Selling a house that needs lots of work
Posted on 1st May 2019 at 12:14
When dealing with a property that needs substantial amounts of work there are really two ways to do it. Firstly, you can sell it as it is. Secondly, you can do the work to the property. But which way is best.
There are strong merits for both, but it is important to remember what you are selling and who your target is, and also how much is any work going to cost you! If deciding to do the work to the property then you also have to take into account the amount of time it is going to take to get the work done, as there is a time cost involved as well.
So, if you are considering doing the work to a property before it is marketed, how far should you go? Let’s assume there is a property in terrible condition and you everything needs doing to it, well you that’s what you have to do……everything!
It’s no good just cleaning it up, slapping some white emulsion over the woodchip and going with that! The old kitchen, old bathroom, dodgy electrics and battered windows still exist, and people aren’t daft. A full renovation of any property, including all windows, electrics, central heating and redecoration is likely to hit £20,000 fairly easily, unless you are doing the work yourself, and so you then have to work out what the difference in achievable price is if you decide to sell the property now or go with doing the work.
If, like a couple of properties we have done recently, the difference between being in a state of disrepair and being in very good condition, is around £25,000, you have to ask is it worth doing? If the property you are dealing with is horrendous, and when it is completely refurbished, is going to be worth less than £175,000, then tread carefully. The likelihood is that the refurbishment is not going to be worth it and you are better off selling it as it is.
This is an overview of what our advice would be and in our next blog, we will look in more detail a out what you can do to maximise the price you achieve on a house that needs work doing on it, with very little effort and minimal cost.
For more information on this and anything else relating to the housing market just give us a call on 0116 3409989 or to find out a guide on your property's current value go to http://valuation.thepropertyfox.co.uk/
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