house needs modernisation

mattdragon2

I looked at a house I am interested in buying.

It needs a new kitchen.
Maybe a new heating system since it is a back boiler (not sure, do I?).
The rooms all look like a house from the 80's (the old woman who lived there passed away, family just want to get rid of it).
The garden is quite messy.
I asked if there needs any rewiring, the agent said, it would be best to check it out.
Doors are old, wallpaper partly stripped.
Needs new carpets.
Bathroom is old so probably needs doing up too.

The house is on offer for 180k, its been on for 2 months, no sale.

Before I saw the house I was going to offer 161k but after seeing it needs a new kitchen and heating system, I was thinking more like 150k - 16% off asking price.

There is a house been on sale for 6 months, exact same for 200k but hasn't sold or had a price reduction.

Does anyone think that 150k is too high or too low? I am quite confused on what to offer.

Old_Git

offer 150 and say it needs a lot of work

Garudi

Offer what you think it is worth, they either say yes, no or negotiate. It's a buyers market, so try your luck.

ukcarper

To be quite honest it is impossible to give answer, the house could have been priced taking into account the work. You need to find out what similar houses have sold for and work out what you think the house would is . If the house was built in the 80s I would imagine the wiring would be ok unless somebody has played with it.

Mind you as Garudi offer what you thinks it’s worth.

firsttimetom

16% below asking price is a good offer considering that houses are currently selling for 32% below the asking price*

I would explain that for to the estate agent when you put in an offer and advise them that they may not get such a good offer.

* Source: Rightmove Asking price index (£239,672) vs Land Registry Sold Prices Index (£162,347)

Nearly_Old

My son and DIL are just completing their first house purchase - the final missives (it's in Scotland) have just been concluded and the house needs complete modernisation. It is being sold by the executors of a will and the history is:

House first advertised for £190k (Home Report value £200k).
Then after some months dropped to offers over £140k (refreshed HR £150k).
Taking into account the work highlighted in the HR (quotes came in at £15k) they offered £120k to leave themselves a safety margin.
The offer was rejected but a few weeks later the vendor's solicitor called to say that £120k might be accepted.
In the meantime they had been back to the house a couple of times with other builders and found a bit more work (about £7k in value) that really needed doing so in went a revised offer of £100k - rejected but a revised offer of £103k was accepted two days later.

So I would recommend that you offer what you think it is worth taking into account a) the work required; and b) a reasonable risk allowance for those unforeseen things that always crop up.

Since posting the above on a similar topic we've found that the kitchen floor needs to be completely replaced. So it's a good job that they allowed a very generous risk factor and Dad is going to be very busy during November :rotfl: On the up side two further surveys of the roof have concluded that there is less immediate work required to the roof than shown in the HR so they've saved a few £k's there.

ukcarper

firsttimetom wrote: »

16% below asking price is a good offer considering that houses are currently selling for 32% below the asking price*

I would explain that for to the estate agent when you put in an offer and advise them that they may not get such a good offer.

* Source: Rightmove Asking price index (£239,672) vs Land Registry Sold Prices Index (£162,347)

Houses are not currently selling at 32% below asking price.

I know someone who has just sold a house that needed all the work mentioned and they got 98% of asking price as it was priced correctly in the first place.

suzyp1982

mattdragon2 wrote: »

I looked at a house I am interested in buying.

It needs a new kitchen.
Maybe a new heating system since it is a back boiler (not sure, do I?).
The rooms all look like a house from the 80's (the old woman who lived there passed away, family just want to get rid of it).
The garden is quite messy.
I asked if there needs any rewiring, the agent said, it would be best to check it out.
Doors are old, wallpaper partly stripped.
Needs new carpets.
Bathroom is old so probably needs doing up too.

The house is on offer for 180k, its been on for 2 months, no sale.

Before I saw the house I was going to offer 161k but after seeing it needs a new kitchen and heating system, I was thinking more like 150k - 16% off asking price.

There is a house been on sale for 6 months, exact same for 200k but hasn't sold or had a price reduction.

Does anyone think that 150k is too high or too low? I am quite confused on what to offer.

A back boiler is perfectly serviceable, however not very economical. As long as it has been well maintained it should be fine.
Again wiring should be fine, you'll need to check if it has the earth wire though.

To me, it sounds like they have overpriced slightly compared to the other house on for £200k, i doubt very much you will spend £20k on a kitchen/bathroom/paint/flooring unless you are going for the best.

If im honest i would be peeved if someone offered me £30k less than the asking price. But then i have not seen it.

dimbo61

Offer £150K you can always offer more ( not less!!) tell them it needs £25/30K to update

sugarwalsh

Our house was in a similar state to yours. It was initially on the markey at £170000, reduced to £150000. We offered £134000 and it was accepted. We have rewired (It needed doing and made sense to do it whilst we could), replaced a back boiler, kitchen, bathroom, stripped evey wall, built a patio and numerous other things. OH in the trade so we have managed to do a lot for fee/low cost, but in all I would say if you were to pay someone else budget for at least £20,000. So, take that into account when you offer. As they say above, you can but offer.

Best of luck,
Megan