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Trying to buy a house at the moment and getting a bit fed up.
We looked at a house this week, total wrecker, £50K worth of work needed according to my builder and the agent selling it and the seller wants £30K less than it will be worth when weve done it up (the agents figures not mine), so I spend months getting it sorted and it will be worth much less than it has cost me, I wouldnt mind bit they just inherited it of an uncle who passed away, not like thay have a huge mortgage on it or owt.
Had exactly the same with the last house we tried to buy, inheritance, in need of total refurb and it would have been the most expensive house to ever sell in that street by a good £15K once we had done it up, not sold months later funnily enough.
Grrrr.
[i]We looked at a house this week[/i]
[i]so I spend months getting it sorted[/i]
eh ? 😕
Do you live in aberdeen ? Are you looking at the same houses im looking at ?
My only saving grace is my dads business is doing house renovations , extensions and new builds so i have access to tools , experiance and trade suppliers to get it cheaper - but the vendors dont know that ......
Still do all my calcs at full price for going back to solicitors with - thats what the banks and surveyors will be using when it comes to getting me a mortgage ...
Im pissed at how quick the houses are going in this buyers market - its not a buyers market its a sellers market if you have a decent house and dont want 2007 prices for it !
Oi!
No offence like
We looked at a house this week
so [supposing I bought it], I spend months getting it sorted
eh ?
Is what I think he means.
Buyers market, tell them to shove it.
Buyers market, tell them to shove it.
never tried to buy in Aberdeen obviously
Only a buyers market if you want or are selling something that no body really wants ......i could walk out tomorrow and buy a palace in a poor area .....and come home with change from my budget but no one is selling up an average house in reasonable areas .....presumably as they are all either happy or mortgaged to the hilt
never tried to buy in Aberdeen obviously
Is the OP in Aberdeen? I can't see where it says that.
Buyers market, tell them to shove it.
sorry missed the bit where you said it excluded Aberdeen
sorry missed the bit where you said it excluded Aberdeen
You've lost me, I don't see the connection between the OP and Aberdeen.
You are claiming its a buyers market, it is not so.
I'd say it is if you've got the money, except in Aberdeen and a couple of streets in London and I believe there are a few houses in Chester where they'll put up a fight.
I think a shortage of loan money would cut the supply of buyers in relation to the number of sellers, putting us in a buyers market. If the seller wants to hold out because they don't have a mortgage, that's another thing. If the OP has money and isn't, and I have no reason to believe he/she is, in Aberdeen, it's a buyers market and in their position I'd tell the seller to shove it.
Now you can go to bed...
I'd say it is if you've got the money, [b]except in Aberdeen and a couple of streets in London [/b]
I rest my case M'lud
Got the money and not in Aberdeen, Cardiff.
I rest my case M'lud
Oh dear, not very bright, are we?
The argument's the same catfood, that I think you go with a price, explain to the sellers the other example and that that house is still on the market and very simply that if they want your money, they accept your offer or you walk. And be prepared to walk. You should be able to pick up a bargain if you've got the money, are not involved in a chain and can sign quickly.
Make them an offer and leave it at that. If you do really want it then do it up for less that 50k or look at it as a home not an investment. Prices are all over the place IMO, some too expensive and a few bargains but they get snapped up very quickly so you have to recognise a good deal when you see it.
We are looking at it as a home rather than an investment but their price combined with the work required makes things a bit tight, it is worth it at the right price, not any price, so we will walk if neccessary. Its just a bit frustrating as its the second house in a row where we have been in this situation with the sellers agent saying that they are asking way too much and wont listen to them. We were in the middle of buying a house that was spot on for us but he had mortgage problems and had to take it off the market, frustrating and costly.
Ho Hum.
if they are asking too much, it will on the market for a while, sooner or later the penny will drop.
This is not intended as a boast. We've just sold our house after it being on the market for under a month; central Scotland (Strathaven). House is definitely nothing special; 3 bed end-terrace about 17 years old, some garden space, a conservatory. I was very surprised by how quickly it sold, and I made some observations of the buyers and potential buyers;
Couple #1 were young professionals (vets) who couldn't afford it, and were accompanied by the chaps parents. They were pretty frank about it; the older pair were assisting the younger with the buy, and when the young couple outgrew it, the older ones were going to move in.
Couple #2 were older and downsizing from a pretty large 4 bed. They've bought it.
Pretty different experience from the last time- no "new money" whatsoever coming through, no younger people getting onto the ladder, or if they were they were needing assistance from parents. And that's after a depression in prices.
This is only based on a fairly small representative sample of course, but its borne out some more from talking to estate agents. It looks like properties are selling, but only if the buyers are either mortgage-free or are stumping up to the LTV figures the lenders are after, 60 and 70%. Everything that seems to be selling quickly also seems to go within a couple of months and for (what looks to me) like 2004/5 prices.
Contrast that with my neighbor down the road; he's got the same house as me and wants/needs an extra 30k. Its still for sale after 2 years. Poor sod.
Fixer-uppers might be different, and Aberdeen sure sounds different- I'm surprised a lender is valuing the property with its potential price rather than actual. Might just be the valuation being out- if its a certain well-known estate agent then their figures seem to be about 20% off where the actual market is right now.
Yep - you have to know what you are buying and whether it will be worth the investment in time and money [b]to you[/b].
Last year I bid at an auction on a fantastic property/opportunity, had my builder uncle round to look at it and estimate repair costs etc and then factored in the time it would take me on top (project management and the simpler DIY jobs/manual work).
I also spoke to the local planning office several times to find out what would/wouldn't be allowable improvements/extensions etc (it is on green belt).
It was on at a starting price of £150k, we went to £182k (£2k over my original maximum limit but I got carried away). It eventually went for £230k.
It just so happens that it was next to my mother and father-in-law's house so we know the property and the fact it is on green belt.
My FIL has become friendly with the eventual buyers and they admitted that they thought it just needed cosmetic work doing, they didn't do their research and they were disappointed not to get the planning permission for the massive extension they had planned. In fact their architect told them 'you have bought a plot of land and some double glazing' (it had recently had DG fitted). and they have spent way, way more on doing it up than its eventual value and what they had budgeted to spend.
So basically - don't spend more than you think it will cost and repairs normally cost about double what you think they will cost.
Ah, I think I see the problem - you're believing what the estate agent tells you !Its just a bit frustrating as its the second house in a row where we have been in this situation with the sellers agent saying that they are asking way too much and wont listen to them
M_F is on the money
speaking to both the banks we use re mortgages - they will give 90% in special circumstances but more likely 85% (i was trying to free up cash to put into the renovation - hence why they were looking at potential value as well as current value - they wont lend on the potential value that would be mental but they do take it into consideration)
ended up walking from that house - it sold in less than a week but it looked like it had foundation problems - the rear corner/extension was sinking and there was water inside the same back corner of the house. potential for 10k of work to rectify and although it was up for half its market value ( based on the same house next door selling weeks about 3 months before)there was zero mention of this issue in the survey..
We were told by someone who does up derelict houses for a living that unless you can do all the plumbing / wiring / plastering yourself, or you are in the trade and get good prices from known good local tradesmen, it is rarely worth doing up houses from a purely financial point of view. Especially if it is an only house so you have to live in it during renovations.
Obviously for some people it lets them get a bigger house because cost of renovations doesn't go on the mortgage, but if you're not stretching massively I can really recommend buying a house in good condition, ours was about 5k more than other ones on the street, but the owner had just spent 25k on renovations (have all the receipts). People we know doing renovations all waste many weekends on it, whereas we just get someone in every so often when some maintenance is needed.
Thing is the renovations arent to make it pretty they are to make it livable, electrics, central heating, ceiling etc, Oh well.
Just don't let your heart rule your head unless you accept the total spent in time and money might end up being more than the property is worth.
Good advice MF, I guess that way at least you end up with the house you want in the end tho.
If it's a wreck and overpriced then just look elsewhere, I'd only be bothered if there was something very good about it that made it just right for you...
Pretty unprofessional of the vendors agents if they really said that the sellers , who they are working for/with , are asking too much and won't listen to them . If I was selling I would be looking for another agent .
a house is only worth what someone is willing to pay for it. Offer what YOU are willing to pay for it, and if rejected, walk away, letting the vendor know the offer still stands.
The house is in the hands of an asset management company, it was them that set the price, the agent isnt working for the vendor directly and isnt allowed to speak to them, this is why he was open about the price being too high in his opinion, tbh anybody looking at sold house prices in the area will know its a bit top heavy straight away.
It is also in the hands of a second agent.
Good advice MF, I guess that way at least you end up with the house you want in the end tho.
Yes - we bought a semi-derelict wreck (been empty of 50 years then someone started to fix it up and lost interest) for £142k. We probably spent another £30k doing it up (floorings throughout, decorate throughout, new bathroom and kitchen etc) but we knew it would only be worth about £150k when finished - but it had the position we wanted.
We were fortunate because we bought it and markets continued to rise but at the time we didn't think they would - but were still prepared to spend the money on it because it was right for us.
don simon - Member
I rest my case M'ludOh dear, not very bright, are we?
Aye I is fick 🙄
Bright enough to bought and sold property so I have no mortgage now.
The house is in the hands of an asset management company
then it's a matter of time before someone pays well over the odds (and they are welcome to it at that price) or it will go to auction where you'll be up against the trades and the paint em, markup merchants
most people who 'renovate' houses do as little as they can to make it sellable, your costings will be on the basis that you will live with it and want to do it thoroughly
The house is in the hands of an asset management company
Might change the approach a little bit then. 😉
edhornby - Yes our costing are for a thorough job done properly with an excellent builder, we will put a final offer in in the next few days and leave it at that, plenty more fish in the sea an all that cal.