Any Advice - 2 Bed Property

mimi1234

Hi all,

So I've seen a house come up a few streets away from where I live.  It's 2 bedroomed end terrace, looks a bit knackered and is on for just under £125K.  There was an elderly chap who lived there and he must have moved out as the photos show it more or less bare. 

I've dusted out my list of questions to ask when I view this week.  I am a first time buyer and depending on what they accept, could possibly buy it without a mortgage.  

Does the "offer 10% less" still stand what with the pandemic?  Are houses going for less or more?  Obviously it's all dependent on variables but I haven't viewed for a very long time and wasn't sure. 

I've been told it's generated a lot of interest (and so had the one I viewed last year but that never sold!) and the first viewing is this Thursday.  I've managed to sneak in one of the earlier viewings at 10am.  If I like what I see, can I put an offer in and say take it off the market?  I've called the EA and asked that if they have a viewing tomorrow or Wednesday, I will take it.  Mind you, I guess that's all dependent on the lockdown.  

This isn't my dream house and I have no intentions of living in it forever but I wouldn't mind getting my foot in the door.  

Thanks to anyone who might be able to advise.

GDB2222

If they actually have a stream of people booked to view it, there is nothing (sensible) you can say that will make them take it off the market.

AdrianC

mimi1234 said:

So I've seen a house come up a few streets away from where I live.  It's 2 bedroomed end terrace, looks a bit knackered and is on for just under £125K.  There was an elderly chap who lived there and he must have moved out as the photos show it more or less bare.

What's it worth done, what needs doing, what'll it cost to do, and are you willing to live in a project?
Do you have the first clue about the realities of property refurbishment?

Does the "offer 10% less" still stand what with the pandemic?

It's every bit as utterly useless a generalisation now as it ever was.
But, as a rough clue, you suggest that it's a property that's just come onto the market and which you expect there to be a lot of interest in... In that situation, ask yourself why on earth they would entertain a low-ball offer...? It's more likely to cross you off the list of sensible potential buyers when it comes to asking for final bids.

Are houses going for less or more?

Given that we don't even know where in the UK it's located, all bets are off on that one.

If I like what I see, can I put an offer in and say take it off the market?

That depends entirely on the vendor.
You don't even know who the vendor is. It may be the old boy. It may be a relative acting on power of attorney to try to fund care home costs. It may be the executor of his estate. or it may be the cat's home that's inherited it.
How likely they are to accept a quick low-ball offer depends entirely on the circumstances, as well as the individual.

This isn't my dream house and I have no intentions of living in it forever but I wouldn't mind getting my foot in the door.

So you're looking at it purely as a "tart'n'flog", or more than that?
If the former, do you have the slightest clue as to the likely profitability, once you've taken account of all the purchase and sale costs...? Are you willing to put up with that much hassle and inconvenience for that little money?

youth_leader

Have you compared the price to others in the street?  If it is priced lower due to the renovations I doubt a lower offer will be accepted.

I saw a bungalow in October and was the first to see it, I offered full asking price.  The owner wanted the three viewings booked in to go ahead over the weekend.  Two offered full, the third offered just under.  On the Monday the estate agent rang and said if I increased my offer over asking price I could secure it, the vendor accepted and it was taken off the market.  The vendor was slow to supply the EA with her solicitor details,  I had a ten day wait for the Memorandum of Sale.

Salemicus

If you want them to take it off the market, you need to make a high bid, at least asking price, maybe more. The bid needs to be so good that they don't think they'll get better from anyone else. Why on earth would they accept a bid 10% below asking price when they have plenty of other viewings lined up?

Put yourself in the vendor's position. 

mimi1234

AdrianC - you are right.  I don't know anything about property refurbishment so I wouldn't be able to hazard a guess at how much it would cost and what would need doing.  I'm just going off the photos on the website.  From previous experience, I know some photos are photoshopped and the reality is a lot different.

It wouldn't be a tart and flog.  If my DM moved in with me,  it would be perfect but I don't think she has any intention of moving from this house!

Salemicus - good point.  I'm just going on what the EA said to me.  There might be no actual viewings but that's what I was told on the phone.  The last property I went to view, a year ago, supposedly had a viewing before and after me but I went about half an hour early and walked around.  The EA turned up 10 minutes late, she actually drove to the property, and then whizzed off straight after so I think sometimes they make it up.

Youthleader - it's more or less the same price as others in that street. 

Anyway, I have taken everything you have said on board and will offer the price they are asking for if it feels right for me.  No point in offering under and then it being sold to someone else. 

hazyjo

I'd always offer a little under or they'll be thinking they should have put it up for more and it's underpriced. You can always up it if the EA says 'no way, already had 3 offers this morning'. IMO they are very unlikely to give you a flat no without coming back to you to see if you can up it (with or without any competition!).

lesalanos

mimi1234 said:

AdrianC - you are right.  I don't know anything about property refurbishment so I wouldn't be able to hazard a guess at how much it would cost and what would need doing.  I'm just going off the photos on the website.  From previous experience, I know some photos are photoshopped and the reality is a lot different.

It wouldn't be a tart and flog.  If my DM moved in with me,  it would be perfect but I don't think she has any intention of moving from this house!

Salemicus - good point.  I'm just going on what the EA said to me.  There might be no actual viewings but that's what I was told on the phone.  The last property I went to view, a year ago, supposedly had a viewing before and after me but I went about half an hour early and walked around.  The EA turned up 10 minutes late, she actually drove to the property, and then whizzed off straight after so I think sometimes they make it up.

Youthleader - it's more or less the same price as others in that street. 

Anyway, I have taken everything you have said on board and will offer the price they are asking for if it feels right for me.  No point in offering under and then it being sold to someone else. 

If you are flipping it then it will need to be financed with cash or a bridging loan rather than a mortgage 

AdrianC

Let's have a look at the RM link...

Crashy_Time

Offer them 100k cash, no chain, no hassle, no mortgage wait, unless of course it should really be on the market for 60k?

AdrianC

Mimi sent me the RM link. It's not for me to make it public, but suffice to say that the place needs a LOT of work (it doesn't even have any CH or a kitchen worth the name), and is priced level (or higher) with larger houses that need far less within a mile.