UK Landlord Forum / Life

Im currently house-hunting for my mother because shes a pain in the arse and doesnt know a good house when she sees one, so im doing the work for her, which is great because I love looking at houses and especially run down ones ! ha, its a shame for me isnt it.

So Ive seen a house, it was on for 85k but its been reduced to £79,950 in the last two weeks. There is no chain ( because the owner im guessing has died or has gone into a care home, however im thinking he's passed away because he was VERY old) and also it says it is unlikely that maximum mortgage facilities will be available. Which doesnt matter as my mum wont be getting a mortgage and is buying in cash. However im thinking thes are two good bargaining tools, as not many people will be able to afford to put money down towards the house AND renovate the property as it is in abit of a sorry state, but I really dont think its in that bad of a state to be un-mortgagable, but just the hint of that is putting people off. Also it has been on for a while... with not much interest.

Anyways my pondery is if I was to put an offer in, where do I start at. I think the most I would pay is about 65k... but odvouisly it would be lovely if I could get it alot less so that I could spend alot more on the interior of the house, as it does need a total re-fit.
I've had a look on other forums about putting offers on repossessions and someone was advising to look at the property prices on that road in about 2002 and you get a bench mark from that.
But im not too sure, because when I did that , the figures that came up where from 35k to 60k.

So I really dont know basically. I think im being abit dumb but if im to put an offer in, however checky I think even if they do reject it, i'll wait a week or two to see if they come back to me and then if they dont I will then make abit of a higher offer.
But its just how low to go, so its not just stupid............... hmmmmmmmmm.

Fifi,

The property is ont he market for 80k, and you want to put an offer in for 65k? That's quite a big reduction.
Have any properties on that road sold since xmas? If so, how much for, do you know?

Who currently owns the house, a lender?

Well hmmm its hard to say really .... its a long road ... so some houses go for £130,000 but others have gone for £70,000, that was in the last year.

But since xmas... nothing has sold. It is a mess though! so you think 65,000 is toooo low

Oh dear, I dont need to be more confused.

oh , I think the child/children of the person that owned the house, now own the house.

Yeah, that's like a 20% reduction from the asking price, i'd say that's quite a lot. You'll need luck.

But then again, if you're going to make ridiculous offers, now is the time!

If similar houses on the road have sold for 70k last year, then 65k is cool!

JUST MAKE AN OFFER!

Has the agent given you any indications of whether they're desperate sells?

nah , it was the manager I spoke too and he was abit uptight about it ! Was skirting around all my questions, he wouldnt even tell me if they had, had offers.

Offer 65k, see what happens 

I'd offer £50k - if they say no then it's to little. Then increase in £2500 increments to say55k then drop to 1000K increments till £60k. You never know they may settle for a lot less than you think or say you want a contribution to solicitors fees or deposit etc.

If you say you can complete in say 28 days they may be willing to drop! (yeah I know 28 days is just a pipe dream!).

I take the view that if the offer makes you feel really ill then it's about right! The estate agents will probably give you some indication of how close you are when you give them your offer by the sharp intake of breath, sucking of teeth etc. Dont forget its in their interest to get the best price possible but they are legally obliged to give all offers received to the vendor. Also, a surveyor will value at least 10 maybe 15% less than advertised price AND they are real sticklers at the moment for ANYTHING that looks out of place. Bit of damp forget it! Dodgy wallpaper/decor - £2000 off!!!!

Let us know how you get on!

Jools

PS - did you get  to the German Market in Manchester? I got stiffed on the price of 7 hot dogs and crepes. Cheaper to go to Deutchland next year!

JOOLS! 50k? You are ruthless 

Well it's a starting point and they can say no!!

Better the money in your/FeeFee's account than theirs! If you want to make some money out of renting/property then you have to be ruthless!!

The Japanese have a saying - Business is War (yes I know their economy is in the crapper now!!) and it is true.

When you feel really uncomfortable at a figure then in my opinion you are about right. I bought a house in Cardiff recently that needed major work doing to it. On market at £175000 - I offered £133000 and it was accepted! Planned on spending £10k on works but managed to do the job for £5k!

Go on FeeFee - you know you want to!!! Stiff drink and pick up the phone. When the estate agent laughs just tell him to do his job and inform the vendor! You never know until you ask!!

Jools