1 October 2019
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 Agents
If you are looking to move home in the near future, or need any advice with regard to selling your property, please don’t hesitate to call 01277 623010 or email me direct on firstname.lastname@example.org or click to see our latest Testimonials and more advice in our Blogs