Bungalow on market for over 1 year, what to offer

Scottish_Dorset

We've looked at a bungalow in a rural hamlet that needs modernising (new kitchen, bathrooms x 2, electrics, boiler and decoration).  It's a three bedroomed 1960s bungalow, one bedroom is an extension and has a flat roof.  It's up for sale for offers over £300k and has been on the market for over a year.  The neighbouring bungalow sold in 2016 for £248K, it has only two bedrooms but a much bigger garden (0.2 of an acre) and although needed some modernisation not to the extent of the one we are currently looking at.  It is owned by an elderly but fit lady.  It is full to the gunnels of 'stuff'.  According to Zoopla in our area property prices have gone down 1.64% (taking into account inflation) between 2015 and now for a house of this type.  Personally I think it is worth around £250k.  Most buyers have been put off due to its location and the work required.

Any ideas how to approach this?  We have a limited budget so most of the work would be done by ourselves.  If the house was done up, we couldn't afford it!

theartfullodger

Offer low, cash, swift completion
- subject to survey.

Price is not the only important factor.  Indeed others may be more important

RelievedSheff

If the 2016 property is the only one sold within relatively recent years then establishing the value of this bungalow will be quite difficult. In property terms 2016 is a long time ago and a lot happens with house prices in that time period.

What you think it is worth and what the vendor thinks it is worth are likely to be two very different figures. All you can do is put in your offer and see where it goes from there. If the vendor is not willing to accept your low figure, which is quite likely, then you will either have to raise your offer or walk away and find a different property.

Scottish_Dorset

theartfullodger said:

Offer low, cash, swift completion
- subject to survey.

Price is not the only important factor.  Indeed others may be more important

Thank you, unfortunately we are not in a 'cash' position.  We have a good deposit and a mortgage in principle.

theoretica

If you think it is worth around £250 and can afford that then offer it. You can't make the seller accept, but don't want to pay more than it is worth to you.

seradane

Unfortunately sometimes the reason things have been on the market so long is that you've got a seller that won't budge on their price, despite all evidence suggesting it's not worth that much. Make your offer, but don't be surprised if they turn it down.

youth_leader

Surely the bungalow is priced lower than other three beds, to reflect the condition and allow for renovation costs?  

Crashy_Time

RelievedSheff said:

If the 2016 property is the only one sold within relatively recent years then establishing the value of this bungalow will be quite difficult. In property terms 2016 is a long time ago and a lot happens with house prices in that time period.

What you think it is worth and what the vendor thinks it is worth are likely to be two very different figures. All you can do is put in your offer and see where it goes from there. If the vendor is not willing to accept your low figure, which is quite likely, then you will either have to raise your offer or walk away and find a different property.

The market is much much weaker than back then, for many people that probably was the selling window for top prices TBH. This sale sounds like the person selling is going to struggle with economic reality and might not be worth the hassle?

youth_leader

This vendor may have been wrongly advised as to what her bungalow is worth post renovation.  I was told my house would be worth £600K fully renovated, and advised to put it on for £400K.  A unique 5 bed semi detached a mile from the beach.  My whole selling experience was a nightmarish hell because of my belief the house 'would be' worth £600K when someone had spent £200K on it.

My experience was that many of the viewers the EA sent could only afford to buy the house as it stood,  and did not have the funds for the renovations, some of which were urgent ie the sash windows.  At the time I was not happy to accept offers of 15% less as the price was already low to reflect its condition.  I eventually got to the point where I would have given it away if I could have, this person might now be feeling the same. 

Crashy_Time

youth_leader said:

This vendor may have been wrongly advised as to what her bungalow is worth post renovation.  I was told my house would be worth £600K fully renovated, and advised to put it on for £400K.  A unique 5 bed semi detached a mile from the beach.  My whole selling experience was a nightmarish hell because of my belief the house 'would be' worth £600K when someone had spent £200K on it.

My experience was that many of the viewers the EA sent could only afford to buy the house as it stood,  and did not have the funds for the renovations, some of which were urgent ie the sash windows.  At the time I was not happy to accept offers of 15% less as the price was already low to reflect its condition.  I eventually got to the point where I would have given it away if I could have, this person might now be feeling the same. 

Imagine if you were trying to sell it now? I doubt many will share your views on "giving it away" though, a lot of people will just stay where they are rather than accept a lower value IMO.

youth_leader

I imagine if I was trying to sell now I'd be ordering the oil and wood to see me through yet another freezing winter