Sell and move or renovate 🤔

Mustlovedogs

So attempts to part ex with a developer have failed. For context an independent valuation advised us to market for £360000, stated was worth a bit more but houses in our area aren't selling above 360. A developer offered us 305, then 315 when we said too low. So we have walked away. 
We now have to decide whether to sell, getting another valuation to check. OR. Renovate our downstairs (reason i want to move is I hate the layout, the builder did not make the best use of space and I also want a utility. Renovating would mean adding to our current mortgage. I'm not sure that spending probably tens of thousands to renovate would add any value. So I'm wondering which option would make more financial sense....any constructive opinions welcome :-)

Hoenir

You may be surprised how much remodelling the downstairs will cost. We had the same thought a couple of years ago. Decided ultimately it was to better to move to a property that better fitted our wants. 

GDB2222

Bear in mind that, if you move, you will have some costs.  As a rough estimate 

Estate agent £5k
SDLT £8k
Solicitor £5k
Removals £2k

So, you are down £20k, and that’s before you find that you simply have to replace the kitchen in the new house…

Mustlovedogs

Hoenir said:

You may be surprised how much remodelling the downstairs will cost. We had the same thought a couple of years ago. Decided ultimately it was to better to move to a property that better fitted our wants. 

This is my thinking too....

Stubod

If you like the area you are in, and the size of your current house is OK, it may well be better to spend your money on making your current house fit your needs?? You could spend months looking and still not find your "ideal" house?

Albermarle

Maybe watching a few episodes of this will help you to decide !

Watch Kirstie and Phil's Love It or List It | Stream free on Channel 4

RelievedSheff

Mustlovedogs said:

So attempts to part ex with a developer have failed. For context an independent valuation advised us to market for £360000, stated was worth a bit more but houses in our area aren't selling above 360. A developer offered us 305, then 315 when we said too low. So we have walked away. 
We now have to decide whether to sell, getting another valuation to check. OR. Renovate our downstairs (reason i want to move is I hate the layout, the builder did not make the best use of space and I also want a utility. Renovating would mean adding to our current mortgage. I'm not sure that spending probably tens of thousands to renovate would add any value. So I'm wondering which option would make more financial sense....any constructive opinions welcome :-)

The offer made by the developer is probably a fair offer based on your comments about slow property sales in the area.

This is one of the terms and conditions from the part exchange deal we agreed:

"Any offer made to purchase your existing property will be at fair value and will be based on a presumed sale of within 8 to 10 weeks. Our offer will be subject to a RICS survey and an independent valuation."

The developers don't want these properties hanging around not selling. They buy them and price them to sell them on quickly.

We received 90% market value for our old house and they sold it very quickly for the same price (was put on the market Friday morning and sold by Monday afternoon after 6 viewings)

GDB2222

RelievedSheff said:

Mustlovedogs said:

So attempts to part ex with a developer have failed. For context an independent valuation advised us to market for £360000, stated was worth a bit more but houses in our area aren't selling above 360. A developer offered us 305, then 315 when we said too low. So we have walked away. 
We now have to decide whether to sell, getting another valuation to check. OR. Renovate our downstairs (reason i want to move is I hate the layout, the builder did not make the best use of space and I also want a utility. Renovating would mean adding to our current mortgage. I'm not sure that spending probably tens of thousands to renovate would add any value. So I'm wondering which option would make more financial sense....any constructive opinions welcome :-)

The offer made by the developer is probably a fair offer based on your comments about slow property sales in the area.

This is one of the terms and conditions from the part exchange deal we agreed:

"Any offer made to purchase your existing property will be at fair value and will be based on a presumed sale of within 8 to 10 weeks. Our offer will be subject to a RICS survey and an independent valuation."

The developers don't want these properties hanging around not selling. They buy them and price them to sell them on quickly.

We received 90% market value for our old house and they sold it very quickly for the same price (was put on the market Friday morning and sold by Monday afternoon after 6 viewings)

Most properties will sell pretty quickly if priced 10% below market value. Were you getting a fantastic deal on your purchase, to make this worthwhile?

Mustlovedogs

RelievedSheff said:

Mustlovedogs said:

So attempts to part ex with a developer have failed. For context an independent valuation advised us to market for £360000, stated was worth a bit more but houses in our area aren't selling above 360. A developer offered us 305, then 315 when we said too low. So we have walked away. 
We now have to decide whether to sell, getting another valuation to check. OR. Renovate our downstairs (reason i want to move is I hate the layout, the builder did not make the best use of space and I also want a utility. Renovating would mean adding to our current mortgage. I'm not sure that spending probably tens of thousands to renovate would add any value. So I'm wondering which option would make more financial sense....any constructive opinions welcome :-)

The offer made by the developer is probably a fair offer based on your comments about slow property sales in the area.

This is one of the terms and conditions from the part exchange deal we agreed:

"Any offer made to purchase your existing property will be at fair value and will be based on a presumed sale of within 8 to 10 weeks. Our offer will be subject to a RICS survey and an independent valuation."

The developers don't want these properties hanging around not selling. They buy them and price them to sell them on quickly.

We received 90% market value for our old house and they sold it very quickly for the same price (was put on the market Friday morning and sold by Monday afternoon after 6 viewings)

Thanks, I'm aware of this. But 55k under market value is not a fair offer and properties aren't slow to sell, they just aren't selling at the higher price. This makes no sense because it's unlikely the developer will sell at an even higher price. If I was offered 90% market value I'd have been perfectly happy glad it worked out for you