Too Cheeky?!

what_to_do?_2-2

Hi All,

Hoping for some advice really............

We went to view a property marketed at offers over £79,995. The EA advised the home report valued the property at £90,000 - are these reliable?

Anyway, the property needs a lot of renovation..... first estimate about £15-20K of work. The EA explained that it was an older gentleman that had lived in the property for a number of years, at first it was going to be sold for care home fees but, unfortunately, he died so his son and daughter are selling.

I am considering putting in an offer but it would be no where near the asking price for the property due to the level of renovation required.

I've read here that an offer 10% under asking price is, generally, acceptable. Is it too cheeky to reduce it more? I'm thinking of putting an offer of £57,500 in as a starter point but not looking to pay any more than £65,000....this is almost 40% under valuation! I know that any offer can be submitted but would this offer even be passed by the EA as it's so much under?

What do you think?

Thanks

hcb42

if it were my house i wouldnt entertain that kind of offer.

DVardysShadow

Well done for setting a top price. When the work is done, will it be worth 85 to 90? because I think that if you say it is 15 to 20 of work, you should budget 25. So 57500 looks the right place to start offering. I assume you are in Scotland, so no comment on the home report. The EA should pass any offer on, unless it does not meet criteria set by the vendor.

what_to_do?_2-2

hbc42 - but it's not their house either iyswim. They're just getting the cash which makes it slightly different...... Surely they can see the work required that I can and perhaps understand?

DSVardysShadow - I am in Scotland, but I don't know just how accurate these home reports are or how useful. I know that at the very peak of the high property prices a friend paid around £120,000 for a similar property so I imagine now it would be worth £85-100K depending on the finish. I'd not be looking to move again so it wouldn't interest me from a future value point of view. I can see potential in the property and would make it a forever home but still don't want to lose sight of price and pay over the odds.

MCC100 - no it's not. Why do you ask?

mcc100

what_to_do? wrote: »

MCC100 - no it's not. Why do you ask?

I deleted my post as soon as I realised the property is in Scotland, where I understand that it is common for houses to be advertised as 'offers over' ......

In England it is rarely used, but the estate agent I mentioned are renowned for extremely low valuations but with 'offers over'.

hcb42

what_to_do? wrote: »

hbc42 - but it's not their house either iyswim. They're just getting the cash which makes it slightly different...... Surely they can see the work required that I can and perhaps understand?

?

when i sold my parents family home i didnt quite see it like that. I priced it under the norm because of the work, not to have it knocked down again as it needs work ...(and sold it)

Werdnal

What are your plus points as a potential buyer?

Have you the finance in place?
Are you in a chain?
Can you move with the sale quickly, and with no hiccups along the way?

If they are selling because their father has passed away, they may be keen to get it all done and dusted quickly. If you can answer yes to all 3 above, that put you in a good bargaining position. Even Yes to 2 might swing it!

Put the offer on the table, with the qualifying points regarding the work required and see what happens - you can always revise it upwards, but you cannot come down ... that is unless you are getting a full survey? We offered £55K on our current home which was on market for £60K (1993). Survey was as thick as a telephone directory, so we told vendor it was £45K or we were walking ...

Cheeky, but you won't know until you try.

what_to_do?_2-2

Update.......

Phoned the EA for a copy of the Home Report this morning and they've advised the property now has a closing date. Thurs this week at 12:00pm!

I'm assuming that this means there have been lots of offers on the property. Would this be right?

A solicitor has to put the offer in writing by the stated time. Could anyone suggest an indicative charge for this?

I plan to put an offer in anyway, as you never know, but am prepared for not being successful. I think I'll put in an offer of the max I'd be prepared to pay. Is this wise?

Thanks

19lottie82

Sorry but I think you're dreaming here. I live in Scotland too and the seller has put the property @ an offers over price because that is exactly what they want, an offer OVER £75k. The home report shows the property is valued at 90k, and that takes in to consideration the work that needs done. If this was a vastly over optimistic fixed price property then you might have a chance, but it isn't.

ferox666

19lottie82 wrote: »

Sorry but I think you're dreaming here. I live in Scotland too and the seller has put the property @ an offers over price because that is exactly what they want, an offer OVER £75k. The home report shows the property is valued at 90k, and that takes in to consideration the work that needs done. If this was a vastly over optimistic fixed price property then you might have a chance, but it isn't.

Nonsense. Most of the HomeReport values I'm seeing are based on peak (2007) prices which have fallen 25%-40% so far and have no signs of improving with the state of economy (I predict a steady, further decline in prices over next 3-5 years).

I know of someone in Scotland who paid £110k for flat in late 2006 and one in the same block (same condition) is now on at £70k and struggling to sell despite HomeReport "value" much much higher...

19lottie82

Home Reports are based on 2006 prices? I don't think so. I bet a load of sellers wished they were tho!
Again, the clue is in the type of asking price, offers OVER. I have lived in Scotland all of my life and having kept a keen eye on the property Market for the last five years I have never heard of anyone accepting less than an O/O price, never the less almost 20% less!