Viewing a potential new house...

[djswivel]

With our flat now as good as on the market, I started looking around for a new place.

Found a potential one, exactly what we want in a location we would both be happy with. Oh, and it's rediculously cheap. Way below what I would expect to pay for it.

Sounds great, right?

Slight snags so far-

It's being sold privately (no estate agents) and there's no pictures as of yet.

So tonight me and my brother are going to pop down and have a look at it. I haven't even told the wife about it yet because she'll only be excited.

To be honest, I'm not expecting it to be much for the price. I'm kind of expecting it not to have a roof....

[Robshaw]

With our flat now as good as on the market, I started looking around for a new place.

Found a potential one, exactly what we want in a location we would both be happy with. Oh, and it's rediculously cheap. Way below what I would expect to pay for it.

Sounds great, right?

Slight snags so far-

It's being sold privately (no estate agents) and there's no pictures as of yet.

So tonight me and my brother are going to pop down and have a look at it. I haven't even told the wife about it yet because she'll only be excited.

To be honest, I'm not expecting it to be much for the price. I'm kind of expecting it not to have a roof....

The two most annoying things in life for me are 'Damp' and 'Subsidence'. - Depending on the price and your budget anything else such as new kitchen, carpets etc can all be replaced at a later date.

I would focus on the structure for now. Outside the standard house aspect the local area and people you would be living with is also good to look at.

[djswivel]

We know the area well - the wife grew up 5 minutes walk away!

I'm expecting to completely redo the interior, but this is seriously below the expected price...

[cheezemonkhai]

It's a fact of life that some people just have to sell now.

If they paid 100k for the flat and it's now claimed to be worth £250k, then if they sell for £anywhere above £100k + the interest they have paid and the money they have spent maintaining it then they are quids in.

So if it's "worth" £250k by estate agents and really people will pay £210k for it and they are selling it for £180k, they are still quids in and it just seems like it's really cheap.

Property prices are not decided by estate agents, but by peoples need to sell, initial costs and most importantly what people are willing to pay.

If people want prices to come down, then the quickest way if for the buyers to dry up. Things seem to be going a bit that way, with the exception of a few areas, so it will be interesting to see how it goes.

[djswivel]

Okay, I'll break down the prices and a few more details.

3 Bed bungalow with kitchen/diner, lounge, utility room, one bathroom with toilet and a seperate toilet, detached garage and gardens front and rear.

In a rural village, last property on this road (similar spec) went for £267,000 in 2009.

I know prices will have dropped, but this is up for £135,000!

That's why I'm a bit apprehensive...

[cheezemonkhai]

Depends how long they have had it tbh.

Like I said they might have paid not much for it and need to sell (old person into care, divorce, something else).

At the end of the day it's obviously priced for a quick sale and to keep it well below stamp duty levels etc.

All I would say is make sure you're super careful and get a full survey along with using a solicitor to check the deeds of ownership in depth.

Basically if there is anything you could get caught out on, make sure you're paying somebody to check it.

Some rural areas have been hit really hard and it's London that has been keeping the overall figure higher.

FWIW, it might well just be that that's what the person thinks it is worth.

Edited 22 July, 2011 by cheezemonkhai

[djswivel]

Thanks Cheeze, feeling a bit happier about having a look now.

We're fortunate that we have a good solicitor (from the purchase of the flat, loads of strings with it due to 106 agreement) so if there were anything untoward, he would find it.

The other snag I didn't mention was that it's only a 5 minute walk from mother-in-law :(

['daiking']

Fire damage, unmortgagable construction etc, all sorts of reasons for a very low price. Sounds like that's what the land is 'worth'. Besides, if it is sound it'll go to a cash buyer before your sale board is even up, let alone your sale goes through.

Sorry.

[cheezemonkhai]

I wouldn't be so certain.

Don't get me wrong you could be spot on, but that's why you get a full survey done.

While there could be something wrong with it, it could also be that it just has to go.

I've seen places sold for far less than the agents say, because people just want rid due to a divorce or that their relative has died.

There are plenty of reasons either way IMHO.

Obviously I'm no expert, but then that's why you have the lawyers and survey etc right?

[Caenantkath]

Yep, check the construction. If it's non-traditional it might be ineligible for a mortgage, and pre-casts can be a nightmare, my parents found a very cheap bungalow in a rural village they liked but this turned out to be the reason it had a low asking price. They were told it was worthless as a dwelling and would need to be demolished eventually so the price was really for a plot.

[cheezemonkhai]

That's a fair point I will admit on the construction, but that will be pretty easy to tell.

If it's traditional brick and a tiled roof, then fingers crossed that would be ok.

Personally I'd think the MIL would be a good reason to stay away :p

Edited 22 July, 2011 by cheezemonkhai

[djswivel]

I know that contruction wise it's bricks and mortar with a tiled roof. The construction problem down here is Mundic block, but these were built too late to be mundic (as far as I know, anyway).

Obviously any damage I'll try my hardest to spot tonight, but with my brother being a letting agent he'll tear the place apart...

[Aspman]

Check for damp as said.

Check the windows, if they're double galsing look for misting. marring on the inside of teh glass. Blown units are very common.

Check the kitchen is is modern is it falling to pieces, are there wall units

Same for bathroom is it minging and all needing replaced.

Check roof soffits etc to see if they've ever been painted or look rotten.

Check council planning portal if they have one and check that they're not building a prison/refugee camp/nuclear reactor in the back garden.

Also check agencies for flooding risks, it's SEPA up here not sure of English equivalent.

Check news on google in case there reports of other big things happening in the area.

[GnatG]

Two pennys worth: Perhaps run the property address through an insurance comparison site for buildings & contents. If a property is flagged as high-risk then the comparison may show this up (see my thread about Insurance in Roadside hotel). Are the neighbouring houses owned or rented? That could affect the property price if there are any disputes.

[djswivel]

It's all owned. It's a small 7 bungalow cul-de-sac off the main road into the village. I'll have a go at the insurance quotes when I get home, good idea.

[Soot1e]

Don't just look around the inside of the flat, walk around the outside and have a good look at the walls and roof for cracks , loose tiles etc. Hope it turns out to be a bargain.

[Llanigraham]

We are currently looking at a new place, and I got a better and more accurate inspection from a local builder than I did from a surveyor, and it only cost me a couple of pints. Didn't need a valuation however, as no mortgage involved.

[jrw]

to keep it well below stamp duty levels etc.

Doesn't stamp duty kick in at £125k??

[cheezemonkhai]

Doesn't stamp duty kick in at £125k??

Yes, depending on some factors.

They keep changing the posts all over the place:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4015918

[Robjon]

Just my 2p:

Is it Freehold?

If not, how many years remain on the lease?

Good luck!

[jlwah]

I wouldn't worry about them selling it themselves, we've done that with our last two houses. Saved a couple of £K in estate agents fees and got a higher price too (though that was a good few years ago when house prices were rising!)

It's actually easier dealing with the sellers direct than going through an estate agent who is probably more desperate for a sale than the sellers! I dealt directly with buyers solicitors which was interesting, not least because I don't think they were used to same day responses. Felt much more in control of the whole process.

As others have said, main reasons for a low price are: desperation, condition, length of lease and any type of building/construction in the vicinity that is detrimental to the house.

[djswivel]

It's all over! Turns out he typed the price in wrong. It was meant to be £235,000!

Now it's overpriced for a place that's worth about £185,000!

[Caenantkath]

It's all over! Turns out he typed the price in wrong. It was meant to be £235,000!

Now it's overpriced for a place that's worth about £185,000!

Oh heck. And none of us thought of that!

[Soot1e]

What a time waster :wonder: The seller I mean.

[djswivel]

What a time waster :wonder: The seller I mean.

Indeed!

Here's the gumtree link to show I wasn't just being stupid...

http://www.gumtree.com/p/flats-houses/detatched-3-bed-bungalow/84208662

A numpty indeed...