Price per sq m - good to justify an offer?

btcp

ciderboy2009 said:

But is it work that really "needs to be done" or work that you want to have done?

I'll be perfectly honest here, if someone was to come with me with details of exactly how they've worked out their offer price - including local prices per square meter - then I would be wary about accepting their offer as I would expect them to be a nightmare throughout the whole selling process.

Well, people can live in any house even in those sold on auction... But if houses in a better condition sell the same price or cheaper, why would you pay asking price?

appreciate your view on the “nightmare” vendor, I will take it into consideration. 

Irishpearce26

btcp said:

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I can be prepared to pay plus/minus 50k. For this amount I can replace heating, bathroom and kitchen. If the house is priced to sell (which I don’t know how to establish due to a lack of compassion) I can pay more , move in and save for this work. I don’t want to overpay if I don’t have to. And my preference is to spend  50k on upgrading right away.

OP I can only comment on the information you provide. The price will be down to rooms and plot size, whether the decor or kitchen/bathrooms are old are irrelevant to value. Heating yes you could factor this in but a survey report would give more weight behind negotiation rather than what you think you know. The surveyor will give you a valuation figure as well so that's maybe the best course of action.

MysteryMe

I would save yourself a bunch of time trying to work out loads of sqm because it gives no context to how the space is allocated. To use an extreme example it could be a property with one massive bedroom  taking up the whole of one floor or 3 smaller ones. Could be a massive hallway and a smaller living room etc.  There must be some common ground with other properties that have recently sold in the area. It's not going to be an exact science because not everyone wants the same thing. For some people an en suite is a must, for others off street parking etc. Most people focus on style of property detached semi etc, and number of bedrooms, has it got a garage or a driveway, size of garden -  the things you can't really change without getting into major building works. The more cosmetic works like kitchen and bathroom, well you need to take it into account as far as your own finances are concerned but that might not relate to much of a bargaining tool on the purchase price, certainly not high end kitchens etc.  I personally wouldn't bother writing a letter explaining the basis of the offer.  Put your offer in and what your current position is FTB or sold SSTC etc. If the offer is close you enter into negotiations, if it's not and you are too far apart continue looking. Never pay more than you are comfortable with. 

Scotbot

rik111 said:

It doesn't work like that at all.... A good point to start from would be the asking price plus how long it has been on the market. Plus it doesn't really matter what you "think" its worth, its what seller is willing it sell it for.

It does if you are an Estate agent, they estimate  price on sq meter basis and condition. It is a standard metric. 

Irishpearce26

Scotbot said:

rik111 said:

It doesn't work like that at all.... A good point to start from would be the asking price plus how long it has been on the market. Plus it doesn't really matter what you "think" its worth, its what seller is willing it sell it for.

It does if you are an Estate agent, they estimate  price on sq meter basis and condition. It is a standard metric. 

No they don't. My estate agent did no measuring at all when discussing price. They based it on the local market and houses that were similar in size. Ultimately it was me who set the price that i wanted to sell for. I went higher than they recommended but i knew my house had more desirables because of its location and off road parking even though it could do with new kitchen and bathrooms. I got over the asking price.

btcp

Irishpearce26 said:

No they don't. My estate agent did no measuring at all when discussing price. They based it on the local market and houses that were similar in size. 

 My EA did measure, they sent a person to measure rooms and draw a floor plan. How can you tell your house is a similar size without measuring? 3 bedroom house can be +/- 30 sq m and can be 100k difference in my area. Of course other factors matter but I am looking at 3 streets where everyone has the same parking and gardens. 

The price for my house was based on the local sold prices of houses similar in size, layout and condition. Luckily my house is a cookie cutter and we had a few sold in the area recently. The condition was taken into account. Of course I am yet to find out if it was a right approach, the viewings are still going on. 

Irishpearce26

btcp said:

Irishpearce26 said:

No they don't. My estate agent did no measuring at all when discussing price. They based it on the local market and houses that were similar in size. 

 My EA did measure, they sent a person to measure rooms and draw a floor plan. How can you tell your house is a similar size without measuring? 3 bedroom house can be +/- 30 sq m and can be 100k difference in my area. Of course other factors matter but I am looking at 3 streets where everyone has the same parking and gardens. 

The price for my house was based on the local sold prices of houses similar in size, layout and condition. Luckily my house is a cookie cutter and we had a few sold in the area recently. The condition was taken into account. Of course I am yet to find out if it was a right approach, the viewings are still going on. 

They did measurements when taking the pictures and floorplan after I agreed the selling price it had no bearing on value. I think you are focusing too much on the sq m detail in my opinion. Yes you can use it as a guide for sizing but not to reduce by £k per sq m it just doesn't work that way. If you feel the size of the house, location, potential etc fits the bill then make an offer.

lookstraightahead

The houses round here are not based on floor size at all. There are properties twice the size for the same price. Or 3 bed £350000, 2 bed £265000 but two bed is bigger.
Also I thinks 'done up' is subjective as I recently saw a house which had new everything but I hated it. I would check boiler etc.
also think about what the mortgage valuation might be based on. 

btcp

Irishpearce26 said:

 I think you are focusing too much on the sq m detail in my opinion. Yes you can use it as a guide for sizing but not to reduce by £k per sq m it just doesn't work that way. If you feel the size of the house, location, potential etc fits the bill then make an offer.

I am focusing on sq m and condition, because all other factors are the same for the houses sold nearby. Location, parking, garden size, year built, proximity to places - all the same. It leaves me with the size of the house and it's condition. If the house is the same size but in better condition, surely it should cost more and vice versa? 

pinkpiglit

btcp said:

I am focusing on sq m and condition, because all other factors are the same for the houses sold nearby. Location, parking, garden size, year built, proximity to places - all the same. It leaves me with the size of the house and it's condition. If the house is the same size but in better condition, surely it should cost more and vice versa? 

Well if that is what you are focusing on, go ahead and offer whatever you want to pay.  

No one on here can really advise what to offer as they are not the ones buying the property.  At the end of the day, the seller is only going to accept what THEY think the property is worth.....