FTB: How much % under to offer?

JenniferMcConnell

FTB here! Seen a house my partner and I love, ticks all of the boxes and we are emotionally invested.
The house is current on at OIEO £550,000 - but they had an offer fall through just before the lockdown. The house is derelict, hasn’t been lived in for years. Four bed detached houses in the area go for £600+, so I do agree that the price is already reflecting the work that needs doing. We have a second viewing this weekend with a builder, but the property is riddled with damp and it needs new bathroom and kitchen to be liveable so I’m expecting the builder to quote me a big number to make it liveable. Not luxury, just liveable. (Note: we have a toddler and wfh, we aren’t doing it ourselves!)

We are FTB, have the mortgage guarantee in place. We can move quickly. 

I know it’s OIEO but what with market uncertainty, the condition and our favourable position, is it MAD to offer 10%+ below asking.

Keeping under £500 also allows us to keep the stamp duty incentive. 

Thanks hugely in advance!!!! 

daivid

Offer what you think it is worth or what you think you might get away with/negotiate to what you think it is worth. If you offer too little the vendor may write you off as time wasters.

I think you might be overthinking your hand in terms of getting a big discount, you say you can move fast but no where near as fast as a cash buyer and from what you say the vendor is in no hurry whatsoever. The alarm bells that ring for me though are your points on the kitchen and bathroom, if you're exaggerating a bit and they are just a bit grotty no problem. If on the other hand they must be replaced for the house to be livable then it will be classed as uninhabitable so your mortgage guarantee may no longer stand - if this is the case you wont be able to buy the house anyway.

JenniferMcConnell

Yes ok I might be exaggerating,  but the property hasn’t been lived in for four years and so the kitchen and bathroom is very very very grotty. 

Competsoph

Once again after my recent experience bidding on houses, the vendor will only accept what they want. COVID, although on the minds of many, has not changed what vendors want or potentially need. I would chat with the EA, Get an idea of how the vendor feels. Offer less but be prepared to get a firm no. You’ll get an idea how they feel once you’ve offered. Further, as much as you can offer whatever you want, having a good relationship with the vendor may help you, offering a ridiculous amount could be detrimental, in others cases it could make absolutely no difference.

Decide what you think it is worth, make the offer a few % less and negotiate from there. Good luck!

Mutton_Geoff

FTB with a young child and you want a project?

Crashy_Time

Got a link?

RelievedSheff

Offer what you think it is worth, but do not underestimate the amount of work it is going to take to fully renovate a property. You also need to consider the impact on your family living in a building site long term unless you have somewhere else to stay while the work is done.

JenniferMcConnell

I‘m too new to post links.  Photos don’t do it justice for how bad the damp is (at least four cases of damp in each room). 

Been on market since Feb and previous buyer fell through. I don’t know about plumbing, gas, boiler etc yet, will know more this weekend.
Thanks everyone for help so far!

JenniferMcConnell

JenniferMcConnell

The particulars...

UnderOffer

Do you know why the other offer fell through? May be worth asking the EA this question, because if it was a bank valuation that gave a lower offer but vendors wouldn’t negotiate, will save you time and disappointment by not pursuing this.