How much to offer on property which needs complete refurbishment

sonub4ualt

powerful_Rogue said:

sonub4ualt said:

powerful_Rogue said:

sonub4ualt said:

powerful_Rogue said:

sonub4ualt said:

powerful_Rogue said:

Sounds like it was priced to take into account the work that needs doing.

Yes, but the repair costs have drastically gone up with the recent stamp duty exemption period. Also the prices quoted are for cosmetic repairs which were visible during our appointment, structural survey would satisfy what needs repairing and how critical is the damage. We do not want to just go by what the EA says, but also are mindful that anything could just crop up from nowhere once we buy and start repairing.

Are you a first time buyer by chance?

My first time house buying was smooth sailing, we were FTB and our property which we currently sold was chain free and empty. 

Ah  ok, because from the list of things you posted that 'need doing', sounds like you would be better buying a new build. You can't expect a discount because you don't like wallpaper, want new carpets, want a new bathroom etc etc.

Wallpapers are flaking in every room, carpets shaded from original texture, bathroom and toilet very old with rusty laminates. I have had a look at nearly 20 houses since Aug’21, have an idea of properties where we can move in and make changes slowly, but this is completely different. 
Hard to get appointments through EA’s who say fully booked or sold, if we get viewing outbid by cash buyers or chainfree buyers, else properties overpriced. 

So the majority of things you want a price reduction for are clearly visable and according to your original post have already semm to have been factored into the current price.

Either offer the £440k the vendor wants, or keep hunting.

I think I got the answer, massive thanks for your valuable inputs and expertise. The information shared is very precious for families with little or no knowledge of what to consider when buying/selling.
I can now make an informed decision whether to proceed or search for other properties.

Kumar

gettingtheresometime

As a guide I viewed a house which was advertised as needing renovation but in reality needed gutting.

was advertised for £175k but went for £190k. Similar houses that you just walk into & live on the same estate go for £220-£230k

sonub4ualt

Thanks @gettingtheresometime, appreciate sharing the experience. 

Doozergirl

Please don't listen to anyone telling you that £40-50k is high for a full refurb.  It isn't at all. 

And £25k is insanely low.   

Given that the house is wallpapered and not touched and you need to rewire, there's a high likelihood that the plaster will fall off the walls when you start to cut into it, at least in some areas. 

£50k is not a significant budget for a house that needs everything doing to it.    You would need to be very careful with it indeed.  

Most houses that need work will end up costing more than a 'normal' house unless you do the work yourself and don't count your own time as an expense.  It will be in better condition than a 'normal' house.  

TheJP

Doozergirl said:

Please don't listen to anyone telling you that £40-50k is high for a full refurb.  It isn't at all. 

And £25k is insanely low.   

Given that the house is wallpapered and not touched and you need to rewire, there's a high likelihood that the plaster will fall off the walls when you start to cut into it, at least in some areas. 

£50k is not a significant budget for a house that needs everything doing to it.    You would need to be very careful with it indeed.  

Most houses that need work will end up costing more than a 'normal' house unless you do the work yourself and don't count your own time as an expense.  It will be in better condition than a 'normal' house.  

The thing is the OP doesn't know for definite what needs doing to the house a lot of which seems to be cosmetic. The wiring in the house could be fine and not all walls will need re-plastering. 

Until the OP has a survey done and can start to really look at some of the areas he highlighted he wont know the true cost. Yes £25k is low but not that low if you want a new kitchen, bathroom and to decorate. It can be done.

Doozergirl

TheJP said:

Doozergirl said:

Please don't listen to anyone telling you that £40-50k is high for a full refurb.  It isn't at all. 

And £25k is insanely low.   

Given that the house is wallpapered and not touched and you need to rewire, there's a high likelihood that the plaster will fall off the walls when you start to cut into it, at least in some areas. 

£50k is not a significant budget for a house that needs everything doing to it.    You would need to be very careful with it indeed.  

Most houses that need work will end up costing more than a 'normal' house unless you do the work yourself and don't count your own time as an expense.  It will be in better condition than a 'normal' house.  

The thing is the OP doesn't know for definite what needs doing to the house a lot of which seems to be cosmetic. The wiring in the house could be fine and not all walls will need re-plastering. 

Until the OP has a survey done and can start to really look at some of the areas he highlighted he wont know the true cost. Yes £25k is low but not that low if you want a new kitchen, bathroom and to decorate. It can be done.

What the OP is talking about is not cosmetic. You even quoted them, and at no point did you suggest it mightn't be that bad.   It's always that bad.  They're already talking about rewiring, new radiators, pipework and a new roof.   You've eaten much of £25k with just that and none of it is cosmetic, plus the  aftermath of that needs to be dealt with.  A survey won't even tell them if the plaster is likely to fall off the walls, but experience tells me.  

Most people would be happy to pull in just a kitchen and two bathrooms for £25k if you have any kind of expectation from them, especially in an old house.  

I know old houses and I know old
houses that have barely been touched in 40 years.  If the cosmetic is bad, the upkeep is worse.  No house is 'priced accordingly' for cosmetic touches.  

babyblade41

wish I could have done even a partial refurb for 25k  and the bathroom got left before putting onto the market as the budget I'd put aside was 75k.

It's the hidden sundries that cost as well... plus the finishing.. pulled one lot of plaster off and the ceiling fell down !!

Slithery

Listen to Doozer, she's knows what she's talking about.
£50k sounds like an OK estimate, but it could end up being much higher.

Loza2016

Don’t underestimate the time and cost it takes for renovating a property that’s not been touched for years. 

I bought a property December 2020 and still not moved in. We are looking at spending probably 40k above our initial budget. 

This is despite us being in the trade and paying cost price for materials and doing much of the labour ourselves. 

We will be lucky to make a profit on the property by the time we’ve finished. 

Not to mention the stress that goes with it. 

FreeBear

Loza2016 said: Don’t underestimate the time and cost it takes for renovating a property that’s not been touched for years.

Have been waiting over a month for the window guy to measure up the last few windows that need replacing. One year on, I still haven't got anyone to commit to replacing the roof (at a price I'm prepared to pay).

As for the OPs budget, I'm with Doozergirl - £40-50K will quickly disappear depending on spec. Could spend all of that on just the kitchen.

OP - Have you budgeted for new windows & doors ?

Should the walls need replastering, it would be well worth looking at getting the exterior walls insulated from the inside. And while you are making a mess, see if the floor can be lifted & insulated. Shouldn't need to say it, but insulate the loft as well - Just don't use that spray foam unless you want to seriously devalue the property.