignore the profit element of it.

I've seen a number here that are outraged that a company seeks out low priced properties, try to minimise their expenses and then sell it for the maximum they can. To me, it sounds like the every day operation of basic capitalism.

They aren't a charity and they do up properties for a profit, therefore there's no way a developer will sell the property for tiny or low profit unless they are distressed in some way.

So while the OP has to think what the property is worth to them, how it sits with similar properties of a similar standard, how much they can negotiate down from the asking price, it is completely pointless to offer a sum to a business for a property that only just meets the labour and refurb costs, isn't it?

For example, there's a flat in my block where property developers bought it for 77.5k (and it was already in fairly good nick as it had been repossessed from a company that refurbished it and went bust). It's clear that they've redecorated it, landscaped the garden and undertaken some damp proofing. Perhaps they did other work too, like installed new plumbing features. At a rough guess, 5 to 10k worth of work. And I expect them to put it on the market for at least 120k - because that's what decent standard flats go for around here.

CloudCuckooLand

There are great re-developments and rubbish re-developments. I'd happily pay for the hassle-free element of the first, and would not touch with a bargepole the latter.

i.e. a bungalow giving fancy granite flooring, but they left in the 1960's wardrobe and room-dividing doors, plus a granite hearth was put it, but they left the 1960s tiling...yuk. Plus poor quality finish all round...

They had to drop £25k to eventually sell that botched job.


Whether the OPs example fits the former or latter, only they can satisfy themselves about.

£185k is only the asking price, so it would be foolish to go straight in at that. Some developers prefer quick turn around for a modest profit, to sitting on stock waiting for a large profit.

If it really is the "only" house around, is doesn't hurt to make a sensible, lowish offer and work up to what you are comfortable paying.

sonastin

Forget the history of being gazumped and developers profit and all that malarkey. You've seen a house that you like and you want to buy it. If it didn't have the backstory, what would you be prepared to pay for it? Bearing in mind that you like this more than anything else you've seen over the last few months.

Oh and be aware that for some reason, mortgage companies like the vendors to have owned the property for more than 6 months before they'll lend against it. So if you're going for a mortgage on this one, a quick turnaround might work against you. The developers will have this issue with anyone who wants to buy with a mortgage though...