The increased demand for fixer-uppers

There are many things that people look for when buying a property.

It might be the location, itself desired because of its character or the proximity of essential amenities and transport links. Or it could be the tranquillity off an established garden that's not overlooked by the neighbours. Or its quirkiness or number of rooms is particularly appealing. Or it could be any number of those and more besides.

But, usually, one of the primary drivers is the answer to the question, “but can we afford it?”

If the answer is “no”, then you'll know the direction you can take. If it's “yes”, the decision could be unequivocal. But if it's “maybe”, you might be looking for properties that meet a lot of your priorities but you'll have to accept a few compromises along the way.

This could go some way to explaining the findings of a recent analysis of the market by online estate agent, Yopa, which shows a recent rise in the number of homebuyers looking at properties that require a significant amount of work.

The increase in this part of the market is likely to be driven by the need to reduce the initial cost of taking that first step on the property ladder, since the accumulated work required will mean that the sale price will be pitched at a lower price than that for the average property in the same area.

Yopa's analysis of the property market shows that of some 330,000 properties that were listed, fixer-upper opportunities formed the largest fraction of that market, with 46% already sold subject to contract or placed under offer.

Online property portal Rightmove's analysis of the market shows that, on average, a home that's designated as a “fixer-upper” (the property euphemism for a property that needs a fair amount of work to bring it up to modern living standards) has a 12% lower asking price than similar properties that need little to no work.

Yopa's analysis, however, also identifies that the stock of such properties is understandably diminishing as their popularity increases, with 5% of new listings being categorised as a “fixer-upper”.

It's worth considering a property that might be deemed to be “a project”, particularly if you're prepared to do some of the work yourself, since they may be far more affordable than others on the market in your chosen area.

However, you need to balance the cost of renovation and rework against the savings that you'll be making from the agreed asking price. Not only that, but you'll need to consider the disruption and the duration of the works and how that disrupts your day-to-day living.

You'll also want to ensure that what started out as a project doesn't turn into a money pit, where you are so invested in the property that you keep having to find money to pay for the latest problem that has been unearthed.

This is where investing in a detailed building survey is so crucial. The assigned Chartered Surveyor will visit the property and carry out a thorough inspection of every aspect of the property from the state of the woodwork to the cause of any cracking found in the walls and ceilings.

They will provide a detailed report at the end of the analysis of the property that is broken down into an easy-to-understand traffic-light system:

• Green - no problem found.
• Amber - a problem has been identified, which needs addressing but not necessarily immediately.
• Red - a serious problem has been identified that needs to be remedied immediately.

In addition, your surveyor will provide advice and information on what remedies need to be performed, with an estimate of the costs involved for the remedial work.

Armed with this information, you'll be able to see whether buying a particular “fixer-upper” is a worthwhile investment or not. And, dependent on the urgency of the work required, you have the evidence of a qualified professional to reopen negotiations on the asking price.

Buying a property is a major financial undertaking and having the information to hand regarding its state and the cost of renovation will give you that extra peace of mind when it comes to making your decision about taking the purchase to the next stage.

If you are planning on buying a property that needs a lot of work doing to it, you'll want to get a professional assessment of any existing problems and what the remedial effort and cost will be with a RICS Level 3 Survey. 

At Surveyor Local, we only work with chartered surveyors who are members of the Royal Institution of Chartered Surveyors, ensuring the survey you get is always professionally delivered.

They will work hard to identify all kinds of problems, including the impact of prior flooding on the structure of the property.

Call  to get your no-obligation survey quote started, or to discuss your concerns with the acquisition of your planned property.

Or you can get a quick quote, using Surveyor Local's easy-to-use quote generator. Simply input your name, postcode, email address, phone number and an approximate value of the property (usually the agreed price), and we'll give you an instant quote for the work (with an email copy). 

We'll do the rest once you confirm your acceptance of the quote.