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Property Valuation

Toshi_2
Toshi_2 Posts: 25 Forumite
Fifth Anniversary Combo Breaker
in House buying, renting & selling
Hi all

Just had RICS - Homebuyer Report.
Market price of house is £165,000 and the current reinstatement cost of the property is £130,000?

So how much should we offer the buyer????
«13

Comments

  • anselld
    anselld Posts: 8,714 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Reinstatement cost is irrelevant for market valuation; it is for insurance purposes only.

    It is not for you to "offer the buyer". It is for the buyer to offer to you. How much have they offered?
  • Toshi_2
    Toshi_2 Posts: 25 Forumite
    Fifth Anniversary Combo Breaker
    Hi Anselld

    We are the buyer. it's on the market for £165,000
  • mrginge
    mrginge Posts: 4,843 Forumite
    what are you on about?
  • anselld
    anselld Posts: 8,714 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    So do your own research, e.g.
    http://www.moneysavingexpert.com/mortgages/free-house-prices


    Is this the Scottish system or the rest of UK?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Toshi wrote: »
    Hi all

    Just had RICS - Homebuyer Report.
    Market price of house is £165,000 and the current reinstatement cost of the property is £130,000?

    So how much should we offer the buyer????
    Re-instatment is what it would cost to clear the site after a fire, employ an architect, structural engineer and builder, and completely rebuild the property from the ground up.

    It has nothing to do with market value which might be much more, or, occassionally, less.

    You offer the seller whatever you are willing, and able, to pay. Only you, ultimately, can decide how desperate you are to have this property, or whether you are perfectly willing to find another similar one which you think you migh get cheaper.
  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
    Toshi wrote: »
    Hi all

    Just had RICS - Homebuyer Report.
    Market price of house is £165,000 and the current reinstatement cost of the property is £130,000?

    So how much should we offer the buyer????

    You offer the buyer anything you think he may accept.

    This report is for the People lending you the money to buy the property and tells them if they could get their money back.


    It also tells you how much to insure it for.

    Think about it, it costs the same to build a three bedroom house in a town up north, Sheffield say as it does in central London. But I doubt they will sell for the same price, but tics would place the same value on them.

    My three bed bungalow on the coast with sea view sold for double what it would had had it been inland!

    Cheers fj
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Toshi wrote: »
    Hi all

    Just had RICS - Homebuyer Report.
    Market price of house is £165,000 and the current reinstatement cost of the property is £130,000?

    So how much should we offer the buyer????

    £35k to buy the land. Be a bargain.
  • TrickyDicky101
    TrickyDicky101 Posts: 3,535 Forumite
    Part of the Furniture 1,000 Posts
    How come you've had a survey performed before you've agrreed a price with the vendor? That's a bit unusual to say the least
  • phill99
    phill99 Posts: 9,092 Forumite
    Part of the Furniture 1,000 Posts
    Thrugelmir wrote: »
    £35k to buy the land. Be a bargain.

    No. Because ypu will already own the land.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
  • Surrey_EA
    Surrey_EA Posts: 2,051 Forumite
    Tenth Anniversary 1,000 Posts
    phill99 wrote: »
    No. Because ypu will already own the land.

    Market value of property = £165,000

    Less reinstatement cost of £130,000

    Which indicates the plot of land has a value of £35,000. As Thrugelmir says, that would be a bargain.
This discussion has been closed.
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