If you have watched daytime television, then you have come across many shows that take you into the entertaining world of property renovation. One way or another, you have considered buying a property just so you can also take part in the renovation. Therefore, here is a guide explaining how to find houses that need renovation.
It can be challenging to find that perfect home to renovate when it comes to the location, timing, and money. A lot of it can seem like pure luck rather than an actual plan that worked out. This guide will help you carve the path to find the perfect property to renovate and gain successful results.
First question that needs an answer:
What are the Reasons for Renovation?
In the past couple of years, the housing market has become well past its prime. Considering the prime was just five to ten years ago, that is not much of an era. You cannot just sit around and wait to make money from a property. That simply will not do. The market can go up or down, or in any direction at this point. So, you must consider how to proceed in such circumstances. Renovation is one of the best courses of action to take.
Following are the reasons for renovating:
- Affordability – As run-down houses for sale are cheaper, you are more likely to afford them.
- Profit – Buy a property at a rate that is lower than the market value, fix it up, and sell it at a higher price. Make some profit for yourself. A lot of people live well off from doing so.
- Customisation – Everyone has their unique style and taste, but still most homes have a similar style. A house that needs fixing can be a fantastic opportunity to implement your style and personality. Thereby making it stand out.
- Location – You have the option of finding houses that need work for sale in a location that may have been out of reach before in terms of affordability. The goal is to find the worst home in the best street.
5 Fundamental Points to Consider in Property Renovation
Before you step out your door and make a run for it to find the best possible home for renovation, consider the following important points:
- Daytime television gives the wrong impression as renovation work is far more costly and time consuming than it appears on your screen. You are going to require professional assistance when it comes to structural aspect of the property, as well as electricity, flooring, tiling, plumbing, and painting.
- Permission is required from the leaseholder to make changes if you are dealing with leasehold properties. Make sure to check out all this before you buy, especially in terms of exterior makeover and layout.
- Banks will not give out loans for properties that do not have liveable conditions, such as non-functional kitchens or bathrooms, or any other non-standard construction. It is best to have your finances all ready to go.
- Run down houses for sale that are in conservation areas, have covenants, or are listed, are more difficult to deal with. They may require planning permission for any changes you are going to make. Both interior and exterior. Which means more cost for you to bear. You might want to consider if it is worth all the trouble.
- Your building regulations officer will become your partner in crime. You both will work together in the electrics, energy conservation, drains, and extensions departments. Which means more expense and time.
How to Find Houses that Need Renovation
There are several ways you can find houses that need work for sale. Some of them are creative and some of them are not. Here they are in all their glory:
Property Search Sites
If you have ever gone on a property hunt, you probably have heard of Zoopla and Rightmove. They are well known amongst those who are interested in purchasing property. Many property sites exist where you can locate the property of your preference.
All you must do is thoroughly survey these sites and find the properties that require renovation. Unfortunately, “fixer uppers” are not listed as a separate category, but there is a way around it. You can see the property’s conditions in the photographs and check out the price tag. If it’s less costly than the other similar properties in that area, then there is probably a reason behind it.
Whenever you go on a quest to find houses that need work for sale, you can find the home of your dreams on websites such as propertyrenovate.co.uk and self-build.co.uk. Sites such as these have listings of properties that do not fall under the standard listings you come across everywhere else.
Although these sites are built for those who are experienced and make a living out of it, you can locate some rare properties that will work for someone who is new to this business.
Attending an auction is almost always worth it. People put their home up for auction when they have tried and failed at every other method. Therefore, you can bargain. Most of these properties are either run down, require extensive renovation, disputed because of marital or bank related issues, or simply do not qualify for the label of normal lending.
The property owners just want the sale to be over with, so if you can be quick about it, you are likely to succeed.
Leafleting and Visiting
When all else fails, you simply go knocking on doors for opportunities. You may not know this, but a lot of people are stuck in homes that need improvements. As the owners cannot afford to do so. If you come across a house that clearly requires fixing, get in touch with the owner. It might lead to a private sale.
Some people are unaware of the value of their home and might be glad to get rid of their run-down property.
When you are out on your quest to locate a house that requires renovation and notice that no one resides there, you can look at registration records to find out who owns it.
Luckily, it is not costly to go through a registration record and then you can reach out to the owner directly to ask about buying the property. And if that does not pan out, simply ask the neighbours.
When nothing else will do, you will find that councils are helpful. Some of them have special schemes that motivate people to buy run down properties and make them brand new. They even have lists of houses, whether publicly or privately owned, that they are willing to sell to people who can do the required work.
You can visit your local council’s website to find what you are looking for. Thanks to councils running regeneration schemes, you have the chance to buy an old property at a very low cost. You can even obtain loans that you can pay off after you sell the house.
Here is another issue that needs to be addressed when buying a home that needs work:
What About the Mortgage for Properties that Require Renovation?
Under the circumstance that you do not have cash just lying around to purchase a property, you can opt for a Mortgage Agreement in Principle, sometimes known as Decision in Principle.
No matter what you call it, it’s simply a piece of paper that mentions the amount the lender is willing to let you borrow when you buy a property.
Friendly reminder to get insurance for your building before the exchange of the money. That way, you are protected from the start.
Another action you can take is to reach out to local real estate agents. You can inquire about what other buyers ask for. Which can help you decide if you want to add it to your existing budget.
Consider the following question and make sure you have a concrete answer:
What can you do that will bring the most value to the property?
Whatever comes to your find, jot it down, plan it out, execute it, and see the results. It is a lot of work, but it will be worth it in the long run.
Whichever path you choose to take as an answer to how to find houses that need renovation, make sure you understand that you are going to be facing problems such as expense, lack of time, and even frustration.
Do not stress as the result, which is profit, is worth it. Dedicating your time and effort to the cause can be a good for both rural and urban areas. So go on your quest to bring new life into old properties.
Be prepared to handle all the troubles that come along the way on your journey to discovering, fixing, and ultimately selling properties. A wonderful destination awaits you at the end, so what is stopping you? Begin your search today!