Location vs. property state - purchase offer accepted

maximise

Really keen to hear your experiences on choosing property, firstly I'm very lucky to have found a house that I like, however with prices dropping I thought I'd found a house that ticked the most boxes at the time, since have seen one or two that come close but now Property B has had its price reduced significantly:

Property A
house is an 8.5 out of 10 for the price (needs basic maintenance, cosmetics here and there)
location is 8 out of 10 - good area, out of town, so popular it can get a little bit congested 

Property B - was 25k more than A, now dropped 50k, so £25k less than A.
house is 7.5 out of 10 for price (needs modernising, all over)
location is 9.5 out of 10 - nice area, other end of town, more relaxed vibe




Maybe this will help to answer my own question, it feels like asking here, is the right thing to do.

I've viewed over a dozen freehold houses in a specific England town area (focused on 2 mile radius).


Purchase offer accepted on Property A a few weeks ago - this house ticked enough boxes to make an offer on, south-facing garden and it's in a nice cul de sac area, surrounded by more expensive properties, the area is probably over a decade old new build community.

My initial offer was a bit lower than asking, but felt the asking price was spot on good value, so a best and final offer was made in this region and it was accepted.



2 weeks later I'm now seeing a lot of properties with price drops. None have really taken me as I've been able to quickly rule them out, due to price, location or property layout, until now enter Property B - I'd previously ruled out for being priced over budget.


It's not the perfect property but has real long-term potential, detached bungalow, it's basically an older property (1970s) that's been well-looked after by pensioners, no en-suite, no conservatory like Property A. The main attraction is the area, it's ideal I like the relaxed feel, and is less congested, it's on the edge of town with fields nearby, and it's slightly closer to work for commute.




pros:
- it's lower priced than 'property A' (more budget for modernisation)
- it's in a slightly more preferred area for me personally - I've always liked this area it's higher up and light and breezy.
- huge rear garden south-east facing (can be extended), at least 1 more parking space, overall land area is larger (better value).
-other properties in area have sold for a lot more in 2021, 2022.

cons
- needs modernising and potentially an extension, as it's smaller inside, a few neighbouring houses have extended, this would bring it up to the same floor space but at what cost (how much would a 6x3m extension cost, 50k?)

was thinking about getting a lodger, property A is ready to go whereas property B could need work to achieve this.


Could easily see myself living in either, but feel like the location of property B is where I'd like to be in the long-term, now it's entering my thoughts daily, I've done a quick sketch up of the floorplan and plot to compare. Do I stick with A and live there for 3 years+ then look at area B, or do I risk changing to B.

My immediate thought is to view property B but I'm reluctant to because both are with the same estate agent.


Look forward to hearing from you particularly if you've had a similar experience.

gwynlas

The EA works for the sellers so needs to satisfy both to earn their commission so it makes little difference to them which house you purchase unless one holds much more appeal to a wider pool of buyers. You will not be happy if you lose the opportunity to buy at prefered location and there might be unseen issues that focuses your mind on the first. Just go ahead and arrange a viewing you are spending a large sum of hard earned cash and need to feel that you have made the best decision possible. Have not been in this position personally but have had experience with both good and bad EAs previously

housebuyer143

Location always for me. You can't move a house, but you can do improvement works. 

FreeBear

maximise said: cons
- needs modernising and potentially an extension, as it's smaller inside, a few neighbouring houses have extended, this would bring it up to the same floor space but at what cost (how much would a 6x3m extension cost, 50k?)

What sort of work does it need to "modernise" ?

Tired decor is fairly cheap and quick to do, but if electrics, kitchen, and bathroom need doing, that could eat up a big chunk of money. That said, bathrooms, even with 1970s fittings are quite usable. Kitchens can also be given a make-over quite cheaply (new worktop & replacement door/draw fronts).

It used to be a case extensions could be done for £1500 to £2000 per square metre. Prices have gone up, and the ballpark is now around £3000 to £4000 - I'd budget £75K for a water tight shell plus another £25K for finishing. That should give you a comfortable cushion if there are any unexpected cost overruns.

By the sounds of it, you are having second thoughts about property A, so go and have a look at B - It may be that the condition of B puts you off (estate agents are very good at leaving out the ugly photos). Also look at the long term housing plans from the council. Your open fields may turn in to a huge estate of rabbit hutches. The house I'm currently in used to overlook sports grounds and open fields with a few houses in the distance (50 years ago). I now have to go out a couple of miles for the open fields, and with a new bypass built, even more land has been earmarked for housing.

UnderOffer

Location definitely preferred. You can modernise in stages and know that if you have to sell at a future date, the location will hopefully still be desirable giving you an advantage to other similar properties on the market. 

jonnydeppiwish!

Location. For me, that’s the ultimate deciding vote.

BobT36

Unless you're super poor or always likely to be... Well, you can change the house, you can't change the location.. 

Obv need to actually view the second one to say.