Cheeky offer

gazfocus

I don’t agree that houses are always priced with their current condition in mind. A house we recently viewed was around the same price of other similar sized, better condition houses in the same area. On viewing the house, without even looking at the ‘modernisation’ needed, it needed a new roof, new windows and doors (the window frames were rotten, and two windows smashed), needed new central heating and a complete rewire. Not to mention a new kitchen and bathroom. We calculated that we’d need to knock £45k off just for the above (the house was on at £145k), so we decided to not even offer. 

No way had the house been valued with the above urgent repairs taken into account. 

Noneforit999

What does a complete overhaul entail?

Repainting and replacing flooring?
Plastering walls once the woodchip wallpaper comes off?
Kitchen?
Bathroom?

With costs being as they are, I would be wary of paying decent money for something which needed lots of work.

To me, redecorating and re flooring throughout are part and parcel but having to replace the kitchen or bathroom, I would have to factor this into the cost and offer accordingly. 

lookstraightahead

gazfocus said:

I don’t agree that houses are always priced with their current condition in mind. A house we recently viewed was around the same price of other similar sized, better condition houses in the same area. On viewing the house, without even looking at the ‘modernisation’ needed, it needed a new roof, new windows and doors (the window frames were rotten, and two windows smashed), needed new central heating and a complete rewire. Not to mention a new kitchen and bathroom. We calculated that we’d need to knock £45k off just for the above (the house was on at £145k), so we decided to not even offer. 

No way had the house been valued with the above urgent repairs taken into account. 

I believe a house is usually valued based on what the seller 'wants'. I've even been asked that by an estate agent. Total pie in the sky as far as the house is concerned.

mi-key

gazfocus said:

I don’t agree that houses are always priced with their current condition in mind. A house we recently viewed was around the same price of other similar sized, better condition houses in the same area. On viewing the house, without even looking at the ‘modernisation’ needed, it needed a new roof, new windows and doors (the window frames were rotten, and two windows smashed), needed new central heating and a complete rewire. Not to mention a new kitchen and bathroom. We calculated that we’d need to knock £45k off just for the above (the house was on at £145k), so we decided to not even offer. 

No way had the house been valued with the above urgent repairs taken into account. 

It could be the seller had instructed the agent to list it at that price despite their valuation. It is pretty unusual for a house that needs major repair work to not be valued taking this into account.

However, a house that is generally all fine structurally, but just old fashioned isn't listed at what it would be worth if it was completely modernised, had a new kitchen and bathroom fitted and new central heating, so there is no reason to offer taking into account the future costs of this. Decoration and bathroom and kitchen style are all personal preferences.

A lot can depend on the buyer too. Someone in their 60s buying a traditional style house may prefer a more traditional look and not want tacky grey laminate flooring everywhere and everything painted white and grey and 'live, laugh, love' wall decorations !

prowla

Depends whether the vendors have a cheeky sense of humour.

mi-key

prowla said:

Depends whether the vendors have a cheeky sense of humour.

They would need to :

lookstraightahead

mi-key said:

prowla said:

Depends whether the vendors have a cheeky sense of humour.

They would need to :

Most vendors must have a wild sense of humour at the moment judging at the hysterical listing prices at present. They also must have had a good old chortle when buyers actually went ahead and bought at those prices recently.

it's not so funny now though and people are now questioning whether it's real or just a mirage. The joke has worn off.

it's probably a 10% reduction in the 'real' value of the property.

caprikid1

At the end of the day house prices overall are 100% linked to what banks will lend against them, there is not enough property bought for cash to distort the market to a great extent, somewhere in the chain there are always a high percentage of buyers borrowing money. It is therefore the banks and valuers who in reality set house prices. Estate agents merely suggest what they think is achievable. 

The challenge with a cheeky offer is can you be taken seriously, probate properties are notoriously the worst along with separating couples to buy, you will always get one party focused on maximising their personal return or maximising the inconvenience to the other person. Many fixer uppers are more suited to auction but sellers know the price achieved is likely to be less so they try the high street first.

If you want a fixer upper at a bargain price do your research and go to auction.

zoemk12

Morning

i can’t really comment on structural or major work until after tomorrow at least. We don’t know if it needs a new boiler, rewire etc. 

It needs new windows, has an avocado bathroom, the kitchen is half out and then rest needs to follow. It has the standard falling down lean to conservatory that needs to go. The garden is a mess and we wonder if the garage has asbestos. However, the rest is cosmetic, as you say strip the walls and reskim. We’d also make some internal layout changes- which I know is a choice thing. It also has an old 2 bar heater in the lounge so we’d need that come out. We’d render outside maybe. 

Can’t comment on internal doors, skirtings etc. 

At this stage we would not extend, although we’d replace the lean to with some sort of glass structure. We might eventually add a dormer to create a new master in the loft but not factoring in that with current view of price or costs of renovation. 

And no we don’t want Grey flooring and live, laugh, love signs but I tend not to look down my nose at petiole who do- it’s all personal choice! 

mi-key

caprikid1 said:

At the end of the day house prices overall are 100% linked to what banks will lend against them, there is not enough property bought for cash to distort the market to a great extent, somewhere in the chain there are always a high percentage of buyers borrowing money. It is therefore the banks and valuers who in reality set house prices. Estate agents merely suggest what they think is achievable. 

The challenge with a cheeky offer is can you be taken seriously, probate properties are notoriously the worst along with separating couples to buy, you will always get one party focused on maximising their personal return or maximising the inconvenience to the other person. Many fixer uppers are more suited to auction but sellers know the price achieved is likely to be less so they try the high street first.

If you want a fixer upper at a bargain price do your research and go to auction.

Lender valuations are meaningless unless you are stretching yourself to the limit to buy somewhere. For most people who have a decent deposit to put down from their own sale, they don't make any difference