Really struggling with what to offer

eve824

We are really interested in a run down Victorian detached house on a large  plot in the village we currently live in. We viewed it and put in a full asking price offer but it has gone to sealed bids now unfortunately. I am told there were 6 other offers. 

We think they purposefully listed the house under its market value to create a frenzy so it would go to sealed bids. We are really struggling to work out what to offer as we are selling out current house for over £100k more than this one, so we can afford to bid way over the guide price but we obviously need to extend and refurbish the place but don’t have time to get builders involved to estimate the costs of that before the offer is to be submitted. It’s also a very rare find locally so there’s nothing I can find to compare it to! 

My other half wants to go in quite a long way above the guide price (£50k) to secure the house but I’m concerned we will seriously overpay and have to scale down the renovations as a result.  

Help! Has anyone been in the same situation? 

[Deleted User]

eve824 said:

Help! Has anyone been in the same situation? 

Probably, but that's not going to be of any help.

You need to start by checking your budget - you don't sound sure as to whether paying 50k leaves you enough for renovations or not, so figure that out first.

Once you know that, you have your top figure that you CAN pay, so you just need to work out the most you're WILLING to pay.  You're obviously happy to pay over asking price as you like the property, but you still need to figure out its worth to you.

RelievedSheff

Not sure anyone on here can really offer you much in the way if advice with such little information.

You need to work out what you can afford to pay for the property and then make your offer based on that.

kazwookie

How ever much you 'think' the renovations are going to cost add at least 20k or so to that, as in old properties the cost is going to be more than you budgeted for. Builders will 'find' stuff when they take the property apart, such as damp, rot, roof problems, electric problems, drainage problems etc.

coachman12

As already said, it is a question of balance----how much do you want the house and would the £50,000 left in reserve be enough to leave enough for renovations and also leave a bit of a profit ?
One thing that's not been mentioned in replies to your question, eve, is : you say you haven't got the time to consult a builder about how much it might cost to carry out works you have in mind-----be sure that is wholly accurate because I think a lot of builders might be content to give you an informal "ballpark" figure just by spending an hour of their time within a couple of days of you telling them about your position ; it's better than nothing and you really need such an opinion , I think. Good luck.

youth_leader

My house needed extensive renovation, I had commissioned my own full structural and it came out at £175K-£220K - roof, windows, damp etc.  I discussed this with my EA and my house was priced low to reflect this.  Sorry you didn't have time to have a survey done, were the renovations obvious?  Good luck with whatever you decide.

SuperHung

You can always offer, get survey done and pull out if it doesn't match the price.

Tracet74

If you have time, you could ask a surveyor to carry out a Desktop Market Valuation of the property (assuming there's not enough time for them to inspect).  This would give you a clear indication of what the property is worth in its current state, so you know the true value of the property. 

It's then up to you if you want to offer over what the property is worth.

ouraggie

It is not always necessarily the highest bidder who is successful. eg It may be that the vendor hasn't yet found a place to buy so they may prefer a buyer who's not in a hurry. Or they may need a quick sale so a cash buyer or FTB would be preferable. I would try to find out their situation, either from them or the EA and definitely mention that in my bid. 
Oh, and years ago my best friend was in your shoes. She wrote a letter in with the bid, saying about how she'd loved the house for years and always dreamed of living there etc etc. Her OH said they would think she was a nutter but she still did it. They got the house and the vendor's daughter said it was because her parents knew the house would be loved.

rik111

If you like we’ll all pop round and evaluate it for you..... Not quite sure how you expect any to give you a sensible answer, maybe link the house......

Cakeguts

Years ago when I put in an offer on a house like this we had a structural engineers report first which we then included with the bid. I won because although it wasn't the highest offer the vendors realised that I knew what I was buying and the amount of work involved.