First time buyers deciding how to renegotiate after survey

Herzlos

Not really, it sounds like they picked a reasonable value at the time and then dropped it. 

No matter how good value a house is, a lot of buyers aren't going to want to buy and then immediatelly take on such a massive renovation. It could be that the house could easily fetch £400k if the seller did the extension, or it could be that it'd still struggle to fetch £250k. 

We don't know. 

alien_pebble

Thanks everyone who has commented so far! We know it’s such a huge decision. 

It’s worth noting that the valuation from the lender came back at the asking price of £295k and for reference, other similar  properties have gone for around £270- £290k in the past 3 years. Also worth noting is that there is a house up for sale 4 doors down that has a loft conversion and has been done up (cheaply) but it’s still got a brand new kitchen. This is on the market for £340k same bedrooms and main layout but has additional extended space very done up.

So I also understand when people say that the condition could be tied into the price but I believe to get our house up to the same standard it would cost over £45k. 

Also, I have close family members who are architect and joiner who seem to be confident that we can live in till we’re ready and much of the work can be done ‘diy’. They are of the opinion that because of the location of the property that it is still a good deal despite the work. 

I think as we are first time buyers we don’t have the experience or knowledge and we want to make as informed and well thought out decision as we can.  

Albermarle

Even when you are not FTBs, there is no magic solution to finding the exact right price level.
There are many competing factors ( and options at play.

I am not an expert and have obviously not seen the property, but the kitchen does not sound like a DIY job. All the walls will have to come down and be rebuilt. The foundations may well be inadequate as well.
It may well otherwise be a good house in a good location and maybe even not a bad price, but if you do take it on it would be best to bite the bullet and not try and tart up the kitchen on the cheap.

Wicks

We bought a house with a single brick kitchen extension done by the previous owner in the 1970s.
We lived with it a few years to save up for the demolition and rebuild but every cupboard that was on an external wall ( 3 out of 4 ) was cold so could really tell in the colder weather.

For us the demolition and structural build came to over £80K in 2023, in the Midlands.  Fitout / Kitchen is extra

Albermarle

Wicks said:

We bought a house with a single brick kitchen extension done by the previous owner in the 1970s.
We lived with it a few years to save up for the demolition and rebuild but every cupboard that was on an external wall ( 3 out of 4 ) was cold so could really tell in the colder weather.

For us the demolition and structural build came to over £80K in 2023, in the Midlands.  Fitout / Kitchen is extra

I have some friends in the Midlands who are in the midst of this at the moment, and their cost is also £80K - not sure exactly what is included.
However it is bigger than the OPs kitchen , which is just over 10M2.

Bluebell1000

Albermarle said:

Wicks said:

We bought a house with a single brick kitchen extension done by the previous owner in the 1970s.
We lived with it a few years to save up for the demolition and rebuild but every cupboard that was on an external wall ( 3 out of 4 ) was cold so could really tell in the colder weather.

For us the demolition and structural build came to over £80K in 2023, in the Midlands.  Fitout / Kitchen is extra

I have some friends in the Midlands who are in the midst of this at the moment, and their cost is also £80K - not sure exactly what is included.
However it is bigger than the OPs kitchen , which is just over 10M2.

We did a new open plan kitchen diner and small utility, along with some minor internal alterations downstairs and removal of conservatory, for about £40k last year, also Midlands. We did already have the kitchen units and appliances though.

Herzlos

alien_pebble said:

Also, I have close family members who are architect and joiner who seem to be confident that we can live in till we’re ready and much of the work can be done ‘diy’. They are of the opinion that because of the location of the property that it is still a good deal despite the work. 

I think this is the important part. Actual experts you trust that have presumably seen the work, will have much better opinions than folk on the internet. 

How much of a reduction you can get away with will depend on the seller, though the estate agent might be able to give you some indication. I'd be starting with the £45-50k estimate to do the work and see if they'll meet you somewhere in the middle. If it's priced to account for the work they'll be reluctant to reduce the price much at all. From their perspective they've already lost a fortune. 

youth_leader

Good luck, I hope your business negotiations go well. 

My daughter and her boyfriend are in NI and really loved a house ... but single skinned double extension.  They had a survey that highlighted the extension and advised a structural surveyor.   He said there was severe water ingress and all of the MDF vinyl covered kitchen was mush, and not to continue with the purchase.  

ReadySteadyPop

Herzlos said:

Not really, it sounds like they picked a reasonable value at the time and then dropped it. 

No matter how good value a house is, a lot of buyers aren't going to want to buy and then immediatelly take on such a massive renovation. It could be that the house could easily fetch £400k if the seller did the extension, or it could be that it'd still struggle to fetch £250k. 

We don't know. 

We do know that they dropped the price by 50k, and it is generally acknowledged that extensions etc. don"t add much value, they can actually reduce value if potential buyers don`t like the work!

WIAWSNB

At what prices did the two sales fall through - the original far-too-high, or the more reasonable current?
Only you can decide if it's worth it, depending on how it compares with other properties you've looked at - ie, how much do you prefer this one, and would be happier in? After 10 or so years, that is surely all that will really matter?
So, this extension is not only single skin, but timber construction?! Not brick or block? Lawdie. Does it at least have a proper foundation a new wall can be built up from, or does it even need this?!
If not, then I suggest this extension is completely valueless - it'll cost more to demolish and rebuild this than it would to build a new one from scratch. So, perhaps value the place accordingly?
Had it been block or brick, and not falling down, then it could simply be tanked on the inside, and 3" of insulated plasterboard stuck on - sorted. New roof, less than £10k. But if it's rotten timber, then you have no starting point, plus the cost of demolition.