A house without a functioning kitchen or bathroom is not security a standard lender wants. That single fact removes most buyers from the market for those houses, which is the reason they trade at a discount.
What habitable usually means
Definitions differ by lender, so confirm yours in writing rather than relying on a general rule. In practice most residential lending assumes a house that someone could move into on settlement day.
- A working kitchen with a sink and cooking facilities
- A bathroom with a functioning toilet, basin and shower or bath
- Connected water, wastewater and power
- A weathertight roof and building envelope
What that means for your offer
If the finance is not certain, the offer has to be. Conditions, timeframes and the funding structure are agreed before anything is signed, not after. Your broker and lawyer confirm the specifics for your situation.
The honest part
This is a narrower market for a reason. Fewer buyers means less competition and it also means fewer exits if the work runs over. Nothing here is financial advice and no outcome is implied.