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Rundown house - what is a sensible offer?

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  • Rundown house - what is a sensible offer?

    Me and my partner have just been to view a house and are really interested in putting in an offer. The guy has not yet put the house on the market and said if the price is right then he willing to sell. He said he has received an idea from an estate agent of how much it is worth but he would not say how much.

    The house needs:

    new windows throughout
    full re-wire
    central heating system
    full new kitchen (had a flood and kitchen has never been replaced properly) it is quite a large kitchen
    full new bathroom (no bath - only shower cubicle) (separate WC)
    carpets
    plastering in some rooms (few holes here and there)
    gardens gutting

    The house is in a quiet area, it is 3 bedroom terraced house. Looks like there is no damp from 1st inspection and structural design looks to be OK, but obviously this is only from 1st inspection.

    There is a house for sale on the street for £89,950. Again 3 bedrooms looks quite nice from outside, has had new windows, bathroom is OK. No further pictures.

    Previous street sales: 2 sold in 2010 - £90,000 and £42,860. No further info on these house available besides they are both terraced house.

    We have no clue what to offer and was looking for some extra opinions. What would you offer? Need to know anything further, just ask.

  • #2
    Re: Rundown house - what is a sensible offer?

    Hi Hayley

    Before I get too deeply into this can I just ask how you found out about the house if it's not on the market yet? Is the bloke a friend of yours?

    Comment


    • #3
      Re: Rundown house - what is a sensible offer?

      Have you found out what he wants to do with the money you give him ? Does he want to buy another house with it, is he going to rent, is he going to put the money in the bank. I always find that knowing what reason the person is selling the house for will give me more of a clue as to what offer I can make.

      Also can he be flexible with the payment time e.g. will he agree to take some of the money now and some later when you sell the house / remortgage so that you have to put less / no money into the deal now.

      Don't forget you can always raise your offer but you will find it much harder to lower it.
      Adam Long

      www.quickhomeseller.co.uk

      Comment


      • #4
        Re: Rundown house - what is a sensible offer?

        Originally posted by Adam Long View Post
        Don't forget you can always raise your offer but you will find it much harder to lower it.
        Great advice from Adam this, always start low and decie on the maximum before you start.

        To add a a little more to the above responses.....

        From what you have said it sounds as if you are looking to buy the house to live in rather than to develop and sell on at a profit. If so then you need to calculate what the value of the house is likely to be after the renovations are completed and deduct the cost of the work that is required. This way you will arrive at what is a fair purchase price that will leave you owning a house that is worth what you have paid for it after you have spent out for renovations.

        i.e. it seems from your research that the house may be worth £85,000 - £90,000 in a good condition (although be wary of research regarding previous sale prices, it's not a foolproof method of valuing a house nearby and it may be worth getting a professional opinion on that). If that was correct and the estimated renovation costs are £20,000, for example, then you wouldn't want to be paying more than £65,000 - £70,000 at the very most, otherwise you may as well buy the one along the street that is on the market for £89,950 and not have the hassle of getting the work done, in fact ideally you should get the property a little cheaper to compensate for the effort in getting the place up to scratch.

        Also, you mention that the kitchen was flooded. Was this due to a burst pipe, or is there a problem with this property being in a flood risk area, could it happen again?
        ____________________________________________
        Property for sale in Torquay

        www.thomasdobner.co.uk

        Comment

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