Making an offer on a house
Discussion
Current situation, seen a house for sale.
Been repossessed by bank from current owner who divided into 6 seperate flats\bedsits on 1st and 2nd floor.
History of property
- Sold Jan 2003 for £185k
- Sold Jan 2005 for £310k
Been marketed by agents for £199k, had offer on table for £185k but buyer withdrew last week. Estimate around £30-50k work to turn back into house. Area that it is located is ok, sales seem to have stalled though.
What would you think a reasonable offer for the property would be? I'm thinking of around offering £150k - £160k considering amount of work needed. Too much, too little?
Not planing as investment more of live in for next 10-15yrs. Work would be done slowly but alot of house for price, large victorian terrace.
All advice welcome
Been repossessed by bank from current owner who divided into 6 seperate flats\bedsits on 1st and 2nd floor.
History of property
- Sold Jan 2003 for £185k
- Sold Jan 2005 for £310k
Been marketed by agents for £199k, had offer on table for £185k but buyer withdrew last week. Estimate around £30-50k work to turn back into house. Area that it is located is ok, sales seem to have stalled though.
What would you think a reasonable offer for the property would be? I'm thinking of around offering £150k - £160k considering amount of work needed. Too much, too little?
Not planing as investment more of live in for next 10-15yrs. Work would be done slowly but alot of house for price, large victorian terrace.
All advice welcome
cs02rm0 said:
Offering around 150-160 doesn't sound unreasonable.
That's what i was thinking too. However speaking to mortgage adviser he said might come across problem with property as banks are reluctant to mortgage against property that has already been divided into flats. They'll assume you are planning on letting it out.To be honest, if bank will be willing to let it go for even £170k it would be a steal.
Sorry to Hijack the thread, im in the same boat.......
Got a 3 bed semi detached in the Northeast - popular railway town. It sold in 2007 in need of modernisation for 140k.
The previous owners(investors) have replaced all the windows, layed down a new block paving drive, landscaped the gardens and put flooring throughout, renewed the electrics and replastered the ceilings and decorated.
The house was repossesed in October. In spite they have ripped out the kitchen, removed the new block paved drive, done a few other bits and pieces and left the place in a bit of a mess.
On the market for 79k. Im tempted to offer 65k.
This is no joke, the house is in a nice area (i grew up in the said town). It has great access to the A1, is not over looked, within walking distance of town and local schools.
Am i being cheaky with my offer? I have not bought a house before!!
Got a 3 bed semi detached in the Northeast - popular railway town. It sold in 2007 in need of modernisation for 140k.
The previous owners(investors) have replaced all the windows, layed down a new block paving drive, landscaped the gardens and put flooring throughout, renewed the electrics and replastered the ceilings and decorated.
The house was repossesed in October. In spite they have ripped out the kitchen, removed the new block paved drive, done a few other bits and pieces and left the place in a bit of a mess.
On the market for 79k. Im tempted to offer 65k.
This is no joke, the house is in a nice area (i grew up in the said town). It has great access to the A1, is not over looked, within walking distance of town and local schools.
Am i being cheaky with my offer? I have not bought a house before!!
ShadownINja said:
6 bed house for £310k in 2005 can't have been very near London but OPer did say a lot of work needed doing.
Its West Midlands but it is a large victorian. Similar to alot of Victorian designs around Fulham.I;d say more 5 bed with 3 bed on 2nd floor and family bathroom and can 2 further bedrooms on 3rd floor with another room that can be turned into either bathroom\study\whatever really.
Ed.M said:
They will/should be expecting to accept offers of £175k due to the stamp duty threshold. You may find the bank put a retention on until it is returned to a single dwelling.
Sorry if dumb question but retention?Scrotum said:
On the market for 79k. Im tempted to offer 65k.
This is no joke, the house is in a nice area (i grew up in the said town). It has great access to the A1, is not over looked, within walking distance of town and local schools.
Am i being cheaky with my offer? I have not bought a house before!!
Same here, no chain which is another plus.This is no joke, the house is in a nice area (i grew up in the said town). It has great access to the A1, is not over looked, within walking distance of town and local schools.
Am i being cheaky with my offer? I have not bought a house before!!
Scrotum said:
On the market for 79k. Im tempted to offer 65k.
This is no joke, the house is in a nice area (i grew up in the said town). It has great access to the A1, is not over looked, within walking distance of town and local schools.
Am i being cheaky with my offer? I have not bought a house before!!
If you have not bought a house then you are in a good position !! Have you a good/decent enough deposit and an agreed loan ?? If so, you can so say and it means that they know you can move quickly, no chain, etc.This is no joke, the house is in a nice area (i grew up in the said town). It has great access to the A1, is not over looked, within walking distance of town and local schools.
Am i being cheaky with my offer? I have not bought a house before!!
Go for it !!
Edited by SimonV8ster on Saturday 3rd January 17:17
The trouble with offering too low is that the vendor may take it off the market for a few years. I'm in that boat with a couple of houses I have - one owes me £710k (I mean that's what I paid for it), I accepted £600k (ouch) the buyer ultimately pulled out and the last offer was £470k. I have decided to rent this out for 3 years or so.
It's obviously a buyers market at the moment, however vendors are taking properties off the market - so if it's a house that you really like, you need to pitch the offer quite well.
Maxf said:
How well researched is your 30-50k budget to turn it back into a family home? You don't want to make an offer then find out it will cost 50-80k (not saying it will) - although the higher end of your range seems more realistic.
Its a pure guesstimate however without survey who knows what it may uncover. Looking at it does look largely cosmetic. The previous owners haven't much more than put ensuites 4 bedrooms which with the size of the double bedrooms is fine but for the other 2 they could do without. It would be a case of ripping out ensuites, plastering etc.
The good thing about Victorian houses is that you do need to do alot to damage them so i think they've just done a case of putting ensuites in and fire doors to comply with building regs.
spikeyhead said:
silver.fox.2008 said:
Sorry if dumb question but retention?
...yes sir, you can have the mortgage you want, but we won't hand over all the cash until you've carried out the following list of work to convert it back into a single dwelling.NDA said:
The trouble with offering too low is that the vendor may take it off the market for a few years. I'm in that boat with a couple of houses I have - one owes me £710k (I mean that's what I paid for it), I accepted £600k (ouch) the buyer ultimately pulled out and the last offer was £470k. I have decided to rent this out for 3 years or so.
It's obviously a buyers market at the moment, however vendors are taking properties off the market - so if it's a house that you really like, you need to pitch the offer quite well.
Its been repossessed by the bank so the only other problem i can envisage is that they say no and put it up for auction.It's obviously a buyers market at the moment, however vendors are taking properties off the market - so if it's a house that you really like, you need to pitch the offer quite well.
silver.fox.2008 said:
ShadownINja said:
6 bed house for £310k in 2005 can't have been very near London but OPer did say a lot of work needed doing.
Its West Midlands but it is a large victorian. Similar to alot of Victorian designs around Fulham.I;d say more 5 bed with 3 bed on 2nd floor and family bathroom and can 2 further bedrooms on 3rd floor with another room that can be turned into either bathroom\study\whatever really.
If it is a repo. Then there is very little chance of it being pulled from the market. To another agent perhaps but I would be amazed if they pulled it with offers on the table.
Did previous owner add any extra kitchens? Or have they simply added bathrooms and doors. (A rightmove linky might help).
You could do alot worse than asking the agent what he thinks the repo company would recommend their clients (the bank) accept. He/she will want a sale and as such will be working with the repo. co. to "guide" the bank into accepting any half sensible offer.
Did previous owner add any extra kitchens? Or have they simply added bathrooms and doors. (A rightmove linky might help).
You could do alot worse than asking the agent what he thinks the repo company would recommend their clients (the bank) accept. He/she will want a sale and as such will be working with the repo. co. to "guide" the bank into accepting any half sensible offer.
Ed.M said:
If it is a repo. Then there is very little chance of it being pulled from the market. To another agent perhaps but I would be amazed if they pulled it with offers on the table.
Did previous owner add any extra kitchens? Or have they simply added bathrooms and doors. (A rightmove linky might help).
When we went to view it the agent was quite nice about it. He said they've marketed around 200k looking for offers of 185k. He said start around this figure. They then had the £185k offer but that was pulled last week.Did previous owner add any extra kitchens? Or have they simply added bathrooms and doors. (A rightmove linky might help).
In regards to the kitchen, its got an extension at the back which is the the width of the house so its 2 reception rooms, dining room and then kitchen which is a good size but obviously would need to come out and replaced.
To be honest, all i think the previous owner has done is the bear minimum to comply with regulations so has replaced doors, added en suites, other than that nothing more visible.
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