How much to offer on property which needs complete refurbishment

Thrugelmir

sonub4ualt said:

Polarkitto said:

40-50k for refurbs sounds high, are you replacing the roof, both bathrooms, filling in fireplaces throughout, conservatory need knocking down and redoing etc?

I'd recommend you send some pictures to tradesmen regarding whatever you think needs sorting, and use those quotes to get a realistic number for repairs/refurb to start with.

If a similar house went for 433k 4 years ago, them asking for 440k now, assuming the property isn't in total disrepair, seems like a fairly good deal. 

You're also admitting on zoopla the valuation is much higher than 440k so it's hard for you to argue 10k is make or break if it's otherwise a perfect size for your family.

What SHOULD be the best offer, is entirely subjective and even then based on a top of information we don't have. Right now the best offer is the one you're being told the owners won't go below.

Rewiring
Change of Radiators and pipeworks
New bathroom upstairs
New W/C shower downstairs including plumbing
Guttering and fascias
Skirting board replacement
Plastering as it is wallpaper throughout all the upstairs
Tiling and flooring
New carpets on 1st floor
Roofing was never changed except for when it leaked minor repairs were carried out to fix them.
Whole new kitchen

No guarantees that all this spend is going to add value to the property. 

SuseOrm

sonub4ualt said:

SuseOrm said:

I had enough accepted on a house which tragically fell through in Stratford-upon-Avon August 2020 for 238 grand, Next door with less of a garden needing more work just sold for £285

Thanks @SuseOrm, how much was the property advertised for?

Offers over £225,  before it went utterly bonkers.  In my head I was planning to offer like 215 maybe get it for 220.  It was very apparent very quickly that wasn’t gonna happen.  

I was lucky because the people just wanted rid of it but what I’m hearing anecdotally Is that a lot of people in the last 3 to 6 months are putting up houses that haven’t been touched for 40 years and they’re just letting it sit there there’s actually no real pressure to sell so they will wait … hopefully and chase the market down 

SuseOrm

Rewiring
Change of Radiators and pipeworks
New bathroom upstairs
New W/C shower downstairs including plumbing
Guttering and fascias
Skirting board replacement
Plastering as it is wallpaper throughout all the upstairs
Tiling and flooring
New carpets on 1st floor
Roofing was never changed except for when it leaked minor repairs were carried out to fix
them.
Whole new kitchen

Theres absolutely no chance that’s gonna come in at 35 grand.  

I just had a message from kitchens DIY last week to tell me that they put their prices up by 10%.  

The house I’m trying to buy,  It’s kitchen is absolutely tiny but I still been quoted nine grand.  Bathroom I’ve gone for a very basic design layout etc,  £5000 And then I’ve gotta pay the plumber

theartfullodger

We've recently sold, completed, on my late brother's house in Manchester.  Apart from some bathroom refurb & a new kitchen plus central heating, hardly touched since 1971. 

I reckon it needed complete refurb including new roof etc etc.  Had I been younger I'd have thought about doing it myself. 

Valued similarly by 3 estate agents at £350k, probate at £350k. On market £350k, rapidly went to Bafo, sold and completed for £420k+ with other bids not far behind.

Now gorra pay CGT on the increase..   Oh well someone's got to help pay for Bre***it.

sonub4ualt

FreeBear said:

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.

@FreeBear thanks for the suggestion, did not take into account any change of doors or handles, locks, insulation for now. Forgot to mention the walls had thermocol layer inside when checked below the wall paper, did not check the floor for any insulation, loft insulation also has to be considered.

sonub4ualt

Thrugelmir said:

sonub4ualt said:

Polarkitto said:

40-50k for refurbs sounds high, are you replacing the roof, both bathrooms, filling in fireplaces throughout, conservatory need knocking down and redoing etc?

I'd recommend you send some pictures to tradesmen regarding whatever you think needs sorting, and use those quotes to get a realistic number for repairs/refurb to start with.

If a similar house went for 433k 4 years ago, them asking for 440k now, assuming the property isn't in total disrepair, seems like a fairly good deal. 

You're also admitting on zoopla the valuation is much higher than 440k so it's hard for you to argue 10k is make or break if it's otherwise a perfect size for your family.

What SHOULD be the best offer, is entirely subjective and even then based on a top of information we don't have. Right now the best offer is the one you're being told the owners won't go below.

Rewiring
Change of Radiators and pipeworks
New bathroom upstairs
New W/C shower downstairs including plumbing
Guttering and fascias
Skirting board replacement
Plastering as it is wallpaper throughout all the upstairs
Tiling and flooring
New carpets on 1st floor
Roofing was never changed except for when it leaked minor repairs were carried out to fix them.
Whole new kitchen

No guarantees that all this spend is going to add value to the property. 

Thanks @Thrugelmir, this will be our forever home, considering the kids complete their graduation and further studies no plans of selling. 

sonub4ualt

canaldumidi said:

sonub4ualt said:

Hi all,

We live in Birmingham and have been looking for a property nearly a year now. We have been outbid on 3 properties by either cash buyers or chain free customers.. Our current property is SSTC and hence now in chain. Thought of renting to be chainfree but have 3 kids, difficult to do school run. We are looking for a house somewhere close to both primary and secondary.

But

sonub4ualt said:

Kids and our family will move to my brothers place until the house gets to normal standard, at least the toilet and kitchen are redone.

Could that be a way out?
Are there no other more recent sales anywhere in the area for price comparison? A sale in 2018 does not really help much, but I'd expect prices to have risen a fair bit. The EA's guess of £500K when done up might be close or might be optimistic, but certainly suggests £450 in current condition is not unreasonable.

Of course, much depends on the seller's urgency (or otherwise), their need for a minimum price (eg for onward purchase, mortgage redemption etc), the amount of interest from other buyers etc.

Just got to know that a 3-bed semi-detached next door went for £410 in Sep’21.

Thrugelmir

sonub4ualt said:

Thrugelmir said:

sonub4ualt said:

Polarkitto said:

40-50k for refurbs sounds high, are you replacing the roof, both bathrooms, filling in fireplaces throughout, conservatory need knocking down and redoing etc?

I'd recommend you send some pictures to tradesmen regarding whatever you think needs sorting, and use those quotes to get a realistic number for repairs/refurb to start with.

If a similar house went for 433k 4 years ago, them asking for 440k now, assuming the property isn't in total disrepair, seems like a fairly good deal. 

You're also admitting on zoopla the valuation is much higher than 440k so it's hard for you to argue 10k is make or break if it's otherwise a perfect size for your family.

What SHOULD be the best offer, is entirely subjective and even then based on a top of information we don't have. Right now the best offer is the one you're being told the owners won't go below.

Rewiring
Change of Radiators and pipeworks
New bathroom upstairs
New W/C shower downstairs including plumbing
Guttering and fascias
Skirting board replacement
Plastering as it is wallpaper throughout all the upstairs
Tiling and flooring
New carpets on 1st floor
Roofing was never changed except for when it leaked minor repairs were carried out to fix them.
Whole new kitchen

No guarantees that all this spend is going to add value to the property. 

Thanks @Thrugelmir, this will be our forever home, considering the kids complete their graduation and further studies no plans of selling. 

That's your choice. The vendor isn't going to give a discount on their desired selling price to assist you. Some of the work may have to wait until you've got the money. 

FreeBear

sonub4ualt said: Forgot to mention the walls had thermocol layer inside when checked below the wall paper, did not check the floor for any insulation, loft insulation also has to be considered.

Thermocol - Another name for polystyrene.. If it is a layer of thermal wallpaper (4-6mm thick), it will offer little in the way of insulation. To be worthwhile, you need a minimum of 25mm, and to hit Building Regulation targets, perhaps as much as 100mm depending on material.

Loft insulation is cheap and is something that an average person can do themselves. Keep an eye open for offers from the likes of Wickes & B&Q, and you can save a few pounds.

CruisingSaver

I agree with others who say don’t underestimate the cost of refurbishment. We’re just about to start our refurb and we won’t see much change from £75k and that’s in NW England!