Advice re house purchase

smmeadow

Currently trying to buy my first house absolute minefield! Having no experience doesn't help.

House is in a state we knew this, needs complete refurb. A house that is done up nicely would sell right now for 125-130k It's a 3 bed terrace on a main road in the midlands.

We originally had an offer accepted for 115k. It needs central heating new kitchen new bathroom. Plastering skimming complete redecoration. The house has been on the market since November and previously had offers from one person below 110k.

Just had a survey done which highlighted dodgy wiring and possible rising damp. Electrician did a check of the house and said it's the most unsafe system he's ever seen and he's disconnected it to prevent harm. He quoted 3.5k for retire. The property is currently vacant. Still waiting for a damp report. I don't think the damp is too bad from the survey but still need the report.

The owners paid 82k in 2011 and have basically made the house worse since then not better!

I am a cash buyer so I don't have a mortgage valuation to fall back on and I am worried about getting shafted. The seller is very difficult to deal with and originally listed the house for sale at 135k. I am definitely dropping my offer from 115k but I don't know how low to go. Waiting for damp report but I am worried about spending more money on the house than it is eventually worth done up.

I am reculant to pull out as I really want to get out of the renting trap. I am doing post grad study so can't get a mortgage for a better house.

Any advice is greatly appreciated

p00hsticks

smmeadow wrote: »

I am reculant to pull out as I really want to get out of the renting trap. I am doing post grad study so can't get a mortgage for a better house.

Any advice is greatly appreciated

Can't give any advice, but my opinion would be to run away now ! If you can't get a mortgage for a better house, how are you going to fund the refurb of this one ? If you really want to do post-graduate studies whilst living in a hovel with no electricity, no heating, damp, etc, then you might as well just squat somewhere rather than spend £115k of your own money on what sounds like an absolute money pit.

pinkshoes

If a nicely done up one would only get £125k, then £115k is rather steep!

How much is it going to cost to put right??? £3500 rewire, £3000 central heating, £4000 new kitchen etc...

£100k seems about right!

davidmcn

smmeadow wrote: »

Just had a survey done

I am a cash buyer so I don't have a mortgage valuation to fall back on

I take it you didn't ask for a valuation as part of your survey? Can't you get them to that now?

lincroft1710

smmeadow wrote: »

I am definitely dropping my offer from 115k but I don't know how low to go.

Any advice is greatly appreciated

Re-wire, new CH, kit and bath plus damp rectification and finally full redecoration after making good, could be £20K, maybe less, maybe more.

Personally if house "done up nicely" is £125K, then the max I would offer is £105K

smmeadow

I have enough cash in the bank to do it up. I just don't want to spend more than it's worth. The next step up in my area for 3 bed is 180k to 200k. I don't have quite that much cash

GDB2222

lincroft1710 wrote: »

Re-wire, new CH, kit and bath plus damp rectification and finally full redecoration after making good, could be £20K, maybe less, maybe more.

Personally if house "done up nicely" is £125K, then the max I would offer is £105K

That's the completely logical approach, but the practice seems to be a bit different and people tend to pay more than the logical value. There are a couple of reasons for that.

One is that they are good at DIY and can genuinely do the work for less money. My guess, though, is they underestimate the work involved. You do hear of couples splitting up over this.

The other is that this route gives them a chance to buy a house that's better than their budget really allows and gradually improve it. The snag is that they are living in a hovel in the meantime.

smmeadow

I am planning on staying in my rented property whilst the work is done. My husbands best friend is an electrician and my mother in law works in kitchens and bathrooms so gets it all at cost. Obviously the seller doesn't know this fact. So it's not an awful purchase as long as I get it for the right price

GDB2222

smmeadow wrote: »

I am planning on staying in my rented property whilst the work is done. My husbands best friend is an electrician and my mother in law works in kitchens and bathrooms so gets it all at cost. Obviously the seller doesn't know this fact. So it's not an awful purchase as long as I get it for the right price

I forgot that option!

smmeadow

And the seller used the house as a cannabis farm seen it with my own eyes as I rent a few doors down so she can't be short of a few bob

Hoploz

smmeadow wrote: »

And the seller used the house as a cannabis farm seen it with my own eyes as I rent a few doors down so she can't be short of a few bob

The roof will be shot then, due to heat and condensation.

Run away!