MegaSack DRAW - This year's winner is user - rgwb
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Thinking about putting an offer in on a flat as my first house.
How do you know what ballpark figure to offer?
Yes i know 'its what its worth to you' but i want to make sure if i sold it in 10 years time i can get back what i paid for it.
Also it needs some work doing to it (nothing major), so what percentage do you allow for that?
ta
You don't, all you can do is offer what you believe its worth, so that its a price that'll get you the property, and you can't assume that you'll get the money back in 10 year's time either.
Get some advice.
Are you sorted with a mortgage?
View a good few flats, both below and above your budget.
Start getting a feel for asking price vs selling price vs vfm and location. (Zoopla has a houses sold for this much button)
There are no guarantees on getting money back. House prices go up and down.
Define 'nothing major' on repairs.
i want to make sure if i sold it in 10 years time i can get back what i paid for it.
Not much guarantee of that any more I'm afraid. On the other hand, depending on where you are in the country property is as cheap as it's been for years. Buy somewhere because you want to live there, if you make (or don't lose) any money it's a bonus.
Are you sorted with a mortgage?
Already agreed in principle and very easily affordable
Define 'nothing major' on repairs
Probably needs a new boiler ~£2k
New oven ~£500
Maybe a new window ~£300 (although a new £10 seal may do the job)
General decorating (carpets/walls) but liveable in the short term.
New garage door ~£1k
The electrics were redone 12 months ago
Location - the next street to where i'm living now
The chances of getting less back in 10 years than you paid now are pretty limited unkess you overpay significantly or buy in an area which becomes blighted for some reason.
Have a look at other flats on the market, the UK doesn't exactly follow the £ per square foot model used elsewhere but it's a decent yardstick. Have a look in zoopla at price history in the area, you'll probably be able to find sales price of that exact flat last time it changed hands. To be honest the best advice is to spend time looking at lots of flats then you have an idea of what things are for sale and which ones are selling. With regard to the work needing doing that depends very much how major it is, places which need doing up are often in more demand than ones which are "finished"
i want to make sure if i sold it in 10 years time i can get back what i paid for it.
Doesn't work like that sadly.. Thats market dependent.. Although over ten years, even with another crash, you'd like to think you'd be ok.. But its all relative as that same amount might not equal the same thing down the road.
How do you know what ballpark figure to offer?
Hasn't your agent provided you with a list of comparables based on recent sales in the local area?
And as above, what's it worth to you?
[i]but i want to make sure if i sold it in 10 years time i can get back what i paid for it.
[/i]
Crystal Ball?
Seriously, if you are asking that kind of questions I'm not sure you should be allowed to enact any form of financial transaction. 🙄
Don't forget to check the maintenance charge.