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Martin25

Making An Offer For A House - Whats Best?

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Hi, i've seen a house which is completely run down so needs £10k spent on it to get it up to standard, its on the market for £90k and once done up would be worth something between £110 - £120k.

The estate agent did a block viewing and quite a few people turned up to have a look, being 1st time buyers we're interested as it has quite a bit of potential. What would you suggest to offer - should we jump straight in and offer the full asking price as it attracted so many people, offer £500 more than the asking price to clinch the deal or offer less - if so how much less?

If we offer less and someone offers the asking price will the agent inform us and give us the option to increase our offer or does the 1st accepted offer mean thas it. Anyone been in a similar situation?

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Martin, why do you think the EA did a block viewing? Do you think it was to panic you into making an offer? Sounds like it to me!

I think buying a property to make money is becoming very difficult in today's climate.

If you want it to live in, just make an offer you feel reasonable. There will be more properties in the future - don't be pressured into it!

If you want to post a link we could all have a more detailed look!

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This is the Property

It needs new:

Double Glazing

Central Heating

Kitchen

Bathroom

Plastering

Roof Repairs

Flooring.. Tiling etc..

The EA said all offers have to be made by 12pm tomorrow so just wondered if we offered £2k less than the wanted price do people think we'd stand a chance. The EA i suppose has played everyone to get them to all see the property in a block viewing which will makes it look like theres alot of interest - just wondered if anyone had been in a similar situation and if so how they got on ?

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1st point is that if you are a FTB then you do not want to be sitting in a derelict property when the market heads south!!.

2nd point, of course there are loads of people who will bid above the asking price, thats the game and it would be interesting to see what it really went for on nethousprice.co.uk in a month or so.

So without wishing to be rude, if you are hell bent on buying (Please dont do it, you will live to regret it) then buy something you can live in and simply pay the mortgage. Working all hours night and day, holding down a job, and keeping a relationship going is not conducive to renovating a house whilst living in it with limited funds.

You would simply make nothing, there's a lot more than 10k to spend on it I can assure you of that given the short list you posted.

Try 40K and you would be nearer the mark.

Dont do it, hold onto your money and buy when houses return to 3.5x1 average earnings not six or even seven times.

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This is the Property

It needs new:

Double Glazing

Central Heating

Kitchen

Bathroom

Plastering

Roof Repairs

Flooring.. Tiling etc..

The EA said all offers have to be made by 12pm tomorrow so just wondered if we offered £2k less than the wanted price do people think we'd stand a chance. The EA i suppose has played everyone to get them to all see the property in a block viewing which will makes it look like theres alot of interest - just wondered if anyone had been in a similar situation and if so how they got on ?

If you really think that that is 10K's worth of work your sadly mistaken my friend :(

I would say 20K at least! I would offer £70K myself. You have to take into account that BTL and professional 'flippers' will have looked at this also. If they dont offer a good price then there is a reason. DO NOT offer anywhere near the asking or above.

Your call, but I can see the potential. Are you sure thats all needs doing though? There are always hidden costs. Be careful.

TB

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STOP!!!!!!!!!!!!!!!!!!

Nethouseprice.co.uk

Address

Details

More Info

167 Telfer Road,

Coventry,

West Midlands,

CV6 3DJ £85,750

Terraced

Freehold

Not New Build 04-Jan-2006

Map (CV6 3DJ)

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Hi, i've seen a house which is completely run down so needs £10k spent on it to get it up to standard, its on the market for £90k and once done up would be worth something between £110 - £120k.

The estate agent did a block viewing and quite a few people turned up to have a look, being 1st time buyers we're interested as it has quite a bit of potential. What would you suggest to offer - should we jump straight in and offer the full asking price as it attracted so many people, offer £500 more than the asking price to clinch the deal or offer less - if so how much less?

If we offer less and someone offers the asking price will the agent inform us and give us the option to increase our offer or does the 1st accepted offer mean thas it. Anyone been in a similar situation?

How do you know that it would be worth £110-£120K if done up? The last semi to sell in Telfer road (Number 2) was £96K. The most that a semi has ever sold for in the road, or at least in the last few years, is £107,500. Looking at the far more numerous terraced houses doesn't seem to suggest that prices there are higher than they've ever been.

Billy Shears

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i have been looking at run down property to buy and in my opinion for the moment i would not touch it

reason being too many idiots thinking they can still make money by flipping em!

rundown property is bringing more money than its really worth

the house your looking at needs at least 20/25k spending on it

what will it be worth ?

do yourself a favour give it a miss . i bet it goes for more than the asking too!!!!!!!!!!!

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I have to say Martin, but if all that work needs doing it is not such a bargain. Have a look at other properties in the area: http://www.houseprices.co.uk/e.php?q=Telfe...+Coventry+&n=10

Now look at prices: http://news.bbc.co.uk/1/shared/spl/hi/in_d...ces/html/cq.stm

I would offer around 70k if I had to. But I wouldn't offer at all!

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blimey laurejon - you turned bear?

fair play to you - seeing martin25 (who presumably is a young 'un aged 25) make a potentially crippling mistake at this stage in the cycle is not good, but i guess he's got his head screwed on else he wouldn't be here.

mind you i bet a year or so ago when you were selling your BTL's you'd have told him to fill his boots! :P

teddyboy is right - £10K for all that work is waaaay underestimated - three times that.

a local builder will get that at the right price (to him) - he wouldn't have to pay the labour charges that martin25 would....

Edited by gasket37

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Whats the area like?, it does not look that bad from the outside, but you have been inside it, at least it is a 3 bedder so you got plenty of growing space. You don't have to do all the work at once.

If you can see yourself in there for a few years then go for it, as long as you can afford the mortgage repayments and the improvement costs. Perhaps go in at the asking price if you really want it.

As people have said they do block viewings to pressurise you, don't be panicked into any rash decisions, there is always another house ;)

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Hi, i've seen a house which is completely run down so needs £10k spent on it to get it up to standard, its on the market for £90k and once done up would be worth something between £110 - £120k.

The estate agent did a block viewing and quite a few people turned up to have a look, being 1st time buyers we're interested as it has quite a bit of potential. What would you suggest to offer - should we jump straight in and offer the full asking price as it attracted so many people, offer £500 more than the asking price to clinch the deal or offer less - if so how much less?

If we offer less and someone offers the asking price will the agent inform us and give us the option to increase our offer or does the 1st accepted offer mean thas it. Anyone been in a similar situation?

Martin, do you have any DIY experience or are you planning to pay someone?

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I have indeed turned Bear, the writing is on the wall.

I know of people still making money from property and in fact met someone last night who has three small properties on the go.

But, and its a big but................these are seasoned proffessionals who have been in the game for two decades plus, they can turn a job around and the house inside 12wks and they know their market.

For the newbies the horse bolted, and its time to sell up and bank the proceeds if you want money. If you want to keep what you have, and you are happy that it might be worth less as you bought in the last five years then fix the rate for at least 15yrs.

Remember a downturn is a slow process to the bottom and a long way back up.

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I have indeed turned Bear, the writing is on the wall.

I know of people still making money from property and in fact met someone last night who has three small properties on the go.

But, and its a big but................these are seasoned proffessionals who have been in the game for two decades plus, they can turn a job around and the house inside 12wks and they know their market.

For the newbies the horse bolted, and its time to sell up and bank the proceeds if you want money. If you want to keep what you have, and you are happy that it might be worth less as you bought in the last five years then fix the rate for at least 15yrs.

Remember a downturn is a slow process to the bottom and a long way back up.

sounds about right to me !

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this has all the hallmarks of EA phsyops.....

The Foxton's Ghost Squad? Frightening stuff....

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From the list of jobs that need doing, that's £25K.... FYI the developers are working on 20% - in that it has to turn 20% on top of what it costs - they can afford to cut that a bit, but if the house was worth much more in the market done, it would have been snapped up by a developer before it even hit the market - sorry to be so blunt.

I am doing that work (and a bit) to a relative's house for her, I have budgeted £25K and I have access to 'bargain' labour (IYKIM).

Unless you are very handy with a screwdriver and lots more, you are looking for trouble.

TBH, when I first read the thread, I assumed it was a spoof by one of the bears trying to drag people in, it was so blatantly one sided.

There are lots of houses and unless you are 110% committed to renovations and have some idea what you are doing, this sort of project is not going to do your relationship any favours (believe me on this one).

If it were worth £120K done, then the 20% means it would need to be sold for about £77K to allow £20K on it and £3K for fees - you work the sums out. Maybe £83K if pickings are lean but you would have to be pushing the market 20% upwards from its previous peak to do it even at those numbers......

It can be done - but it's hard to find and TBH whilst this house is presumably larger than most, you probably don't have any idea at this time what else will crawl out of the woodowrk (maybe literally) - where's your contingency for disasters and where will you find it.

It's not often I advocate caution on projects, but this looks like one (At that price anyway)....

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Right cheers for the advice guys - guess i need someone to put my feet back on the ground.

I still say it can be done for £10k (i know you guys are talking from experience though so dont doubt i can be wrong)- that was for the materials not labour, im a plasterer & my dads a plumber, my girlfriends brother is a sparky & his mate is a window fitter so that would save nearly all the labour costs.

Having read all your views i dont know what to do now :unsure: Earlier today i was set on jumping straight in with the asking price, then after discussing it with the folks thinking about offering a bit less - and now thinking about not bothering with it at all. Guess im going to have to sleep on it and if i do make an offer knock £10k off the asking price and see what the EA says about that. I can now start to see why this house buying is a headache and im only just starting :(

Edited by Martin25

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Right cheers for the advice guys - guess i need someone to put my feet back on the ground.

I still say it can be done for £10k (i know you guys are talking from experience though so dont doubt i can be wrong)- that was for the materials not labour, im a plasterer & my dads a plumber, my girlfriends brother is a sparky & his mate is a window fitter so that would save nearly all the labour costs.

Having read all your views i dont know what to do now :unsure: Earlier today i was set on jumping straight in with the asking price, then after discussing it with the folks thinking about offering a bit less - and now thinking about not bothering with it at all. Guess im going to have to sleep on it and if i do make an offer knock £10k off the asking price and see what the EA says about that. I can now start to see why this house buying is a headache and im only just starting :(

Not sure if someone else has mentioned this but some of those other potential buyers may be fake - ie stooges/friends of the EA. If they want to panic you into offering fast you have to wonder what it is that they are worried about you finding out?

If you're only allowing for the materials, at least allow a bit of notional money for the work you and family are doing - I've been redecorating a much simpler flat and it's a lot of time. If you do 5-10K of unpaid work and the selling price doesn't reflect that then you've still lost out.

Good luck either way.

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Hi, after talking about it with the mrs we're wasting money renting at the mo so would like to hold out for prices to drop but we're throwing our money away in rent.

SO i rang the EA this morning and made an offer for £83k. The EA rang me back at 5.30 this evening informing me that he was confirming my offer and if i wanted to increase my offer it had to be done then otherwise i wouldnt be able to increase it afterwards. I asked if any other offers had been made and he said had 11 offers but when i asked if anyone had offered more than me he said he couldnt say but didnt know - hmmm.

So i thought sod it - if i get it i get it, if i dont i dont. So i said that was offer we were making and we wernt increasing. I dont think we've clinched it but i'll let you know how it goes ;)

I dont want to get ripped off and theres plenty of houses out there for us to look at

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  • 342 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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