Buying property advice

Newlywed_2

Good morning.

I have recently seen a property which is a good size plot with a large garden for around 249k. It has been on the market for nearly a year and not sold.

I believe this is due to the property requiring modernising inside.

So any offer we put in has to include the cost of updating the bathroom, kitchen etc.

That being said, the property has loads of potential.

Due to this, an offer was placed around 215k which was rejected as they said the property had already been significantly reduced.

Next move.. play it cool and wait for them to recontact?
A small increased offer?
Any other option?

Properties have sold for 250k ish in the area but haven't required as much work to modernise.

Any advice or suggestions duly appreciated.

Sibz

Perhaps I'm naive (only bought a couple of houses, 3rd in progress) but I think you should seek to open more communication. Are the sellers open to you arranging to get some quotes for work needed so that you can give them your 'best offer'? I'd think a more direct approach could save everyone involved time in second guessing one another sometimes.

If you're genuinely interested in the property I don't think it's too much to request this - gives you a head start in getting stuff done too. Worst case is they say no and you're just back to where you are now.But if it's been on the market nearly a year they might welcome genuine interest

AdrianC

You need to decide what the place is worth to you.

If it's going to swallow ~£30k, and would be £250k-worth when done, then you're in the right ball-park. The upside of buying a place that needs a refurb is that it'll be exactly to your tastes and preferences. The downside is the hassle and likelihood of budget overruns.

If £250k properties in the area still need some modernisation, then that suggests a place that's fully fresh and finished would be somewhere north of that.

But, ultimately, if the vendors are holding out for a naive optimist with rose-tinted glasses, then so be it.

eddddy

An acceptable offer will depend entirely on the mindset of the sellers - are they owner/occupiers?

For example...

• They may have spent the last year getting more and more frustrated and desperate to sell - so they might consider a lowish offer.

• They may have spent the last year becoming indifferent and disillusioned about selling - so they might need a highish offer to persuade them.

It might be worth 'chatting' with the EA to find out more about the seller's circumstances and expectations.

The EA will want the property sold (assuming they're working on commission), and the EA won't be too bothered whether it sells for £215k or £249k.

Newlywed_2

The lastest update..

We visited the property with a qualified builder who advised us of certain renovations which needed doing.

I then phoned the house owner and increased our offer to 225k.

This time they asked me to submit it to an online based estate agent.

They then did not accept or reject. It states they want to negotiate the offer. However they have not suggested a revised figure.

Surely any negotiation requires two parties.

Any advice duly appreciated. What to do next)

AdrianC

Newlywed wrote: »

I then phoned the house owner and increased our offer to 225k.

They then did not accept or reject. It states they want to negotiate the offer. However they have not suggested a revised figure.

Surely any negotiation requires two parties.

Yep.

That doesn't mean the two must suggest figures in strict rotation.

There are two parties here. You and the vendor. The outcome of the negotiation will either be an agreement to purchase (presumably at some price higher than your current offer), or no agreement.

You've made an offer. The vendor has said "We're getting there, but we aren't there yet. Higher."
Ball in your court.

Any advice duly appreciated. What to do next)

Increase your offer or walk away.

billy2shots

Did the builder give you an idea of the cost to do the work to bring it up to the standard of the £250k places?

Newlywed_2

An estimate of 10-20k depending on how far you go. All advice on here is appreciated.

At the moment all of our negotiations and discussion has been direct and the vendor has said they like us FWIW.

There are details to contact the local online agent.

Would you advise sticking to direct contact or try and find more out from EA

AnotherJoe

I would say either one of;
1. "Sorry that was my final offer so I'm now looking elsewhere please get back in contact if you change your mind"
2. "Here's my final offer (increase to whatever is your final offer, might be marginal, up to you ) let me know if you wish to proceed"

billy2shots

An estimate of £10-£20k would mean that a top value of £230k for the house would put it inline with what's sold already.

The vale doesn't really matter if it's the perfect house for you (schools, work, family, friends etc) and people are often happy to overpay for 'The One'.

So from £225k currently offered it doesn't leave much wiggle room to keep within fair value from what you have said.

I'm a risk taker so I would be inclined to say that 'having spoken with a builder I feel £225k is a fair offer, I understand this is not quite what you wanted but I would like to leave this offer on the table for a week'.

That way you haven't closed the door by making a final or best offer but it puts pressure on the vendors. Sleeping at night with no other offers coming in and an offer on the table often yields the right result.

Just one thing though. Are you positive regarding your homework on sold prices. £250kish isn't that great a figure from which to work from.
If it's £250k then the vendors must have over valued there's somwhat.
If it's £259k then your current offer maybe too low to accept.
Asking for 10% off an overvalued home is one thing. Trying to get 10% off something that is already fairly valued is a whole other story.

Newlywed_2

Thanks for your reply.

Regarding the last paragraph. It is difficult as it's subjective.

The vendor would say it's ready to be moved into straight away. We would say it needs some renovations and modernising.

In this particular area there have not been many come up for offer and therefore many sales to base this on.

IMO 250k is slightly over for the modernising and renovations that need doing.

If it was all done up and no work required 250k would be a fair price.