How cheeky an offer is a too cheeky

House_buyer_2020

I’ve seen a house in the perfect location for us, it’s a 1960’s semi and the owner has passed away. It’s been on the market for over 6 months at £270k with no offers, it needs complete modernisation. I would hazard a guess that no tradesman has crossed the front door since at least 1990 judging by the decor and state of the circuit board. 

Other 3 bed houses in the area in good condition have been selling at around £270k-£290k. I asked the agent what he thought it would be worth if it was modernised and he said £325k-£350k (I think he’s being very optimistic!) it’s on a small plot which means there’s only space for one car to park out front, no garage and the smallest back garden on the street. Would an offer of £220k be too low, I think it would easily cost £30k-£40k to modernise.

Alter_ego

If your offer doe's not embarrass you,  it's too high.

eidand

220k ... you can try but feels a bit too much of a mockery.  From what you said, sounds like a more realistic range is 230-240k.It's just guess work though

RelievedSheff

Alter_ego said:

If your offer doe's not embarrass you,  it's too high.

While we have used that method buying boats and cars we have not with houses. We go in with a firm and fair last and final offer to secure the home we want.

RelievedSheff

eidand said:

220k ... you can try but feels a bit too much of a mockery.  From what you said, sounds like a more realistic range is 230-240k.It's just guess work though

I think £220k will just annoy the vendors and make them think the OP isn't a serious buyer.

eidand

RelievedSheff said:

eidand said:

220k ... you can try but feels a bit too much of a mockery.  From what you said, sounds like a more realistic range is 230-240k.It's just guess work though

I think £220k will just annoy the vendors and make them think the OP isn't a serious buyer.

Well, that's always the risk.
How many people have we seen here who went in with stupid offers and missed out on something they really wanted?
You reap what you sow .... being a cheap !!!!!! does not help much when it comes to houses

House_buyer_2020

Alter_ego said:

If your offer doe's not embarrass you,  it's too high.

I like that!

to be honest the house itself is not that appealing, the bathroom and kitchen are very small but it’s a 10 minute walk to work so I’d be willing to put up with it for five years or so if we could renovate it, make a bit of money and pay as much as we can off the mortgage to afford somewhere bigger, so I wouldn’t be too upset if we didn’t get it. We can get somewhere nicer in budget but it means a 30 minute drive to work each way.

need_an_answer

Your dealing with a set of people who want to amass as much money as they can for the estate of the deceased person.
This can often mean that it turns into a protracted set of negotiations over the price...yes you see it as a doer upper...they see it as an inheritance so initially the 2 sides are never on the same page and to be honest either you need to increase the amount your willing to offer or they need to get real about what the place is worth....its a 2 way thing and you may find that whatever you offer lower than the asking price will be too cheeky for them to accept.

You may also find that the property remains on the market for a substantial time or at least until it starts to cost those inheriting the funds money to maintain/pay bills on.
By all means go in low but remember that possibly they want maxim back so prepare to be rejected.
When an agent wants to take on the property especially if its in a desirable area then they will always push for the highest figure they can...the beneficiaries then get a taste of what its perceived worth is and will hold out for that figure as long as they can....

Sometimes you need both sides of a probate purchase to be realistic in order to push the sale through.

Theres a place for sale in a complex that I  own a property...been on the market for almost 2 years now and the executors are not budging on the price because thats what they were told its worth....other stuff is selling in the complex so its issue is purely price and the expectation of the executors and the beneficiaries


I dont doubt your figure of £30-40k for modernisation...I did one myself 7 years ago and it came in at £46k.
Are you able to post a link to the house ...someone is likely to know the local area and might be able to give you an unbiased view unlike the agent who is potentially overegging the potential worth of it after renovation. Although dont expect to make money from the renovation unless you are increasing the footprint of the property significantly...refurb costs are just that ,to bring it up in line with modernised things that are selling...general rule is you spend £30k on  generally doing it up i and thats the sort of figure if done well you increase the value by.Extra value and increases in price come from an upturn and rie in property prices over time.

MalMonroe

I don't think that's cheeky at all, I'd put in that offer. They can only say no. And if you really did want the property, you could always increase it. (That's what they do on Location Location Location anyway and it always works!) 

Once you have put in an offer though it'll be very awkward to try to lower it, so if you start off low, then you can only go up. Makes sense.

MalMonroe

Alter_ego said:

If your offer doe's not embarrass you,  it's too high.

Why did you put that apostrophe there though? You spoiled the whole effect, especially as you say "Loose means not tight, Lose means something is lost, simples no?" so we know you're grammatically aware. Perhaps just slip but then as you say, it's not really you anyway. 

AdrianC

House_buyer_2020 said:

to be honest the house itself is not that appealing, ... I’d be willing to put up with it for five years or so if we could renovate it, make a bit of money...

Simple answer: You won't make money from refurbing it. You simply won't. There will be more work than you expect, and it will be more expensive than you think. If it was going to be profitable to refurb, it would already have sold to a pro who can do the work cheaper and faster, and then flip it.

Meanwhile, you're looking at living in a building site that you don't like. But it's OK, it's handy for the work that's going to mean you take longer to do the house than you expected...