A property with no kitchen – What is reasonable to deduct of the asking price?

[Guest]

Looking at purchasing a second property.

Has no kitchen at all, and all windows will have to replaced... And completely cleaned and painted to be even livable.

What is reasonable to deduct of the asking price? Just curious... market has slowed in the area I'm looking at..

[Denise]

They have priced it as is. You can offer whatever you like, it does not mean they have to accept your offer or your rational.
The market may have slowed but lower priced properties are still turning over.

[Kitty]

I want to offer you a different perspective here. I used to be a real estate agent and it used to drive me SPARE when potential buyers would look at property, then make an offer based on the work they felt the property needed and then deduct that amount from their offer. When looking at property, expect to pay close to what the vendor is asking (in most cases). Vendors don’t care about your budget or future plans. They want to sell as the property is.

Also be very caeful with this not having a kitchen. Speak with your bank if you intend to borrow as they may not as it is not inhabitable.

[Lisa]

Be aware that if there is no kitchen, I don’t think you can get a mortgage. Speak to your bank/ broker before making an offer.

[Margaret]

Just a thought…if it has NO (absolutely nothing) kitchen facilities that house is classified as ‘uninhabitable’
Might help with your offer.

[Robert]

You have to look at it this way. If this property was in good condition what would I pay for it. How much do I need to spend to bring it up to condition. The price you offer is the first price less the reno costs. Remember this is just a business decision.

[Chantal]

We paid a premium for our “as is” property late last year. Similar condition, rotten window frames, no gutters, everything is busted up but you have to evaluate whether the land/cost and time of renovating is worth it and what it will actually cost you in the end. Where are you located? It looks like a property just down our road from the looks of the inside.

[Belinda]

You may need to check you can insure it while it is not habitable. Our policy mentions that there is a functional kitchen and bathroom and I believe if a property is empty for more than two months it affects insurance cover. But I’m sure there is insurance available for a property during the construction phase, may just be worth enquiring about the cost so you can factor it in.

[Danielle]

Works that need to be completed are generally considered in the price of the house. You can offer less, but likely not be accepted if too low.

[Tatiana]

Do you think it's a bargain at the price that it's listed at now? It may be that they've factored those things into the price already. If you're fishing for a bargain then offer a lowball amount if you like, but be prepared to potentially be disappointed.

[Shelley]

I had to shop around to get insurance for our house that didn't have a kitchen when we bought it. Our current insurer wouldn't cover it but another one happily did.