Revised offer on repossessed 2 bedroom house.
As mentioned in previous posts, we had recently viewed a repossessed 2 bedroom home and had our initial offer had been rejected and the seller had set a closing date.
We figured the property would need a complete new bathroom at approx £2,000. The kitchen also needed some work, but with any luck this might be limited to just new cabinet doors and may be the work tops. Work was also required to fix a leaking overflow pipe in the loft that had caused damp on the ceiling and damage to the chip board floor in smaller, second bedroom. Allowing for decoration, new carpets throughout and also furniture, we could easily spend over £6,000 getting this property up to a rental standard.
We also had some concerns regarding this being a 2 bedroom rental property, please see our previous post on why you shouldn’t buy a 2 bedroom buy to let property…
After considering the property over a weekend, we emailed ours solicitor to tell them we’ll up the offer a bit but don’t think it’s worth going to the £50,000 as it needs quite a bit of work doing on it.
We had previously done well on the last time we made an offer on a property that went to a closing date. At that time there were at least 3 other people interested in that property, luckily we found out later that one of them ended up being property buying friends of ours who decided not to bid, so we managed to get the property a few thousand below the valuation price.
So what price should we offer on this current property which was offers over £45,000, was valued in the Home Report at £50,000 and we had been told that the seller had already rejected one offer at circa £50,000?
After a lot of deliberation, we told our solicitor to put an offer in of £48,110. If we got if for that price, it was worth the additional money and effort required to make it a good Buy to Let property, even if it wasn’t an easy addition to our Buy to Let, Passive Income Portfolio.