Need opinion on this property and price

Tyler119

Hi everyone,

I am new to this forum, however it seems fantastic. Me and my partner have been looking to buy our first property. We are renting and are lucky enough to be able to pay cash. The properties we are viewing are all in the same area. We love one in particular. Its strathmore avenue, Walney Island, number 64, LA14 3DH
(cant post link as new user)

It has been empty for some time and seems to have nothing done to it since it was built, probably in the 50's by the design of it. It has old school tiled ceilings too and has no central heating. The guttering is damaged as their was water spaying from it, the shed outside is rotten and the gardens needs an overhaul. The kitchen only had a couple of very old units, a crack in the ceiling, also a crack in the wall of the bedroom above it. One of the power sockets had a melted connector so I imagine the electrics will need to be re-done.

It is on the market for 120k. My issue is it is hugely overpriced! There are identical designed houses in the same area on the market for the same prices, or up to 10k less than this one.

We are not nervous about the amount of work needed as it is a blank canvas in our minds. However we think a reasonable maximum price would be around the 80k mark. We based this on the fact that the house is basically an empty shell in need of repair and also needs bringing up to date to make it habitual. That coupled with the price of similar properties.

Does anyone think this is unreasonable? We put in a first low offer of 65k with a full list of why it was low and detailed the works needed on the house.

Your help would be appreciated.

jbainbridge

http://www.rightmove.co.uk/property-for-sale/property-37837895.html

mysterywoman10

Its a difficult call without knowing the area, very few properties have come up for sale on the road in the last few years. Those that have didn't seem to have such a reasonable sized garden and parking.

It is a 1930's property is says this in the first line of the details! And it has some nice original features in this regard. The bathroom looks reasonably ok and fairly modern certainly liveable in.

My gut feeling is this may be a sale to pay for care costs, so they may not be in a massive rush to sell and could be holding out for the best price.

Yes it needs central heating, probably re-wiring but the other things you mention are not that significant, the roof it's hard to tell from the photos.

At the end of the day any property is only worth what someone is willing to pay for it. I think 65k is far too low an offer to be realistic given other sold prices on the road, but who knows?

taxiphil

Sorry, but I don't think for one moment they'll go below £100. My guess is they're holding out for something between £100-110.

To give you a ballpark idea, this one on the same road (also 3 bedrooms, no central heating, needs modernising) went for £102 in July 2012.

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=23077455&sale=47653394&country=england

A builder/developer would happily pay more than your maximum of £80k, and be able to rewire, install central heating and do a general refurb, and then sell it on for a decent profit.

mysterywoman10 wrote: »

My gut feeling is this may be a sale to pay for care costs, so they may not be in a massive rush to sell and could be holding out for the best price.

Agreed.

In case the OP isn't aware, it went on the market in May 2012 for £135 and was then reduced to £130 in Oct 2012. See: http://www.home.co.uk/search/price_info.htm?property=3003065942

They're certainly in no rush.

taxiphil

Tyler119 wrote: »

seems to have nothing done to it since it was built, probably in the 50's by the design of it.

I can promise you it's had lots done to it since the 1950s! That bathroom, for example, looks quite modern and while the choice of wall tiles is questionable, some people wouldn't even feel a need to replace it.

Just because the existing decor isn't very pleasing to the eye, it doesn't mean the house hasn't been well cared for and maintained over the last 60 years.

The odd crack in the ceiling (assuming they're not too large), a leaking gutter and a rotten timber shed aren't really going to have much effect on the price.

becominganobsessivesaver

I usually agree with the 'what have you got to lose with a silly offer' brigade, but unfortunately this time I think an offer of almost 50% below asking price would make the agents question how serious you really were, and that may not help with other properties you want to offer on/view. Essentially you are getting a blank canvas, but the big jobs are the kitchen and heating. For good standard of both you're looking 8 to 10k in total. I

Tyler119

Thanks for all your replies.

To be honest we knew the opening offer was unrealistic , however we are in the mind that you can never start too low; especially as this house has had so little interest. The EA knows we are serious about buying as we have more viewings tomorrow with them.

The bathroom does look modern, however the picture is quite deceiving, all the inside ones are really. The house needs ripped back to bare everything. As I said every room in the house will have to have the ceilings replaced as they have these strange square tiles on them. So taxiphil its not just small things, that and an entire central heating system needs to be installed.

The island this property is on is fairly small and so the house prices are fairly consistent for this type of property. When properties in the same area are going for less and basically the same size, and need little or nothing done to them then it seems ludicrous that this vendor is asking for so much. Not looking to rip anyone off, but we though something in the region of 80k to 90k would be a fair offer.

Any thoughts on what we would pay rather than our original offer would be appreciated.

Cheers again for the comments so far, gives me food for thought.

Steven

Ivana_Tinkle

Agree with taxiphil. Unless the market has plummeted in your area, or there's something wrong with your one that isn't visible from the photos, I can't see why it would be worth any less than the one sold in July 2012. It looks to be about as exact a comparible as you're ever likely to find.

Tyler119

Ivana Tinkle,

To be honest I'm not paying a great deal of attention to what was sold before as this is now. As I've said the photos do not do it justice. There are comparable properties in this area that are on the market for less money and my argument is, why should I pay more for one that I am going to have to spend thousands of pounds doing up.

Its possible that we would go towards the high end of 80k, but after that I question value for money against investment. In our minds, compared to other properties on the market, cannot see how they will get near the asking price.

Thanks again for your comment though.

Steven

SUESMITH_2

i'm all for a cheeky offer but that is just way too low.

our house was a derelict shell when we bought it - rotten floors and windows, damp course breached, water running down the walls inside and dangerous electrics to name a few bits. that house isn't in the same league.

you could live in that quite easily. the bathroom is reasonably modern and it looks like an old person had had it. the garden in the pics is beautifully kept

a rotten shed and ceiling tiles doesn't make it worth half its value - i think you need to do a bit more research.

can you give us a right move link for the comparable ones that are much cheaper?

Tyler119

mysterywoman10 wrote: »

Its a difficult call without knowing the area, very few properties have come up for sale on the road in the last few years. Those that have didn't seem to have such a reasonable sized garden and parking.

It is a 1930's property is says this in the first line of the details! And it has some nice original features in this regard. The bathroom looks reasonably ok and fairly modern certainly liveable in.

My gut feeling is this may be a sale to pay for care costs, so they may not be in a massive rush to sell and could be holding out for the best price.

Yes it needs central heating, probably re-wiring but the other things you mention are not that significant, the roof it's hard to tell from the photos.

At the end of the day any property is only worth what someone is willing to pay for it. I think 65k is far too low an offer to be realistic given other sold prices on the road, but who knows?

Actually it has a 1930's style entrance hall, it wasn't built that early. To be honest, having to replace all the ceilings, install a full central heating system, full kitchen and re do the garden isn't going to cost a few hundred pounds, it'll cost thousands of pounds. The bathroom may be livable, but may be a bit small for all three of us. The rest of the hose is not livable in at the moment.

As I said, our first offer was low, and we knew it. However to go much above 80 to 90k and then have to invest money in in may not provide value for money.

Cheers