Buying a fixer-upper, also known as a doer-upper, can be an appealing option for buyers looking to save money or put their creative stamp on a property. The process of purchasing and renovating an old house that needs some TLC can be complex and frustrating at times, but there are opportunities to add significant value and design the home of your dreams. If you’re thinking about taking on a project rather than buying a new house, we’ve put together the ultimate guide to help you avoid mistakes and reduce stress.
Setting a budget
Setting a budget is an essential element of any property search, but it’s particularly important to keep a close eye on the figures when doing up an old or tired home. It’s often much more difficult to budget for a project than it is to buy a property that doesn’t need urgent attention or a huge amount of work. When you buy a fixer-upper, you have to factor in the purchase price as well as the cost of renovations, repairs and interior overhauls.
Start by figuring out the total budget for your new home. This will enable you to start narrowing down your options in terms of the properties you view and it will also allow you to compare houses that make it onto the shortlist. You may find that you consider houses that are well below budget but need a lot of work as well as properties that are closer to the top limit that require less spending on them. It’s useful to be able to weigh up the pros and cons of different houses to help you make a decision.
When budgeting for a doer-upper, it’s important to get quotes and to round up rather than down. Use accurate figures wherever possible and try to set aside a contingency fund. It’s not uncommon for projects to go over budget. Many people find that there’s more work to do than anticipated once they start delving deeper or they get their home survey back.
Finding the perfect property
Once you know what price range you’re looking in and you’ve chosen a location, you can start trying to find the perfect property. Set boundaries, filter results according to price and contact local estate agents. Use websites to view listings and get a list of the best agents in the area and organise some viewings. It’s helpful to view a wide range of properties and explore different areas within your chosen region, town or city to give you a better idea of what is available and what you can get for your money. If you find that prices are too high, even for houses that need fixing up, you could expand your search area. In some cases, including a few additional streets or considering different suburbs or parts of the city can increase the range of available properties hugely. Buying in an up-and-coming area can also be a great way to add value.
Viewings are essential if you are considering taking on an extensive building or renovation project. Photographs can be deceptive, and descriptions only provide a limited amount of detail. It’s best to see properties with your own eyes. If you find houses that you like or that have potential, book second viewings. Think practically when comparing homes and do your sums. Think about how much you’ll need to spend to get the home you want. If you fall head over heels but the total cost is going to be slightly over budget, you could consider a staged renovation. This will enable you to spread the cost by putting non-essential jobs on the back burner until you have more money available.
Understanding the scale of the project
The next step if you find the right property is to make sure that you understand the scale of the project. In some cases, the work may be purely cosmetic and you may be looking at several weeks of tearing down old wallpaper, painting walls and replacing flooring and tiles. In other cases, you may need to replace the roof, update the wiring, upgrade the heating system and complete an interior design makeover. You might also be considering projects such as adding an extension, changing the layout to open rooms up or converting an attic or a basement.
Make sure you’re comfortable with how much work you’re taking on and ensure that you have a realistic idea of how long the project will take and how much it will cost. The best way to get an accurate idea of what is required to turn your vision into reality is to invest in a detailed survey. Your survey will provide an insight into the condition of the property, highlight jobs that need tackling urgently and enable you to establish priority tasks.
Negotiating the right price
There is often room for manoeuvre when you buy a property that isn’t in good condition. Speak to the agent, find out if there are any other interested parties and establish how long the property has been up for sale. If there are no offers on the table, interest has been limited, the seller is keen on a quick sale, or the property has been on the market for a long time, it’s worth going in relatively low with your first offer. You can always increase the price if the seller rejects it. If there is a lot of interest in the house, or there are already offers on the table, you may want to act quickly and put in an asking price or near-asking price offer to take it off the market.
Planning the renovation
You’ve found the perfect property and it’s time to start planning the renovation. Write down a list of the most important jobs to tackle and rooms to complete. Most people want to ensure that they have a functioning kitchen and bathroom as soon as possible. Highlight essential repairs, such as fixing plumbing problems and repairing or replacing a damaged roof. Get quotes from different companies. Once you have addressed structural issues and problems that could get worse, you can focus on minor repair and maintenance tasks and interior design. Create mood boards, start looking for ideas and inspiration and think about how you want your home to look and the kind of lifestyle you want to enjoy.
Finding the best companies for your project
Finding the best companies for your project is one of the most fundamental steps of a successful renovation. We often read or hear about renovation horror stories. It’s worth taking the time to research and get quotes. Ask people you trust for recommendations. If you don’t have colleagues, neighbours or family members who can give you names and contact details, make use of social media. Join local groups and ask for advice.
Always choose reputable companies that have expertise within the relevant field. If you’re looking to repair a damaged roof or replace the roof of your home, choose a reliable company with a proven track record like Edinburgh Roofing Company. Ask for multiple quotes, read verified client testimonials and compare prices. Search for local businesses that prioritise customer service and quality as well as competitive pricing. You may find that the best value offers are not the cheapest, as companies may be able to offer you more for a slightly higher price. Avoid companies that don’t offer warranties or have the relevant insurance and be wary of deals that seem too good to be true.
Adding value
When you’re renovating a property, it’s an excellent idea to look for ways to add value. Doing a house up can often be lucrative, but it is important to be mindful of how much you’re spending. Examples of projects that have the potential to enhance value substantially include adding an extension, converting a loft or basement, revamping the kitchen, remodelling the bathroom, sprucing up the garden and adding a garden room, conservatory or orangery.
Minimising stress
Undertaking a large-scale renovation project can be stressful. To reduce stress, keep a firm grip on your finances, plan meticulously and hire companies and contractors that have an excellent reputation. Be clear about your plans and objectives and make sure you have an accurate idea of how much each job is going to cost and how long it will take. Think about how you’re going to negotiate the period between buying the property and moving in if you can’t live in the house during the renovation. You may be thinking about staying in a rented property, finding a short-term let, moving in with relatives or friends or putting a caravan in the garden for a few weeks, for example. Being prepared can help to lower the risk of delays and disruptions and prevent stress.
Buying and renovating a fixer-upper is a great idea if you’re creative, you want to design your dream home or you’re looking to save money on a property purchase. It can be challenging to complete a project, but it’s also hugely rewarding. If you are doing up an old house, it’s critical to be realistic about costs, timeframes and the scale of the jobs you’re taking on. Set a budget, think about how much work you’re willing to do, arrange multiple viewings and negotiate on the price. Look out for red flags in the survey, explore ways to add value and research companies to find the best local businesses.
Disclosure: This is a featured post.