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  • FIRST POST
    • Poniato
    • By Poniato 5th Feb 18, 9:19 PM
    • 62Posts
    • 15Thanks
    Poniato
    Buying ex-council house
    • #1
    • 5th Feb 18, 9:19 PM
    Buying ex-council house 5th Feb 18 at 9:19 PM
    Hello,

    I have viewed a lovely ex-council house recently. House price is 125k. On that area 50% are council and 50% are normal private property owners. Of course, I have put an offer 5% less than asking price. I had a call from agency today. They said that there is a quite big interesting of that house and they asked about putting my final offer. Now, my question is. If there are few other people which want put offers on that house, how much I should put? Has anyone had a similar situation? 125k is enough? If I really want to buy it I should put go above that 125k? If so, how much above this price I should to put to buy it. I know that nobody knows an answer to that question, but maybe someone has more experience in this circumstances than me. Also, is that good idea to buy an ex-council house?

    Cheers
    Last edited by Poniato; 05-02-2018 at 9:22 PM.
Page 1
    • hazyjo
    • By hazyjo 5th Feb 18, 9:24 PM
    • 10,633 Posts
    • 13,896 Thanks
    hazyjo
    • #2
    • 5th Feb 18, 9:24 PM
    • #2
    • 5th Feb 18, 9:24 PM
    They're playing you. Where are the other offers? Don't bid against yourself. The valuer will possibly down-value it if you pay on or over the asking price.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • Poniato
    • By Poniato 5th Feb 18, 9:39 PM
    • 62 Posts
    • 15 Thanks
    Poniato
    • #3
    • 5th Feb 18, 9:39 PM
    • #3
    • 5th Feb 18, 9:39 PM
    Hi hazyjo,

    The estate agent said that they have been few other offers and all people will put their final offer next week. When we viewed the house we have seen at least 3 other couple, who viewed property at the same time, so I think the property will be quite popular. I am wondering if people ever put an offer on house more than asking price ??We really like this house.

    What do you mean by saying 'The valuer will possibly down-value it if you pay on or over the asking price.' ??
    • troffasky
    • By troffasky 5th Feb 18, 10:10 PM
    • 70 Posts
    • 41 Thanks
    troffasky
    • #4
    • 5th Feb 18, 10:10 PM
    • #4
    • 5th Feb 18, 10:10 PM
    Hazyjo has assumed you would use a mortgage to buy it, and as part of that process, the bank will send somebody to look at the property and decide if it's worth you're [they're] paying for it. If the valuer doesn't agree, the bank won't let you the entire figure and you'll have to come up with the difference yourself.

    It sounds like you need to do a little more research on this home-buying thing. Start by lurking in here and reading a few threads started by fellow FTBs.
    • hazyjo
    • By hazyjo 5th Feb 18, 10:49 PM
    • 10,633 Posts
    • 13,896 Thanks
    hazyjo
    • #5
    • 5th Feb 18, 10:49 PM
    • #5
    • 5th Feb 18, 10:49 PM
    Yes people can and do offer more. Depends if it's been realistically priced and what the local market's doing. Up to you to compare against other similar sold properties in the area. In your shoes, if a non-ex-council house was cheaper, I'd go for that.

    Again, depends on the area and various other factors if it's a good idea to buy council properties. Generally - not always - they will be cheaper than others, although they're often roomy and solidly built. Again, I'm generalising.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • JoJo1978
    • By JoJo1978 5th Feb 18, 10:59 PM
    • 350 Posts
    • 429 Thanks
    JoJo1978
    • #6
    • 5th Feb 18, 10:59 PM
    • #6
    • 5th Feb 18, 10:59 PM
    We bought and ex council house in 2008 and sold it last year after paying the mortgage off. Also 50:50 tenants/owners on our street. Our experience is that because ex LA houses tend to be older they are often larger and better proportioned than new builds.

    Are you purchasing directly from the council or from a previous private owner? The latter may mean that the property has had renovation and improvements more recently, but not necessarily.

    I agree you need to be careful not to pay over asking for the reasons other posters have mentioned. Don't ask a forum what your max price should be, you need to work that out for yourself based on your finances and stick firmly to it.

    Ex LA properties may have a 'ceiling' in terms of the max price they will fetch at resale, often due to their location. That might affect how much money you pour into the property in terms of improvements. We didn't put in a very posh kitchen or bathroom before we sold, for example, because we would not have got the money back in terms of a higher sale price.
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Part-time gigger and charity volunteer 2018
    • Mr.Generous
    • By Mr.Generous 5th Feb 18, 11:04 PM
    • 1,763 Posts
    • 2,658 Thanks
    Mr.Generous
    • #7
    • 5th Feb 18, 11:04 PM
    • #7
    • 5th Feb 18, 11:04 PM
    Offer a value somewhere about what you think it is worth and what you hope you can get it for. I have recently been looking at a former council house for sale where my offer of 82k was turned down flat, the vendor saying they won't accept any offer below 88k as they have already reduced the asking price. I increased my offer to 83k and stated it was my best and final offer. It was declined. 2 days later I got a call asking if I could go a little higher. No, final offer, I am looking at other properties. Call back same day saying offer accepted.

    Sometimes you have to hold your nerve. 5k will go a long way towards a decent renovation. The agents will try and persuade the buyer to go higher to get a sale and the seller to go lower, they only get paid on done deals.
    • Poniato
    • By Poniato 6th Feb 18, 8:01 PM
    • 62 Posts
    • 15 Thanks
    Poniato
    • #8
    • 6th Feb 18, 8:01 PM
    • #8
    • 6th Feb 18, 8:01 PM
    We have just found out that this house is a spooner non-standard house. I don't have any idea what does it mean, but that's nothing good. Does anyone here have any experience with these kinds of houses?
    • JoJo1978
    • By JoJo1978 6th Feb 18, 8:18 PM
    • 350 Posts
    • 429 Thanks
    JoJo1978
    • #9
    • 6th Feb 18, 8:18 PM
    • #9
    • 6th Feb 18, 8:18 PM
    Poniato, Spooner is the name of a type of building construction that falls into the 'non standard' category. There will be a smaller pool of available lenders from which you can get a mortgage in all likelihood, although there are some institutions that specialise in non standard. There can be a stigma attached, for example, our buyer wouldn't proceed until he was satisfied our house was brick and not concrete prefabricated. Its not necessarily an issue depending on your needs and future uses for the property but do some research first.
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Part-time gigger and charity volunteer 2018
    • hammy1988
    • By hammy1988 6th Feb 18, 8:19 PM
    • 135 Posts
    • 88 Thanks
    hammy1988
    Our first time buy in 2012 was an ex council house. Solid sturdy and roomy in each room, nothing needed fixing as previous owner was deceased. Made 20k on the sale 5 years later and then sold on to another First time buyer. We never regretted our sale at all.
    • NicNicP
    • By NicNicP 6th Feb 18, 9:00 PM
    • 232 Posts
    • 129 Thanks
    NicNicP
    We bought an ex council house on an estate that still had council owned properties on it. When we sold we got the full asking price within 24 hours. Because they!!!8217;re affordable they tend to sell quickly in their our area, and near to if not for the asking price.
    • Smodlet
    • By Smodlet 7th Feb 18, 8:24 AM
    • 3,171 Posts
    • 6,291 Thanks
    Smodlet
    You don't say what you want to use the house for, OP. If you want to live in it long-term its being non-standard construction may be more of an issue than if you want to rent it out. As mentioned above, there are several types of non-standard housing, though most of them are concrete. As far as I know, the worst ones from a maintenance point of view are the ones built on a metal frame as this can rust, buckle and conceivably bring the whole lot down with it. If you can see rust stains on the outside of the house, I would walk away now.

    It might be an idea to get a building survey done but these are not cheap on non-standard construction houses. I think, if you go up into the loft and look at the rafters and they are metal, that is the metal-framed kind of house. Personally, I would not touch one of those with a barge pole.

    There are other kinds where the concrete is poured into wooden shuttering (tall, thin boxes, basically) which have fewer issues because there is less or no metal involved.

    Again, as mentioned, it is usually more difficult to get a mortgage on non-standard properties. There may also be issues with buildings insurance, or there may not. There may be high maintenance costs down the line, or there may not.

    Do not take this as gospel as I am going from memory of a conversation I had with a surveyor several years ago. Do your own research. HTH.

    ETA: Just found this link which might be useful - Mods, it is not intended to be an advert for this firm of surveyors, OK? It is an article about non-standard housing.

    http://www.peterbarry.co.uk/blog/houses-of-non-traditional-construction-common-property-defects-6/

    Also googled "Spooner" and it seems they are the timber-framed ones, so not the worst kind of non-standard construction.
    Last edited by Smodlet; 07-02-2018 at 8:36 AM. Reason: Link, more info
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
    • Davesnave
    • By Davesnave 7th Feb 18, 8:53 AM
    • 25,299 Posts
    • 93,037 Thanks
    Davesnave
    Spooner construction is timber frame and may be mortgageable, but whether at rates you'd consider reasonable is something that you'd need to find out via a specialist broker.
    If you are finding huge gaps between your paragraphs and use Firefox, MSE know about the problem. However, they aren't necessarily doing anything about it yet....
    https://forums.moneysavingexpert.com/showthread.php?t=5844460
    • Poniato
    • By Poniato 7th Feb 18, 6:11 PM
    • 62 Posts
    • 15 Thanks
    Poniato
    Thank you, Guys! We have decided to retract our offer. It seems too much risk to buy that type of house.
    • Smodlet
    • By Smodlet 7th Feb 18, 10:32 PM
    • 3,171 Posts
    • 6,291 Thanks
    Smodlet
    Thanks for letting us know, hope we helped. You will find somewhere else.
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
    • glasgowdan
    • By glasgowdan 9th Feb 18, 10:37 AM
    • 2,895 Posts
    • 3,247 Thanks
    glasgowdan
    They're playing you. Where are the other offers? Don't bid against yourself. The valuer will possibly down-value it if you pay on or over the asking price.
    Originally posted by hazyjo
    That's really not the best advice. When we were house buying we lost out on a few houses that we were told were going to best offers on a closing date. The EA doesn't tell every buyer who else is offering, do they? We placed offers significantly over the asking prices and still lost out to highers offers.

    To the OP, you have to think for yourself. Was it hard to book a viewing? How aware were you of other viewers? You can stick to your 125 and hope that's the best offer, you can take a gamble and raise it a bit, but if you have your offer accepted, \are you going to sit and wonder if there really were other offers, or will you be perfectly happy to have the house?

    This is house buying in areas where people want to live! All quite normal.
    • hazyjo
    • By hazyjo 9th Feb 18, 12:19 PM
    • 10,633 Posts
    • 13,896 Thanks
    hazyjo
    That's really not the best advice. When we were house buying we lost out on a few houses that we were told were going to best offers on a closing date. The EA doesn't tell every buyer who else is offering, do they? We placed offers significantly over the asking prices and still lost out to highers offers.

    To the OP, you have to think for yourself. Was it hard to book a viewing? How aware were you of other viewers? You can stick to your 125 and hope that's the best offer, you can take a gamble and raise it a bit, but if you have your offer accepted, \are you going to sit and wonder if there really were other offers, or will you be perfectly happy to have the house?

    This is house buying in areas where people want to live! All quite normal.
    Originally posted by glasgowdan
    It didn't sound as though there were other offers on the table at that time. Unless there is actually an offer from any other interested party, it's all just pretend. EAs in England stretch the truth. Going to 'best offers' from several parties is very different to saying 'lots of viewers/interest but no offers'. I have always been told when there are other offers on the table. Why wouldn't they say? It's in their best interest to.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • Smodlet
    • By Smodlet 9th Feb 18, 2:15 PM
    • 3,171 Posts
    • 6,291 Thanks
    Smodlet
    It's all moot for this house as the OP has informed us they do not wish to buy a non-standard house.
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
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