Is this a big issue?

suzmis84

Hi,

I have found a great house that I really like and am in a good position to buy it as the place is now vacant, hence sellers are keen to sell, and I am a FTB. However, there is no real scope to add value to the house which is concerning me. Its in a great location, looks nice, and was only built 15 years ago, but there is no space to extend or no real need of an uplift (besides a new modern kitchen and bathroom).

Would this put you off buying? I am scared of paying a premium, however nothing has sold on that road since 2006 - which is a good sign.

Any thoughts appreciated.

BitterAndTwisted

Is it necessary to buy a property "with scope to add value"? I would have thought that there would be a multitude of more important things to consider

taxsaver

You're buying a home not an investment project!

Doozergirl

It depends on whether that is what you want.

If you want to add value, there's little point in buying a house that you can't do anything to.
If you're not bothered about adding value then you may as well leave those houses to people that do.

So no, it's not a big issue. There's no law that says you have to add value and space. People need smaller houses too!

hazyjo

If it's somewhere that will do you for the long term, or somewhere that would suit you if your circumstances changed (presume you're buying alone... what if you met someone and they moved in? Kids?), I'd not worry. You're buying it to be a home, not a development. You can only lose money on it if you have to sell. Just be careful you're not overpaying in the first place!

Do you have a large deposit (percentage-wise)?

Jx

suzmis84

Thanks for the reply. I am actually buying with my fiancee and its near transport links and schools, so no problem if our circumstances change. We have a 25% deposit which is pretty much all our savings, so in a way its not too bad that there is not much work required.

I am not sure how to position my initial offer. The price was originally £550K and then got reduced to £525K. The EA has told me they are keen to sell as it is vacant and looking for a buyer in my position. I just dont want to pay a premium and not other houses on that road to compare to as nothing has sold for 5 years. How would you assess any premium or what is a reasonable offer?

GAH

Work out how much the property is to yourself, and have a price in mind that will be your final offer, how you negotiate up to the point depends on the vendors.

You should be able to pick it up for below £500,000 to avoid the extra stamp duty though.

You can do all the research of what other properties are sold for, but its what the property is worth to you that matters.

BornAtTheRightTime

It is deliberately priced at £525k in order to sell at £500k as this represents the minimum 5%-ish discount that will be expected.

Has it been on the market long enough for the vendors reluctantly to accept something under £500k? How does it compare price-wise to similar sized proerties in the general location that are SSTC?

Are you using Property Bee? If not, post a Rightmove link and we can tell you how long it has been up for sale and its price history.

RenovationMan

At £500,000 your stamp duty will be £15k. At £500,001 your stamp duty will be £20k. You'll be paying an extra £5k in stamp duty if the price is over £500k so I would aim to hit that figure at least in your negotiations.

suzmis84

It has been on the market since March and they are very keen to sell given it is vacant. Therefore, I think we can negotiate below £500K - the question is how much?

Other houses in the area go for more than £500K....