If you’ve ever been drawn to the idea of purchasing a property that needs a lot of work, you’ll understand the rush of excitement—and that feeling of unease. However, the rewards can be incredible.
Here are some top tips to help you navigate your adventure of transforming a fixer-upper into something amazing.
Consider Your Budget
Determining what you can afford is the essential first step. Purchasing a property that requires significant work at a reduced price could ultimately be worth more once the renovations are complete, saving you money in the long run.
However, with a renovation project, unexpected costs are almost inevitable. You may need to address hidden issues such as a collapsed joist, woodworm, or damp.
The Money Advice Service highlights some costly repairs to watch for in a new property, including damp, missing roof tiles, plumbing problems, and rotten window frames. You might also need to rewire the electrics.
If you’re not planning to live in the home during renovations, you’ll need to account for additional expenses like rent, on top of your mortgage. It’s also worth noting that securing a loan or mortgage for certain properties isn’t guaranteed, especially if the property is deemed uninhabitable.
Viewings
Bringing a trusted builder and/or building surveyor to a property viewing can help you estimate renovation costs more accurately.
It’s also a good idea to consult with an estate agent to assess whether your renovation plans will add value to the property or risk over-developing it, making it less appealing to future buyers.
Making an Offer
If you’re confident you can manage the project financially, how do you decide whether to move forward? Here are some top tips:
- Don’t underestimate the effort. Renovation projects can be physically and mentally demanding. For example, you might spend years waking up early and dealing with ongoing construction.
- Don’t underestimate the costs. Review your numbers thoroughly—three, four, or even five times. Renovation budgets often grow due to unforeseen expenses, so ensure you’ve accounted for contingencies.
- Trust your instincts. If you love the property, it’s in a location you want to live in, and you have a clear vision for what you want to achieve, follow your gut.
- Balance emotion with logic. While your instincts are important, make sure your decision appeals to both your heart and your head.
Building Work, Planning, and Regulations
Once your offer has been accepted, it’s highly recommended to arrange a full structural survey from a qualified building surveyor, particularly for older properties. This may uncover issues that could require renegotiation with the seller.
For large-scale projects (costing six figures or more), hiring a quantity surveyor is a wise investment. A quantity surveyor helps manage the financial aspects of your renovation, ensuring you stay on budget. Any money spent on their services is likely to save you money in the long run.
At this stage, you can begin gathering quotes from builders. A quantity surveyor can assist in managing this process. It’s generally advisable to avoid agreeing to daily rates with builders and instead negotiate a fixed price for the entire project.
Whether you plan to undertake the work yourself or hire professionals, it’s crucial to familiarize yourself with local planning and building regulations. Understanding these rules will help ensure your renovation complies with legal requirements and avoids unnecessary delays or fines.
By following these steps, you’ll be better prepared to tackle your renovation project and turn a wreck into a dream home.