Very low initial offer... Should I be worried about insulting?

FirstTimeBuyer88_2

Hi,

Looking for some advice here if anyone could help...

I've found a house I would like to buy but it needs a lot of work, all new central heating, rewiring, damp course, new kitchen, bathroom, and lots more on top. Property is currently up for £79950 and has been dropped by 5k about 3 weeks ago. I know that it's been up for sale since just before christmas as the owner has received no offers. The lady that lived there has unfortunately passed away and it has be inherited by her son. I know it was last purchased in 2001 for a price of £48200. Properties of a similar size in the area but without all this work are going for 90-110k

Now, I have a deposit of £46000 but will need to keep a good chunk of this for the work that needs doing. I would like to go in with a VERY low initial offer of £41000.


I know that there's no chance I will get it for this price but I would like to go in really low and obviously go up from there. But I am worried that it is too low and the agent will see me as a complete joker!!

Any advice at all please?

Thanks!

bclark

They say that there is no such thing as too low an offer, however I would consider you a joker and dismiss you out of hand.

clark24

Basically you want it for roughly half the asking price?

Well I'd be amazed if they accept but you never know how utterly desperate they are, but tbh I'd be amazed if they gave it a moments thought before they refuse it.

Running_Horse

It is nice to know there is life outside London, but you have no chance at that offer.

makeitstop

FirstTimeBuyer88 wrote: »

Hi,

Looking for some advice here if anyone could help...

I've found a house I would like to buy but it needs a lot of work, all new central heating, rewiring, damp course, new kitchen, bathroom, and lots more on top. Property is currently up for £79950 and has been dropped by 5k about 3 weeks ago. I know that it's been up for sale since just before christmas as the owner has received no offers. The lady that lived there has unfortunately passed away and it has be inherited by her son. I know it was last purchased in 2001 for a price of £48200. Properties of a similar size in the area but without all this work are going for 90-110k

Now, I have a deposit of £46000 but will need to keep a good chunk of this for the work that needs doing. I would like to go in with a VERY low initial offer of £41000.


I know that there's no chance I will get it for this price but I would like to go in really low and obviously go up from there. But I am worried that it is too low and the agent will see me as a complete joker!!

Any advice at all please?

Thanks!

I'd say you might have more luck at £65K, but maybe not so much well under that kind of figure. There's a low offer and there's simply taking the pi55..... which is what a £41K offer is in truth.

What you have listed there by the way of work required to get the house sorted, would amount to approx £10K (give or take a bit) What other "lots more on top" are we talking about.???

Clearly there has to be some profit in what you are considering, but you still have to be realistic on what people are willing to accept.

Of course, if the seller is desperate, you never know I guess.

marliepanda

Sounds like it's priced to take into account the work it needs

60k would be a low opening offer (25% off)

41k would make them think you have no clue about house buying

FirstTimeBuyer88_2

Thanks for all replies. I do not expect for them to accept my offer, I think I would be lucky to get the house for under 65k. The reason for such a low offer is to just see how cheap I can get it, obviously I can go up from there as much as I like but would be very unhappy if I went in with a more reasonable offer and it was accept straight away. The house also needs a new roof, asbestos garage removed and there is a problem with the kitchen floor, I believe that there is water damage from beneath as the tiles are sinking and cracking. There is also no bathroom upstairs and I would want to have at least an upstairs toilet installed. I have estimated, after having a builder, plumber and electrician look around the house with me, that for everything I will be looking at spending between 15-20k (that's with a contingency).

marliepanda

Remember, work the property 'NEEDS' will lower the value.

Work you 'WANT' (such as an upstairs toilet/bathroom, probably even removing the garage) don't impact on the price

clark24

How big is the contingency, because until it has been extremely thoroughly surveyed you could be looking at a whole lot more and end up throwing money at it for a long time.

How thoroughly did these people look at it? I'd be very nervous of buying it at any price if I wasn't in a building trade, or closely related to someone that was.

FirstTimeBuyer88_2

The contingency is 5k

I am hoping to put in a basic (cheap) kitchen and bathroom.

I know it needs a lot of work and requires a fair sum of money spent on it, the upstairs toilet is a luxury that I would like but may well have to do without as I feel the house will quite literally swallow money, but again this is my reasoning for such a low offer to start. I know they have had lots of viewings but not a single offer.

clark24

Ok so basically do you love this house or is it that you may be able to get it cheap?

If you really love it and are prepared to spend vast amounts of money making it safe, habitable and your home then ok, but offer higher.

If it is just in the hope of getting a cheap house forget it, it won't end up being cheap in the long run and the stress in the meantime will do your nut in, while they find more and more expensive things wrong with it.