There are so many property-related programmes on TV every week tracking the progress of a run-down house to a finished home. It would be easy to forget just how challenging these kind of projects can actually be. Despite the end rewards.
Over the past few years, we have seen a steady increase in the number of enquiries from buyers specifically wishing to acquire run-down doer-upper type properties. This has had a positive effect on the price we have been achieving for such properties, along with the demand we’ve seen at auctions that we’ve attended on behalf of our investors.
A word of advice though if you are buying at auction, be careful not to get drawn in to a scarcity-induced bidding war. Go with your top figure in mind and stick to it, be prepared to walk away. Some buyers find out too late that they have paid way over the odds at auction for a property.
Additionally, make sure that you account for a contingency fund. There are usually unforeseen and unavoidable expenses that only appear during the refurbishment itself.
In terms of the price you should pay, well, that would obviously depend on a number of factors, including the usual ones of size, location, condition, profit margin etc. As an approximate rule of thumb, pay no more than the estimated future value of the finished home, less the cost of renovation, your contingency fund… and of course profit margin if you’re looking to make money!
If you’d like some advice on a refurbishment project that you’re looking at buying, I’d be happy to share my views with you. Please just pop into the office or give me a call personally on 01277 623010.
Grace & Rose Estate Agent
If you are looking to move home in the near future, or need any advice with regard to selling or letting your property, please don’t hesitate to call either myself, or one of our team at Grace & Rose, your local, independent, family run Estate Agents in Billericay 01277 623010 and Brentwood 01277 230300 – book your free market appraisal https://graceandrose.co.uk/contact-us/ or email me direct on firstname.lastname@example.org
We also cover Shenfield, Chelmsford plus the surrounding villages including Blackmore, Bobbingworth, Chipping Ongar, Doddinghurst, East Horndon, Fryerning, Great Baddow, Great Burstead, Great Warley, Herongate, High Ongar, Hutton, Ingatestone, Ingrave, Kelvedon Hatch, Little Burstead, Little Warley, Moreton, Mountnessing, South Woodham Ferrers, Stock, Stondon Massey, The Lavers, The Rodings, West Horndon and Writtle.