Would this offer be satisfactory?

cramg

4 bed detached property is on the market at £295K.
No upward chain - we think the person has gone into care or died but estate agent will not give anything away whatsoever.

House was built mid 80's and has original decor and features in the entire house.
The whole interior (every room) would need completely renovating, same goes for the rear garden. We think circa £30K/£35K to renovate the entire house.
(it cost us £25K to do our current 3 bed detached)

Planning on offering £240K
This seem about right, to low, to high?


Thanks

ess0two

Whats stuff selling for locally?the flipside would you accept 55k less in that position?

casper_g

The question in the OP cannot be answered. Does the asking price already reflect the need for modernisation? The question is also a pointless one. There are no fair and unfair offers, only offers that are or are not accepted by the vendor.

Ask yourself how much the house would be worth if it were in perfect condition. Then ask how much it would cost to modernise the house to your taste, and subtract that cost from the number you first thought of. Then ask yourself how much inconvenience and time you would have to invest in getting the work done yourself, and include this in the calculation too to determine what the house is worth to you in its current state. Compare this with the asking price. If the house is worth less to you than the asking price, offer this much (or a bit less, to give you room to negotiate). If the house is worth more to you than the asking price, then your offer should be based on the asking price, the rarity value of this type of house in the area you want, and the likely level of competition from other purchasers, amongst other factors.

hazyjo

As above. Can't just pluck figures out of the sky so would need to know what similar properties have sold for.

If the house obviously needs all that doing, it should be priced accordingly. You can't just expect to knock off the price of doing it up!

Saying that, it might well be dragged down to the £250k level if there's not enough interest at its current price.

If in its current state it is worth nearer £300k, I think £240k would be an extremely low offer!

Jx

cramg

This is where i really could do with the agent telling me more about the vendor but i do not want to sound overly keen.
If the owner has died and family or trust are selling the house, then that puts me in a good position i guess.
I know if my parents died and i was selling their house at 295K and someone offered in the region of 250K, i'd snap the offer up and get the cash in my bank asap.
Also, if the vendor has gone into care, surely they will want if not need the cash sooner rather than later.
Lots to think about...........

somethingcorporate

Provide a rightmove link and perhaps we can help a bit more....

hazyjo

From my experience, if it's family or whoever selling a house as part of someone's estate, they always hold out for the best price and don't bite anyone's hand off!

The only time I paid full price for a house was when the previous owner had died and their family got their hands on it! Mind you, they had just reduced the price that week, so I suppose they were digging their heels in, and they did have to pay for damp work to be done after I'd offered...

Jx

ess0two

cramg wrote: »

This is where i really could do with the agent telling me more about the vendor but i do not want to sound overly keen.
If the owner has died and family or trust are selling the house, then that puts me in a good position i guess.
I know if my parents died and i was selling their house at 295K and someone offered in the region of 250K, i'd snap the offer up and get the cash in my bank asap.
Also, if the vendor has gone into care, surely they will want if not need the cash sooner rather than later.
Lots to think about...........

All depends on how many are taking a share from proceeds.

cramg

Average sale price within the area (bewteen 4 adjoining closes) is anything from £250K to £290K for 4 bed detached houses.
A similar size 4 bed detached was marketed feb 2011 at 275K and just sold for 255K, also a 5 bed detatched within the area is priced at 290K which has v good finish to interior but been on market since dec 2010.

somethingcorporate

The stamp duty ramps up considerably over £250k threshold so keep this in mind. £295k sounds very high if close-by 5 beds are not selling for less in the area.

You may have unrealistic sellers on your hands so any 'reasonable' offer may be rejected out of hand.

cramg

Thanks for the info people, it all helps...