Selling home - cost of renovations

houseseller35

Hi Guys,

First time poster.  We are in the process of selling our first home and have been asked to justify the hike in property value from buying the house 2 years ago to now.  On top of this, the buyer has asked our costs of renovations.  We have done a fair but to the property but wanted to know whether this is a normal question?

Appreciate any help.

Thanks

Josh

lincroft1710

You are under no obligation to justify your price or disclose your costs.


My personal reply would be "Because that's what I think it is worth and do not recall all the cost details"

Loza2016

I sold a property last year that I had extended. If my buyer had asked me how much I spent I would’ve politely told them it was none of their business. 

TripleH

Is the work you have had done cosmetic (appearance) or structural like rewiring, replastering or fix the roof?

I'd only provide appropriate details on structural work especially if there is a guarantee to it. The rest is subjective, you list at a price you belive is fair, it gets bid up or down based on other people's views.

houseseller35

TripleH said:

Is the work you have had done cosmetic (appearance) or structural like rewiring, replastering or fix the roof?

I'd only provide appropriate details on structural work especially if there is a guarantee to it. The rest is subjective, you list at a price you belive is fair, it gets bid up or down based on other people's views.

Hi

Cosmetic only. hence my reluctance to disclose my costs

[Deleted User]

Hi Josh,

I am a FTB who has just made an offer on a property that last sold in 2020. The seller is asking for around 31% more than they bought it for back then. I have offered around 26%.

From my perspective, I didn't really question the hike in price as I am aware of the market and the fact properties in the area have gone for a significant amount over asking. The price they are hoping for, while high, reflects this and is reasonable in the circumstances. Essentially, it will likely sell for what they are asking or (hopefully) what I am offering. The property market has been booming in the last couple of years so it will likely sell for a lot more than it did then. In addition, they have made some minor renovations. I haven't questioned the price of these and I don't think there is a clear cut response as to why a property would be £X when it sold for a lot less two years ago: the market changes and that is what it is worth now.

SavingPennies_2

You don't have to tell them anything, they are probably looking for reasons to justify a lower offer than you are asking. Cosmetic changes are unlikely to have made that much increase in value, more likely it's due to the general increase in prices over the last 2 years. It's up to them to decide if they want to pay, and if you house is overpriced you'll find out when the offers come in (or don't)

newsgroupmonkey_

I'd laugh if someone asked me that question.

We moved into our current property 2 years ago. It's now worth around 15-20% more than we bought it for. We've done virtually nothing to it (although we're giving it a lick of paint throughout as it needs it).

Many areas have gone up over 10% in the last year alone.

Doozergirl

That isn't normal and I speak as a former serial renovator who must have entertained hundreds of viewings over the years.  I would not answer that question.  

The only time someone came close to that, I should have sold to someone else.  He was a piece of work and tried to gazunder us on completion day, but ended up shooting himself badly in the foot as we'd exchanged contracts, lived elsewhere and he didn't actually have all the money to complete.   Karma was swift.  

The market dictates the price of a house, not me (sadly!).  You don't need to justify anything, they do.  

TripleH

I am intrigued Doozergirl, could you tell us more please?

I assume he tried via his Esate Agents as I 'would assume no conveyancer is stupid enough to entertain such a notion after exchange'

Doozergirl

TripleH said:

I am intrigued Doozergirl, could you tell us more please?

I assume he tried via his Esate Agents as I 'would assume no conveyancer is stupid enough to entertain such a notion after exchange'

Well,  I can only surmise what happened at his end, we were waiting for most of the day for word of completion.  He actually got his new wife to call my husband at about midday and ask for the keys to the house so that they could move their stuff in.   She was completely oblivious, and my husband, being ever the generous one, let her have the keys.  He didn't tell me as he knew I'd say no as I couldn't stand the man.  

It started with him telling me at a viewing after we'd accepted the offer "I know what you paid for this, so you're on a right little earner".   And then there was some attempt to knock us down after they'd won a bidding war.  

Anyway, all hell broke loose.  I called our solicitor at about 2pm and told her to find out exactly what was going on.    She called back and someone had divulged to her that he had intended to gazunder us by £12k without realising what exchange meant and he didn't actually have the full funds to complete, so he was now scrabbling around.  I presume that his intention was always to get the keys first.  

We then had to go to the house to get the keys back off them.  His new wife (they were moving in together after separating from others) was in floods of tears and her mum was standing on the front drive with helium balloons to celebrate them moving in when we got there.  He had very little to say for himself other than 'I don't see what the fuss is about, you've got most of the money'.  There was no apology, though I think it was his wife that was most deserving of one.  

Idiot.  Anyway, he had to beg, borrow and steal the money, and we did end up completing a week later with an extra payment of interest for the delayed completion.  

I felt so sorry for the woman.  She was devastated.  We let them put their stuff in the garage and they had to go and stay in a B&B?! 

I'm sure that won't happen to the OP but it isn't a good question for people to be asking.  They're doing cold maths without considering the house against the market.  I'd be wary.  If it starts bad, it never gets better.