Buying a Doer-Upper
- While requiring more upfront work and investment, transforming a doer-upper (or fixer-upper) can deliver significant financial rewards and a home perfectly tailored to your taste.
- Before the purchase, carefully consider the location, budget, and scope of renovations. A full structural survey is crucial to find potential issues and avoid costly surprises.
- Lenders often require larger deposits and valuations can be complex. Exploring options like bridging loans, personal loans, or government schemes can be beneficial.
Do you dream of transforming a house into your perfect home? Are you an ambitious first-time buyer looking to hop on the property ladder? A doer-upper might be for you, a perfect canvas for your creative vision.
What is a doer-upper?
A doer-upper (also referred to as a fixer-upper) is a property that requires renovation or modernisation to bring it up to standard. This could be anything from simple cosmetic improvements and decoration to a full-scale rebuild.
While many of these properties look rough around the edges, they can often be transformed into homes with fantastic potential, offering a great return on investment.
Think of a doer-upper as a hidden gem waiting to be discovered, but be wary that home ownership is not just about aesthetics. Structural issues, outdated electrical wiring, and plumbing problems can plague doer-upper properties.
Are you buying a home to renovate?
Our carefully selected panel of solicitors have experience in doer-upper sales and purchases and can help you with yours.
We'll support you from initial contact to completion day and we'll help you solve any property challenges along the way.
Doer-upper vs new build: which is right for you?
Why would you choose a doer-upper over a new build? For starters, there's the potential for financial gain. With careful planning and execution, you can add value to the property and sell on for profit with renovation work. However, it isn't just about the money; a doer-upper can allow you to create a home that truly reflects your personal taste.
Buying a new build means it'll come with the same shiny, modern designs and limited customisation options, whilst a doer-upper allows you to design your aesthetic, select bespoke fixtures and fittings, and offers you more control from start to finish.
Not to mention, older properties bring a certain charm and character from original features like fireplaces, high ceilings, and period details that add a touch of elegance to the home.
In short: while they require more work and investment upfront, a doer-upper can be incredibly rewarding.
Pros and cons of a doer-upper
Pros
- Potential for high returns: With careful planning and execution, a doer-upper can significantly increase in value.
- Customisation: You have complete control over the design and layout of your home.
- Character and charm: Many older properties boast unique features that can't be replicated in new builds.
- Sense of achievement: Transforming a property is incredibly rewarding and can boost your confidence.
- Potential for eco-friendly upgrades: Doer-uppers offer opportunities to incorporate energy-efficient features.
Cons
- Time-consuming: Renovations can be a lengthy process, requiring patience and dedication.
- Unexpected costs: Hidden problems can arise, leading to budget overruns.
- Stressful: Dealing with contractors, planning permission, and unexpected challenges can be overwhelming.
- Disruption to your life: Living in a construction zone can be inconvenient and uncomfortable.
- Potential planning restrictions: Older properties might have limitations on what you can do.
16% of homeowners discover defects
In our recent survey, 16% of homeowners found defects; including 2% who were able to pull out of a bad purchase, 7% who were able to negotiate a better price, and sadly, 7% of homeowners who did not get a survey and discovered defects after the purchase.
12 of the 39 who remembered how much these defects cost to remedy spent over £5,000
Don't burn your money, book a survey.
Finding the perfect doer-upper property project
Discovering an ideal doer-upper requires a keen eye, patience, and a clear goal in mind. Before you start your search, consider the following:
- Location: Where do you want to live? Consider factors like schools, transport links, amenities, and future development plans. Buying the 'worst house on the best street' is a technique used by a lot of homebuyers in building equity.
- Property type: Do you dream of a charming cottage, a spacious Victorian terrace, or a modern apartment with potential?
- Budget: Determine your overall budget, including the purchase price and renovation costs and stick to it. To save money, you might consider doing some work yourself to help stay on top of your budget.
- Scope of work: Are you up for a full-scale renovation, or are you looking for a property that requires cosmetic improvements? Do you want to put your own stamp on the home?
- Timeframe: How quickly do you want to move in?
Once you've nailed down those, you'll need somewhere to look for these hidden gem properties:
Estate agents: While many focus on ready-to-move-in properties, some specialise in properties requiring renovation.
Online property portals: Websites like Rightmove and Zoopla often have a selection of doer-uppers.
Auctions:Auctions can offer opportunities to purchase properties at below-market prices, but it's essential to do thorough research beforehand.
Word of mouth: Networking with friends, family, and local builders can uncover hidden gems.
You've now found a candidate, what do you look for at the viewing?
- Structural integrity: Check for signs of damp, subsidence, or structural damage.
- Electrical and plumbing systems: Outdated or faulty systems can be costly to replace.
- Roofing and windows: Assess the condition of the roof and windows for potential issues.
- Layout: Consider the property's layout and whether it suits your needs and desired renovations. Don't be afraid to take measurements; it can help you plan your furniture layout.
- Potential: Visualise the property's potential and how it aligns with your vision.
- The neighbourhood: Talk to neighbours, they might be able to provide valuable insights into the property and local area.
If you know a trusted local builder, it can help to bring a contractor with you (perhaps on a second viewing) who can help you work out estimated costs for the renovation. This is crucial to budgeting for the purchase.
Budgeting and mortgages
Renovation costs can vary widely depending on the scale of the project, so it's essential to create a detailed budget plan and allocate a contingency to cover unexpected expenses. It's advisable to add around a 20% contingency to your original estimate.
Securing a mortgage for a doer-upper can be more challenging than you think. Lenders will often require a larger deposit and will conduct a valuation that takes into account the property's current condition. You'll need to work closely with a mortgage broker that specialises in renovation projects to increase your chances of securing finance.
Other finance options might be available to you as an alternative to working with a mortgage lender:
Bridging Loans: These short-term loans can provide quick access to funds for purchasing a property before selling your existing home. They can be useful for buying a doer-upper, but interest rates tend to be higher.
Personal Loans: While not ideal for large-scale renovations, personal loans can help cover smaller costs. However, interest rates can be significant.
Savings: Using your savings can reduce reliance on loans and interest payments.
Equity Release: If you're a homeowner, releasing equity from your existing property can provide funds for a doer-upper. However, it's essential to understand the long-term implications.
Government Schemes: Explore government-backed schemes like Help to Buy or shared ownership, which might apply to certain properties or circumstances.
Found your perfect doer-upper?
Read our articles on home improvements that add value and house renovation costs for more information on the best renovations give you the best value.
Getting a Home Survey can help you estimate your ROI and give you a headstart. If your home is less than 50 years old, a Level 2 Survey might suffice, but a Level 3 Survey is required for older properties and if you aim to alter the home's structural integrity with your renovation project.
If you're unsure which survey to get, worry not! Give us a call at 0333 344 3234 or grab an online quote below and we'll talk you through the process.
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