FTB advice

jcrennie

https://www.rightmove.co.uk/properties/102121682#/

I put an offer of 144k on this property. It is liveable but it needs a new kitchen and the management company that look after the property does a questionable job. There are other parties interested apparently and the vendor wants 160k.

They bought it for 130k in April 2019 and have done minimal value add work to it. The price is all because it is close to York Station and the EA's lenders reckon the project there to flatten the bridge will add value (I contest this as I'm local to the area. The project will take years+ there is no extra space).

My question is more whether I should just walk away. The EA reckons they've had offers of 155k. That would be really stretching my budget and leave me with little capital to do the extra work but I could go there. But I also don't see how the house has added value in 18 months despite minimal work done to it so I also don't know whether I'd be overpaying and would only look to be in the property for 2-3 years max myself.
Any thoughts? I'm still new and naive to the process. I did get a little shirty with the EA yesterday but they're obviously advising the vendor to hold out for 160 which is well within their right.

FTB_Help

Sooo much has changed between April 19 to today so its not about th current owners adding value.

The property market is not the same as it was 2 yrs ago.

2 yrs ago it may have been a good price at 130k, today maybe properties in that area are selling for 160k.

You can't just go by what owners have done or not done to the property.

They may have had lots of offers in at 155k, and if its not worth that for you then walk away, you can leave your offer on the table and they may give you a call back should the other offers fall through (or not exist)

UnderOffer

Wow, that was not what I was expecting, looks lovely, thought the link would open some tatty looking terrace or a boring looking modern flat😬. 

If they’ve really received £155 then can’t think why they haven’t accepted that already and taken off market. Any offer below £155 will probably not be considered, you could push your FTB status? But not sure that will sway vendors, in fact some sellers can be put off. 

AdrianC

jcrennie said:

https://www.rightmove.co.uk/properties/102121682#/

I put an offer of 144k on this property. It is liveable but it needs a new kitchen and the management company that look after the property does a questionable job. There are other parties interested apparently and the vendor wants 160k.

They bought it for 130k in April 2019 and have done minimal value add work to it. The price is all because it is close to York Station and the EA's lenders reckon the project there to flatten the bridge will add value (I contest this as I'm local to the area. The project will take years+ there is no extra space).

My question is more whether I should just walk away. The EA reckons they've had offers of 155k. That would be really stretching my budget and leave me with little capital to do the extra work but I could go there. But I also don't see how the house has added value in 18 months despite minimal work done to it so I also don't know whether I'd be overpaying and would only look to be in the property for 2-3 years max myself.

Unless you have access to a time machine, the price in 2019 is irrelevant. You cannot buy the flat for that price now.

It was listed on 19th January, for £160k. It is now just a fortnight later, and they allegedly have offers of £155k already. There was a "property launch" event four days ago.

If you were the seller, how much attention would YOU pay to somebody who insisted they had a right to pay £144k because they thought it was overpriced? No, nor me.

Let's put it in context...
There are just three two-bed flats listed in the £140-180k price range within half a mile. This is the cheapest. Both of the others (£170k and £180k) are being sold with sitting tenants.
Go down to 1 bed, and you have...
https://www.rightmove.co.uk/properties/88696495#/ (£160k - listed four days ago)
https://www.rightmove.co.uk/properties/88784377#/ (£155k - listed today)
Go wider to 1 mile, and you have...
https://www.rightmove.co.uk/properties/77420115#/ (£165k - listed last week)
https://www.rightmove.co.uk/properties/70959324#/ (£140k - listed in June)
There are no cheaper two-bed flats within a mile on the market.
Go wider still to 3 miles, and you have...
https://www.rightmove.co.uk/properties/102291170#/ (£155k - listed last week)
https://www.rightmove.co.uk/properties/97372661#/ (£160k - listed September)
https://www.rightmove.co.uk/properties/86818828#/ (£158k - listed November)
...and that's about it.

I think that all confirms that you have two choices, and only two... Either up your offer to something VERY close to asking, or change your expectations of what you're going to get...

Buying for 2-3 years is rarely worthwhile, because of the cost of purchase. You would have to be very lucky and get in before price rises - which you definitely aren't doing here, by the sound.

anteguardian

It all comes down to what you think the property is worth - nothing else matters. 

If you feel the amount you’ve offered is what it’s worth, then be content in the fact you won’t pay over the odds for the house. Like has been said above, if they haven’t accepted the 155K offer then there’s a question mark there. You may be in a better position than you think, but you won’t know unless you ask them.
If they won’t take your offer seriously then either persist, up it, or walk away... 

hazyjo

Tbh the size of the second bedroom would make me walk. Lovely building though.

Doesn't sound to me like they'll drop. I had a similar thing where we were literally about £2k apart. I just refused to go up any more. Wasn't so much being stubborn, I was just up to what I was prepared to pay. They eventually got what they wanted from another buyer. Sounds like you're much further apart than I was.

cattie

It's a fine looking property & sounds so cheap compared to prices in SE. You say it needs a new kitchen, do you mean you'd like to have a new kitchen installed? Only there appears to be nothing wrong with the current kitchen-I expected to see a relic from the '70's or similar, not a reasonably uptodate & inoffensive kitchen it actually has. You can't expect vendors to accept low offers because of wanting to change what appears to be a perfectly decent kitchen.

As others have said, what the property sold for in the past has no relevance to what the property has been valued at currently.

Looking at the interior & exterior photos, I'd say the property would always bring forth prospective buyers.

jcrennie

Cheers guys there is some good advice here. I would say it doesn't need a new kitchen but after viewing the property it is definitely dated. I know nothing about property and the first thing I thought is - it needs a new kitchen.

I saw a similar property which was larger, had so much more storage but it just did not give the same vibes. I think I will go to 155k and just leave it there- supposedly there are 2 other FTBs and a cash purchaser who have offered closer to the asking price. My problem with the current EA (and where my naivety comes in probably) is the vendors are supposedly selling because they have a puppy. But I have no idea where this puppy lives in the flat as there is no bed for it! I do think they are being advised to hold out for 160k. I can totally understand why as if I were in their position I probably would too. I think I will just hold my nerve and if it's not meant to be, it's not meant to be. Nobody has offered it yet.

pbhb

At the end of the day all you can do is offer what a property is worth it to you and make sure the EA takes your offer to the sellers. They will usually go with the highest price or a balance between price and position of the buyer. If you miss out, you will find something else

jcrennie

pbhb said:

At the end of the day all you can do is offer what a property is worth it to you and make sure the EA takes your offer to the sellers. They will usually go with the highest price or a balance between price and position of the buyer. If you miss out, you will find something else

I'm not in a rush to move. I thought they might be as the bought in April 2019 and would assume they fixed the mortgage for 2 years. I don't know if this has an impact. Do you think if I said I'm in no rush to move in that could have an impact? I know the buying process is slow at the best of times but I would assume from what I have gathered off the EA they are going to move in to rented so that would save them money potentially.

AdrianC

jcrennie said:

https://www.rightmove.co.uk/properties/102121682#/

I put an offer of 144k on this property. It is liveable but it needs a new kitchen

jcrennie said:

Cheers guys there is some good advice here. I would say it doesn't need a new kitchen but after viewing the property it is definitely dated. I know nothing about property and the first thing I thought is - it needs a new kitchen.

Is it exciting? No.
Is it perfectly decent? Looks it.
Quick cheap visual upgrade if the carcasses are good - some new doors. Or a tin of paint...