Fibro house. What can go wrong?

[mumbai]

I just put my offer (verbal) on a 40-50 yo Fibro house. I guess it will accepted and will have to legally sign the offer. The price is 60K below market price.

The condition of the house is not go great. I have not got the B&P inspection done yet. It has a external faux-brick rendering, the bathroom needs reno and there is some work on the garage.

Is there anything else that I should be worried about before I formally sign the offer and lose my .25%??

 

[Melbournian]

asbestos.....it is bound to be everywhere.

get a quote to see how much if its going to cost to remove it if you are intending to renovate.

 

[mumbai]

Can I renovate without touching the asbestos?

 

[Rob Williams]

The price is 60K below market price.

Isn't the market price, then, the amount you offered, assuming the offer is accepted by the vendor?

Market Price is usually defined as the price at which a buyer and seller converge at a given point in time.

 

[mumbai]

Market Price is usually defined as the price at which a buyer and seller converge at a given point in time.

Not too experienced with the words, but whats a bargain price then?

Also, my understanding of the market price is the price of a house with similar age, condition and location.

 

[ozsupra]

Plumbing and wiring. On a house that old I would have checked these before making an offer.
A.

 

[nww]

Never had any issues owning fibro houses or finding people
to work on them however of late when I renew the insurance
they ask if the house is asbestos clad/lined/or roof and I'm told
I'm paying a higher premium for it.

 

[Kamak]

If you have only verbally made the offer why do you have to sign? Persoanlly I wouldnt be going near a fibro place unless it was being offered way under land value MINUS the cost of the asbestos removal which could run you MANY (10s) of thousands of dollars...

 

[mumbai]

Persoanlly I wouldnt be going near a fibro place unless it was being offered way under land value MINUS the cost of the asbestos removal which could run you MANY (10s) of thousands of dollars...

Why would someone sell a functional house for under Land value?

 

[willb]

Nothing wrong with a fibro house. Just be aware that it will have asbestos and dont go knocking walls down or sawing them. just patch and paint.

if your lucky the walls will be horse hair plaster and only the outside will be asbestos.

 

[Melbournian]

Never had any issues owning fibro houses or finding people
to work on them however of late when I renew the insurance
they ask if the house is asbestos clad/lined/or roof and I'm told
I'm paying a higher premium for it.

Yup - did a old victorian one in albert park the asbestos removal costs were close to $50K alone.

 

[mumbai]

Wow! thats huge. That makes me wonder, whether I should back off.
The average price in that area is around 460K upwards. Advertised price taking into consideration this factors is 409K.
This house is fully functional. Just needs reno in the bathroom and there are three trees in the backyard for which council approval has been received.

 

[HotRod]

Wow! thats huge. That makes me wonder, whether I should back off.
The average price in that area is around 460K upwards. Advertised price taking into consideration this factors is 409K.
This house is fully functional. Just needs reno in the bathroom and there are three trees in the backyard for which council approval has been received.

Hey, you got it for $60K less. Now you can afford to remove the asbestos.

 

[Angel]

You do not need to remove asbestos anywhere unless you are actually going to break it. In your case this would likely occur in the bathroom while renovating. So the cost will be minimal as only one room will be affected. Asbestos is only an issue if you are going to cut it, sand it, grind it or put holes in it.

 

[Melbournian]

exactly right - if you are just going to paint etc .. then yes you will not need to do anything really

however if you're going to remodel the kitchen or bathroom, these old fibros often use fibre cement sheets which has abestos when removing tiles etc.

As for the reno in albert park that was a full extension which costed close to 500K.

 

[handyandy]

Developers are knocking down all fibro with tile roof houses for $15k. Maybe up a bit now because of the tipping fees carbon tax inflation but certainly not a deal breaker.

If you need to work on it shop it around don't take the first scare mongering inflated quote.

Cheers