Top tips for home buyers taking on a renovation property
It’s no secret that home buyers on a tight budget can get more space for their money but purchasing a run-down property and doing it up themselves. We found that buyers know they can make savings on stamp duty costs by purchasing a cheaper property, preferring to spend the money saved on renovating to suit their own requirements.
Many big renovation projects don’t always go to plan so before jumping ahead of things, make sure you do your research and factor in unexpected costs into your budget, so the value added hasn’t already been spent.
Check out our top tips for home buyers when taking on a renovation property…
Prepare for it to go over budget
We advise that you don’t get too over-excited by the lower price tag of a run-down property as you may forget the expenditure that comes with it. Renovations always cost more and take longer than anticipated. You also have holding costs and often temporary rentals to take into consideration.
You need to ensure that your design project would get the green light from the councils planning office! Many properties are listed with planning permission already granted, it’s worth looking at what other homeowners in the area have got away with in the past for guidance.
Fixer-upper homes are extremely popular in family neighbourhoods, meaning serious buyers must get ahead of the game. A Victorian terraced home ready for renovation can generate significant competition. Interested buyers will have done their homework, worked out their sums and factored build costs into their budget.
Get the experts on side
Consider finding an architect who will be upfront with you about costs, even if you then end up not buying and they lose a potential job. Consider offering an advice fee as an incentive and always have back up funds – you don’t want to run out of money if a problem occurs.
How much stress can you handle?
Renovation means different things to different people. Some may want a tired property that needs a fresh lick of paint, while others are willing to knock down walls to create their dream open-plan layout. Consider your main motives for doing the work and how much disruption you can manage.
Be realistic about how much value you can really add and don’t overspend. If you want your renovation to add value to your home, you need to know the ceiling price for your property. If you’re already at your ceiling price, don’t expect further renovations to add to the value of your home. If you’re thinking of a complete refit, consider the value of your property and what return on investment you’re likely to see.