How to price the hassle part of renovations

somethingcorporate

The hassle factor is subjective and depends on the market. If it's more hassle to you then walk away or reduce your offer and be prepared to be told to sling your hook.

Obviously you know there is no set % so just what do you thinks its worth?

I struggle to see how it's £50k by the way so make sure you get a couple of detailed quotes to back it all up if you intend to negotiate hard.

Saxy1970

I googled the itemised prices and it's pretty bang on, if anyone on the prudent side - costs being 35-40k plus vat - the place has really been neglected and bodged - obviously I will offer the chance to get specific quotes if they are flexible to move down enough in principle

dirty_magic

I'd walk away tbh and leave this to someone who is looking for a serious renovation project. It doesn't sound like this is what you're looking for.

These houses are usually bought by builders or tradesmen that can do a lot of the work themselves to keep costs down.

We're doing just cosmetic renovations on ours now and that's bad enough; full on renovations won't be fun if you're not into it to start with. Are you planning on living in this house while you do the work?

davidmcn

Saxy1970 wrote: »

The surveyor said its worth nil as a mortgageable property and told me what a developer would pay for it cash - he said 170k would be at the top end. I doubt the vendor would accept this though it's not mortgageable and nobody would offer significantly more with this amount of work and the risk of more work when unseen horrors surface.

So I'm not sure why you think it's worth more? Sounds more like the seller is deluded about its value, and you'll either be paying over the odds or have a possibly fruitless discussion with the seller about the true market value.

Saxy1970

Yes I am planning to move in it asap and am seriously considering walking away even if the seller is willing to take that much less for it.

I didn't say it is worth more - I'm trying to understand what the fair price is for it.

The seller is obviously going by what estate agents valued it at initially and the most serious problems are not obvious - it's only when you lift carpets etc. and take a proper look in loft etc at beams, at roof and chimney etc etc. The estate agents would not value the property at what they did had they known. The sellers may well be deluded but they've neglected place for decades and soon will realise their inability or unwillingness to fix leaks etc at the time has caused tens of thousands worth of damage; and their decision to do things on cheap where they have done them has resulted in them losing value and not gaining. So for example there Is the loft room done very badly - they didn't strengthen it enough causing the roof to bow and joists to weaken. The velux window was not properly installed and the structure around it inadequately supported. It would have been better had they left it completely as it costs more to undo the damage. Ditto with extensions

Saxy1970

By the way, I'm taking it as read she won't come down that much, hence why I'm viewing other properties as a back up plan now

dirty_magic

Saxy1970 wrote: »

Yes I am planning to move in it asap and am seriously considering walking away even if the seller is willing to take that much less for it.

I didn't say it is worth more - I'm trying to understand what the fair price is for it.

The seller is obviously going by what estate agents valued it at initially and the most serious problems are not obvious - it's only when you lift carpets etc. and take a proper look in loft etc at beams, at roof and chimney etc etc. The estate agents would not value the property at what they did had they known. The sellers may well be deluded but they've neglected place for decades and soon will realise their inability or unwillingness to fix leaks etc at the time has caused tens of thousands worth of damage; and their decision to do things on cheap where they have done them has resulted in them losing value and not gaining. So for example there Is the loft room done very badly - they didn't strengthen it enough causing the roof to bow and joists to weaken. The velux window was not properly installed and the structure around it inadequately supported. It would have been better had they left it completely as it costs more to undo the damage. Ditto with extensions

Honestly, I wouldn't buy it even if she offered it for £150k, which is unlikely. Everything always seems to cost more than you budget for it as more problems are uncovered, especially if you're not doing the work yourself, and you have to live in this house at the same time. They don't live in the houses they're renovating when you see it on TV and they make it look easy.

There must be something more suitable on the market!

moneyistooshorttomention

I see where you're coming from more now - as there is a world of difference between "tired but serviceable" and "knackered" and this house is obviously knackered.

So - yep...there still wont be anything off for your hassle. BUT I would offer what the house has proven to be worth in the state its in now (ie taking into account all that hidden stuff and that its proven to be so bad as to be unmortgageable).

So - just that = offer the price the house is worth in the knackered condition its in + tell the vendor clearly that a surveyor has found it to be unmortgageable and tell the vendor "It boils down to a developer or me - both of us would offer you the same for the house. Take it or leave it".

Be prepared for the vendor to tell themselves that "It isn't really that bad and I'm sure someone could get a mortgage on it" and turn down your offer.

Be prepared for the house still being on the market in some months time - and then repeat your offer if you are still looking.

It is NOT easy to live in a house whilst its being renovated # voice of experience time. Everything getting as dirty as heck/endless searches for possessions buried under everything else/clambering over stuff to get to your bed to sleep in at night (that's assuming you haven't been thrown out of your bedroom and are sleeping on the sofa - because its the bedrooms turn to be done).

EDIT;....oh and don't forget any "pushy" type neighbours you have that have been used to dominating things for years will scream merry hell about the renovations and insist on telling you repeatedly that the last owner lived in the virtually uninhabitable wreck as it was (implication = so why cant you do so too and stop disturbing their "peace and quiet" and creating disruption to poor selfish little them?)

Nobbie1967

Make an offer that your happy with and then walk away. I doubt they'll accept as their expectations have been set by the EA valuation without knowledge of the underlying problems. I suspect it will take a while for the vendor to realise that the works required really are that extensive, maybe a few more buyers pulling out after survey.

As others have said, this will probably be bought by a builder in the end to do as a side project. Your costings are based on the spec you want, whereas a builder will just choose a bathroom and kitchen that is good enough to sell the place to 80% of the viewers. Having just had suppliers in to quote on a kitchen, it's amazing the range of prices out there. If it's going to be your house you will always tend to spend more money on the things that won't add anymore to the value to the finished project.

chappers

If it really is that bad I would walk away, you were never in this as a development and it sounds like the place would be pretty much uninhabitable while all that work was going on.
You didn't say if you were buying this place with a mortgage, but bear in mind you may struggle to obtain one.