First time buyer jitters or something more?

likkle_monkey

Hi everyone!

Newbie here so please be gentle with me!

I've seen a property that's on the market for £185k, alot lower than the average price in that street which is around £220k, but still a bit out of my budget.

I had my second viewing yesterday, and although I think it's a good buy, it needs at least £10k spent on it. New carpets, new kitchen, replastering, new front and back door. Incredibly, the location of the orginal door to the kitchen has simply been closed and boarded up rather than being filled in properly. The garden needs some extensive work too. £10k I do not have! And which I would have to build into the mortgage repayments (have spoken to mortgage advisor about this already but still awaiting confirmation that I could afford this option!)

I reckon I could get the price reduced by a fair amount because of this work needing to be done, as well as the fact that the vendor is quite desperate to move plus I'm a first time buyer and have a mortgage in principal as well as 15% deposit.

Am I having first buyers jitters?! Am I being blinded by my fear?! Is it worth the risk!? I could definitely see the house making a profit if I refurbished it etc. I would obviously have to get a survey done too. I don't think I'd get a 3 bed house in this area for anything less than £200k which is simply out of my budget.

Does anyone have any advice for me please?

Thanks alot!
Sarah

wastedtalent

By the looks of your initial post, maybe the reduction due to work that needs doing has already been factored in the asking price?

FireWyrm

Houses shouldnt be for profit purposes...that train has well and truly left the station. The question is, can you sensibly afford it? If the answer is yes, and you like it, why not go for it? Does the area do it for you? Do you think it would be a nice place to spend the next few years at least? All good questions.

You should also think about the fact that although house prices are depressed, how much lower do you think they are going to go? Is this your one chance to own such a house in this location? Will you ever be in this position again, with this much leverage in a depressed market?

Hammyman

If the kitchen is functional you can live with it. Doors are cheap if you replace them yourself if they're not uPVC ones. The garden costs the cost of hiring a rotavator to turn it all over until you've got money and then you can work on it.

I would say that if the average price is £35k higher than its on the market for then it has been priced to take this into account however in a slow market its worth making a £165k to £170k first offer.

likkle_monkey

Hi wastedtalent

Thanks for your reply. Yes, you're probably right, but isn't there's room to negotiate on any property? Why should this one be any different?

GAH

At the end of the day, if you like the property, just make an offer of what you think the property is worth to you, the worst that will happen is that you will get a NO from the vendor.

What you don't want to do is overpay in this market, but on the other hand as well, I would think too much about making a profit. In the longer term yes maybe when you have paid down the mortgage, in the shorter term maybe more difficult.

wastedtalent

likkle_monkey wrote: »

Hi wastedtalent

Thanks for your reply. Yes, you're probably right, but isn't there's room to negotiate on any property? Why should this one be any different?

Oh there's always room, would be insane not to push hard. I was just pointing out you might not get as much off as you're post indicated you might think, if the asking price has already factored in the money that needs spending.

I'm a FTB too, and fully aware that when I buy it'll be a few years before I have the house I buy as I want it, the main issues for me would be are the kitchen and bathroom usable.

likkle_monkey

Hi firewrym

Thanks for your reply. Houses in this street go for alot more than £185k so I wouldn't probably be in a position to buy in this area for a long time! It's a nice area, close to town centre and schools and I could definitely see myself living there, but just not in the state it's in at the moment! Hopefully my mortgage advisor will get back to me about adding in £10k into the repayments.

likkle_monkey

Hi Hammyman

Thanks for your reply. The initial offer I was thinking would be around £165k - £170k, so glad to see you agree!

likkle_monkey

Hi GAH

Thanks for your reply. Yes, you're right, I know I shouldn't be thinking too much about resale at this moment in time! It could be a fantastic house, especially when I've finished with redecorating it!!

likkle_monkey

Hi again wastedtalent

Yes you're right. This isn't my dream, final home, but it's definitely a start on the property ladder. The bathroom is lovely, just needs finishing painting. The kitchen is HORRID! Useable but definitely needs replacing.

I'm going to call the estate agent now and see if I can get a builder / decorator friend round to give me an estimate - assume this is a wise move before putting in an offer?!