Advice on House offer

gerjzd1985

I'm looking at a house I really like. Its been on the market for 5 years!!!:eek: And the owner has drop the price from over 300k (ridiculous price never worth it) to 130k over the course of those years.

I have viewed the house and had a survey done. the house requires about 50/60k to modernise and deal with some problem areas.

The house is a detached 3 bed in the midlands, rural area.i Its difficult to compare asking prices to other properties in the area as there are no comparable houses for sale at present . Property price register only coughs up prices of houses that sold in this area before 2010.

EA says there's no offers on the house and owner needs to sell as it has been too long on the market.

Owner no longer lives in the house and has moved to a nearby town, from what I can see has not been occupied for a number of years, although someone has been maintaining the property ie gardens, gutters ect....

I would like to proceed with an offer (first time buyer, no experience, mortgage approved), but wondering how low should I offer considering the time the property is on the market and in light of the works required.

With the cost of works required I would not offer asking price as I don't see it as value for money.

Any idea on a reasonable figure for first offer?

Many thanks for your time.:)

draycottgirlz

Compare it to properties that don't need work in the estate or nearby...
What are they selling for? Property price register (not asking prices!)
Nothing sold there, well ask yourself why. Then offer what you think is reasonable...remember how much could you resell the property for if you needed.

How did you come to the sum amount for refurbishment?

Oh and ask yourself what is the property worth for you?

gerjzd1985

draycottgirlz wrote: »

Compare it to properties that don't need work in the estate or nearby...
What are they selling for? Property price register (not asking prices!)
Nothing sold there, well ask yourself why. Then offer what you think is reasonable...remember how much could you resell the property for if you needed.

How did you come to the sum amount for refurbishment?

Oh and ask yourself what is the property worth for you?

Yes thanks for your advice. Sum of refurbishment was calculated by the surveyor , I also had some tradesmen price up jobs and both valuations were roughly the same.

Resell price i'd guess in the region of 150k/160k if all works were completed, that would put the purchase price of the house down to bout 100k a fair price. Asking price is 130k at the moment.

P. Breathnach

So far as I can see, the starting point for estimating the value of a fairly modern detached house of reasonable quality in a rural area in the midlands should be about €130k.

Obviously things vary greatly about such a reference point - total floor space, appeal of design, quality of finish, amount of land, location, the state of the local economy, etc.

On the bare facts that you have given, I'd start my thinking at a figure below €100k.

Pawwed Rig

gerjzd1985 wrote: »

Yes thanks for your advice. Sum of refurbishment was calculated by the surveyor , I also had some tradesmen price up jobs and both valuations were roughly the same.

Resell price i'd guess in the region of 150k/160k if all works were completed, that would put the purchase price of the house down to bout 100k a fair price. Asking price is 130k at the moment.

There is your answer.
Based on your own calculations the maximum you should pay is €100,000. So any bids should be lower than this. In the even you cannot get it for €100,000, based on your information, you should walk away.

the_syco

Since you're mortgaged approved, offer something like 90k, with a deadline of a date one week away (eg; 5th July)?

gerjzd1985

the_syco wrote: »

Since you're mortgaged approved, offer something like 90k, with a deadline of a date one week away (eg; 5th July)?

Just to update I made offer with EA for 93.5k, before I even finished that sentence he said there was another offer on the house for 98k:mad: which has mysteriously came out of the blue. I said my offer still stands for a week. Their response was if the "other" offer falls through they'll contact me.
Time to wait.......

Pawwed Rig

gerjzd1985 wrote: »

Just to update I made offer with EA for 93.5k, before I even finished that sentence he said there was another offer on the house for 98k:mad:

That is a common estate agent ploy. It is their job to get as much from you as they can.
All I will suggest is that you be prepared to walk away rather than pay over the odds for a property.

the_syco

gerjzd1985 wrote: »

Their response was if the "other" offer falls through they'll contact me.

If it falls through, ask the neighbour for the owners details, although I'm thinking the bank may own it.

gerjzd1985

the_syco wrote: »

If it falls through, ask the neighbour for the owners details, although I'm thinking the bank may own it.

It's not a bank sale I know owners name but he isn't living in the property and has not lived there for a number of years. He is currently living with his son. Older gentleman

gerjzd1985

Obviously I'll have to wait a week to see if the ea gets back about my offer which is on the table til next Thursday.
Have a feeling ea will not call back as they said they have " another offer of 98k" .
Should I wait it out , my max bid would be 105k but don't want to peak too soon , but also don't want to miss out if the other offer turns out to be genuine. My current bid is 93.5k.
Any ideas ?
Thanks

D3PO

gerjzd1985 wrote: »

Obviously I'll have to wait a week to see if the ea gets back about my offer which is on the table til next Thursday.
Have a feeling ea will not call back as they said they have " another offer of 98k" .
Should I wait it out , my max bid would be 105k but don't want to peak too soon , but also don't want to miss out if the other offer turns out to be genuine. My current bid is 93.5k.
Any ideas ?
Thanks

the odds are the other bid is BS a property on the market 5 years that conveniently has another bid when you put an offer in whilst plausible doesn't sound likely.

But that's the game, its like poker if you think the EA is bluffing you call the bluff, if you lose you lose. If you think its genuine then you have no choice but up your bid.

It really is no different than a game of poker.

gerjzd1985

Unfortunately I always sucked at poker !

MadMagpie

How did this work out in the end for you?