Author: TomC

Posted on

What are cash buyers only and why do sellers prefer them?

What are cash buyers only and why do sellers prefer them?

This is an example summary of an example page with a bunch of different test titles and segments.

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

What does cash buyers only mean?

Cash buyers only means that sellers and vendors will only entertain house offers from potential buyers who have the cash funds readily available without relying on financing or mortgages. 

 

The term cash buyers only is often used interchangeably with cash purchases only and cash buyers only property. 

 

Buyers who are relying on mortgages, funds from other sources (like inheritance) or loans, or the buyers are awaiting a property to sell, they may have their offers rejected. They will need to provide proof of funds – which could be done using a recent bank statement.

 

Enquire for free

Can cash buyers offer less on your property?

Yes, this is known as buying below market value and is a completely normal industry practice. But, this is the question you will need to ask yourself – would you rather your home sell faster for a lower price? Or sell slower for a higher price?

 

Selling to cash buyers only isn’t like selling normally on the open market where you will get offers below and above your asking price. In most cases, the buyer may put in offers below market value because they need to renovate or fix their property.

Do cash buyers pull out?

Until contacts are exchanged, all buyers can pull out of a property transaction – this includes cash buyers. Although cash buyers do say selling with them ‘guarantees’ a sale, this isn’t necessarily completely true.

Why would a house be cash buyers only?

A house would be cash buyers only, if the seller is looking for a fast sale, there are issues within the property or it needs some renovation works.

 

Most people selling with cash buyers only will expect to sell their home below market value as they are accepting the speed of sale in return for a lower selling price (usually 80% to 75%).

Why are cash buyers only good for fast sales?

Cash buyers only means that the seller is not waiting on the buyer to be accepted for a mortgage – which can often be one of the most time consuming parts of selling a house. 

 

In a normal house sale, not waiting on mortgage approval means that they are in a stronger negotiating position but, if a house is only accepting cash offers the margin for profit will decrease as everyone is in the same boat. 

 

If you are looking to sell your house and you want to do it quickly, finding a cash buyer could be a good idea, alternatively you could sell your house to us! We can help you sell your house in as little as 28 days but also find you a price you’ll be more than happy with.

Why are cash buyers only good for properties needing renovation?

Cash buyers only are great for sellers with issues within their property, especially ones that need renovation. This is because most cash buyers will be looking for damaged or derelict properties in order to renovate them and either let them out or sell onwards. 

 

This means that they can buy below market, add value to the house, and then sell for maximum profit. 

 

As long as you announce any issues within your property when they initially look around, then selling below market value for cash can be a very viable option. If you hide any structural issues within the property, then the buyer could pull out.

Enquire for free

Why do sellers prefer cash buyers only?

Most people sell to a cash buyer because they are after a quick sale, with some cash buying companies being able to buy in as little as seven days. 

 

But, as you probably know, the property market isn’t that simple and there are plenty of different reasons people decide to sell a property to cash buyers only. 

 

Some other reasons sellers prefer cash buyers only is because they are:

 

  • A Landlord trying to sell tenanted properties and avoid busy waiting on buy to let mortgage applications.
  • A divorced couple selling after separation.
  • Someone trying to stop repossession. 
  • Someone who has inherited a property that needs a lot of work.
  • A seller or vendor that has been gazumped and needs to sell fast.

Why are cash buyers only good for properties with structural issues?

Properties that have structural issues like subsidence, heavy roof damage, bowed walls or dampness caused by leaks are often put on the market as cash buy only. This is because they require a certain amount of investment which is accounted for in the buyer’s asking price. 

 

If the property has been victim to serious damage and is in a state of repair from fire or flooding then, again, cash buyers only can often be the best way to sell. 

 

If the property suffers from Japanese Knotweed, then it may be sold to cash buyers only. Getting rid of Japanese Knotweed can be expensive, and annoying, but it must be announced to any potential buyers.

 

If your property has been damaged by damp due to condensation, a leaky roof or flooding then you may find that it will cost you a large investment to fix yourself. Potential cash buyers will be able to invest into the property with their own cash reserves. 

 

Furthermore, many experienced property renovators and developers are often cash buyers, which is why if you know neighbouring damaged properties have been sold to a developer it could be lucrative for you to follow this route too. Developers will often look to purchase multiple properties in a small vicinity in order to create a larger development plot. 

 

Some other reasons to sell your house to cash buyers only are:

 

  • The property is old and/or does not have an Energy Performance Rating of C or above. 
  • The property has been built with non-standard construction materials. 
  • The property is considered smaller than usual, and may in fact be too small to get mortgaged. 
  • The location of the property makes it problematic for mortgages, for example it’s in an undesirable or hazardous area. 
  • The property has a short or defective lease; if a leasehold property has less than 80 years remaining it can be difficult to sell on the open market.
  • The property is plagued with legal issues due to negative easements, unfulfilled overage clause obligations, planning or building control limitations and restrictive covenants.
  • The property is mixed use, meaning it is split between residential and commercial units.

Are property cash buyers any good?

One of the main benefits to selling your house to a cash buyer is that you avoid property chains, as the cash buyer is not waiting to sell a house before buying yours. Not only does removing the property chain mean the process is faster, it also decreases the chance of the sale falling through. 

 

One of the biggest reasons house sales fall through is because the house sale slows down, or halts due to issues with mortgage applications, conveyancing or issues within the property.

 

Most of which can be avoided by cash buyers as they have their own funds, use their own streamlined solicitors and will get independent RICS valuations before they put in an offer. 

 

But, there are better ways to sell your house in a short period of time, for more profit. For one, you could sell your house fast to us! 

 

We are an online estate agency who can help you sell your house in as little as 28 days, all while covering all the marketing and legal costs associated with the house sale. 

 

Want to get started?

Enquire for free

Cash buyers only FAQs

Cash purchasers only refers to where the seller says that they will only accept payment in cash for the property, and they will not consider mortgage or other financing options. 

 

Some sellers may prefer cash purchasers only because they can be faster and involve fewer complications as the buyers do not need to wait on mortgage approval. 

 

However, limiting a house sale to cash purchasers only can restrict the pool of potential buyers, as not everyone has the financial means to make cash purchases.

 

If you come across a property listing on Rightmove or Zoopla, labelled as cash purchasers only, and you’re still interested in the property, it’s advisable that you consult with an estate agent (like us) to explore your options.

When a home is a cash buyers only property, similarly to cash purchasers only, it means that the property will only welcome cash offers. 

 

If you find a cash buyers only property and you do not have enough cash to purchase the property, then in most cases your offer will be rejected. 

 

However, you may get lucky if the cash buyers only property hasn’t got the interest needed and the vendor may entertain a mortgage offer – but you will need to have already attained approval and be ready to move on a fast timeline.

When it comes to selling a house, most articles will tell you, you will need to work out which is most important – time or money, but, this isn’t the case!

 

It is completely possible to sell your house for cash and get market value, as here at The Property Selling Company, we believe that selling a house should be three things: fast, effortless and free. 

 

We offer a fantastic full online estate agent service, without all the fees – because it’s our mission to change the way people sell their houses. 

 

If you want to sell your house for cash, and for full market value then we will find the right buyer for you! We pride ourselves on our exceptional service, and we hope we will see you soon.

Posted on

Can I sell my house with mortgage arrears & what is it?

People organising Mortgage arrears

Can I sell my house with mortgage arrears & what is it?

Wondering if you ‘can sell your house with mortgage arrears’? Well you’re in the right place!

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

If you are wondering if you ‘can sell my house with mortgage arrears’, well the short answer is yes. Selling your house with mortgage arrears can be a complicated process, particularly when considering factors such as support for mortgage interest, the remaining mortgage term, and the need for debt advice.

In such a situation, it’s vital that you seek guidance from a reliable mortgage or debt advice service. In 2023, various support schemes exist to help homeowners reduce their monthly payments and manage missed payments effectively.

Exploring options to reduce financial strain and seeking debt advice can be instrumental in devising a feasible plan to pay back any arrears before proceeding with the sale.

Enquire for free

What is mortgage arrears?

Mortgage arrears refers to the situation where a borrower falls behind on their scheduled mortgage payments. This could be due to various hardships such as job loss, reduced income or unforeseen expenses. 

 

When a borrower falls into mortgage arrears, the mortgage lender might apply additional charges to cover the costs associated with managing the account during this period. If the arrears are not repaid within a specific timeframe, the homeowner is at risk of having their property repossessed by the lender.

How easy is it to fall into mortgage arrears?

Annually, there are a staggering number of approximately 80,000 mortgage homeowners in the United Kingdom grappling with the challenging reality of falling into arrears. 

 

Given the severity of the consequences, it’s vital to understand the potential ease with which mortgage arrears can occur. Sudden financial setbacks or unexpected life events can make it challenging for individuals to keep up with their mortgage obligations. 

 

Borrowers should be aware of the legal rights of mortgage lenders, which allow them to repossess the property within 90 to 180 days of the borrower falling into arrears.

Can mortgage arrears be written off?

While some borrowers may consider seeking complete debt forgiveness, mortgage lenders are generally reluctant to write off debts entirely. They are more inclined to accept a repayment plan that involves either a lump sum or regular instalments.

 

Communication with the mortgage lender is key and it is advisable to seek professional advice and guidance from debt counsellors to understand the available options and create a realistic plan for repayment.

Will my property be repossessed if I miss a mortgage repayment?

If you miss a mortgage repayment, you should not have to worry about repossessed property. Repossession should always be the last resort that your lender takes when it comes to dealing with mortgage arrears. 

 

The majority of lenders will not start the repossession process until you have missed at least 3 repayments. Even then, many will delay if you agree to a mortgage repayment plan.

How does the house repossession process occur?

You may be wondering how the process of repossessing property works. Below we take a quick look at a breakdown of the process and what you can expect if you are going through the house repossession process: 

 

  1. You will first go into arrears with your lender. This means you have missed a mortgage payment and are now behind on your loan. 
  2. If you continue to fall behind on your mortgage repayments, you will continue to be in arrears. At this point, your lender may take court action to try and resolve the matter. 
  3. A court hearing will take place where a judge will hear the reasons why your house should or should not be repossessed. 
  4. If you fail to show up for this hearing, then the judge will more than likely rule for outright repossession. If you attend the hearing, then the judge will hear your case and a decision will be reached. 
  5. Once the court has deliberated your case, they will potentially issue a possession order. It may be a suspended order, which means that an agreement will be made to make up these mortgage arrears. 
  6. If you breach this suspended order, then bailiffs will be sent to your home. 
  7. Once this has occurred, repossession will happen, and your lender will sell your property. 

What do you do if you are in mortgage arrears?

In the event of mortgage arrears, proactive measures should be taken to help resolve the situation as soon as possible. This could include:

Communicating promptly with the mortgage lender, as they may be willing to negotiate payment terms or alter the payment schedule. Most mortgage lenders will give you a grace period of 5 to fifteen days after your last mortgage payment was due if you are struggling.  

 

Even if you cannot meet the payment deadlines, you may be able to pay it late but still be charged a late fee. The late charging fee is usually between 5% and 10% of your monthly mortgage payment amount, which stacks up over time if you continue to miss payments.

Exploring insurance coverage, such as a mortgage payment protection insurance, can also provide relief in cases of unexpected income loss due to illness, injury or redundancy.

Reassessing your expenditure and adopting cost-cutting measures can help alleviate financial strain. This could involve evaluating and potentially eliminating non-essential expenses, renegotiating service contracts or seeking better deals for energy and food.

Can you reduce your monthly payments?

Yes, you can reduce your monthly mortgage payments, all you need to do is contact your current mortgage lender. They can refuse your offer for a lower interest rate, but this won’t harm your credit score. We would recommend that you seek the help of a mortgage advisor or broker who can offer more information tailored to your specific situation.

Enquire for free

Can you sell your house if the mortgage is in arrears?

For people considering selling their homes to settle mortgage arrears, it is strongly recommended to initiate this process before the property falls into the risk of repossession. 

 

Taking proactive steps to sell the property before it reaches the point of repossession can help prevent potential financial shortfalls and alleviate the burden of solicitor costs. 

 

By proactively managing the sale, homeowners can secure a more favourable sale price, and allow them to clear their outstanding mortgage balance and any associated arrears.

What happens if you sell a house with an outstanding mortgage?

When selling a property with an outstanding mortgage, there’s several options available depending on the terms and conditions of your mortgage agreement. These options may include paying off the remaining mortgage balance, porting the mortgage to a new property, or entirely remortgaging. 

 

Seeking guidance from a mortgage broker can provide clarity on the most suitable course of action based on circumstances. In cases where the proceeds from the property sale are insufficient to cover the remaining mortgage, it may be necessary to negotiate a short sale with the mortgage company to settle the debt.

Is selling your home to avoid house repossession a last resort?

If you are facing house repossession, then there are steps that you can take to try and stop the process. Selling your home should not be your first port of call, however, if you are going to do so, it is best to sell as soon as you can. 

 

Before you decide to sell your home to stop repossessed property, you should consider some of the following steps: 

 

  • Speak to your lender about your situation 
  • Seek out support from external sources such as Citizens Advice, Shelter, National Debtline or your local council 
  • Pay what you can for the overdue payments 
  • Turn to family and friends for support 
  • Apply for universal credit 

Can I have my property repossessed voluntarily?

You do have the option to have your property voluntarily possessed. This means handing back the keys to your lender and moving out. Once you have handed in your keys, you will still be responsible for mortgage interest, building insurance, and maintenance costs until it is sold. 

 

However, it is worth bearing in mind that if you decide to go down this route, it can affect your: 

 

  • Benefits 
  • Credit rating 
  • Options if you need housing help from your council

How can you avoid repossession of your home?

To prevent the distressing possibility of home repossession due to missed mortgage payments and mortgage arrears, there are several proactive measures that can be taken, including exploring the option of selling your property. 

 

Our dedicated service offers a streamlined house selling solution that ensures a swift sale process, with the flexibility of selling in as little as 28 days. By using our service, you can rest assured that we prioritise securing the highest possible price for your home, providing you with a reliable avenue to settle your mortgage arrears and regain financial stability.

 

One of the key advantages of our service is the coverage of all costs associated with the sale of a property. From solicitor fees to marketing expenses, we cover everything, enabling you to navigate the process without any additional financial strain.

 

Whether you prefer a traditional open market sale or a discrete off-market transaction, we accommodate your timeline and objectives, ensuring a tailored approach that aligns with your preferences and needs. 

 

Our commitment to providing a seamless and cost-free experience aims to alleviate the pressure of potential repossession, offering you a viable and stress-free solution to protect your financial well-being.

Enquire for free
Posted on

How much value can a new kitchen add to house price?

How much value can a new kitchen add to house price

How much value can a new kitchen add to house price?

Wondering how much value does a new kitchen add to your house? Well you’re in the right place!

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

If you find yourself looking to sell your home, then you may be considering whether adding a completely new kitchen is a good way to increase the value of your home. 

 

Homeowners often wonder how much value does a new kitchen add to their property. Well, getting a new kitchen look can go a long way on the open market, particularly in competitive housing markets, increasing the attractiveness of your home and attracting more buyers. 

 

However, you will always want to consider who your target market is, as the type of buyer may greatly influence the amount of time and investment you spend on the property before putting it on the market. 

 

There are plenty of avenues to maximise your return on investment, away from the value a kitchen add to your home.

Enquire for free

How much value can a new kitchen add to a house price?

If you are wondering “how much value can a new kitchen add to a house price” then you’re in the right place! The kitchen is undeniably one of the most used spaces in a home, with people using the kitchen space three times or more a day. Which is why, kitchens also play a significant role when determining the overall value of a property. 

 

An aesthetically pleasing and practical kitchen not only increases the appeal of a house but also contributes to a higher valuation during a potential sale. Research suggests that the value of a house will account for 8% to 12% of the property’s total value, which shows the significance of a well-designed kitchen in the housing market. 

 

However, the actual impact of a kitchen on the property’s value is contingent upon various factors, such as the specific style, functionality and overall quality of the kitchen itself. A thoroughly designed and efficiently laid out kitchen can potentially boost the property’s value by up to 12%, making it a substantial investment for homeowners. 

 

Renovating your kitchen can add value to your home by giving your kitchen a modern and appealing look, thereby increasing the look of your home. A well-designed kitchen, equipped with the latest appliances and a thoughtfully crafted layout, can make your property more desirable to potential buyers, increasing the selling price.

 

Before initiating any kitchen renovation projects, homeowners should assess how much value does a new kitchen add to the functionality and attractiveness of the house. 

 

Upgrading the kitchen with features such as new flooring, updated countertops and cabinetry can completely transform the space, contributing to a higher perceived value of the entire property. 

 

A contemporary and functional kitchen design not only adds value to your home but also increases its chances of being picked up on the market by making it more attractive to prospective buyers.

How much value can a new kitchen add to an estate agent house valuation?

Estate agents frequently discuss how much value does a new kitchen add to their overall selling price of a house. Upgrading your kitchen and bathroom together can do wonders for a house valuation, as these are the rooms which prospective buyers will spend the most time on. 

 

If you have a modern kitchen and bathroom which appeals to the prospective buyers then this could increase your chances of receiving a higher offer which is why estate agents are more willing to increase the house price. 

 

Estate agents could increase your house valuation from 5% to 12% depending on the attractiveness of your bathroom and kitchen.

Does the size of a kitchen matter?

When considering the size of the kitchen, it is important to tailor it to the requirements and lifestyle of the home’s residents. For an average household, the kitchen’s size should ideally range from 10% to 15% of the home’s total square footage. 

 

In a standard UK house covering an area of 88 square metres, a kitchen of approximately 13.2 square metres, such as a standard galley kitchen, would be fitting. However, for larger households comprising more than four or five members, a spacious kitchen spanning around 18 square metres would be more suitable for accommodating the diverse needs of the family.

What adds the most value to a kitchen?

When it comes to evaluating a kitchen, understanding how much value does a new kitchen add can influence the decision to invest in the latest appliances, fixtures and furniture. 

 

There are several key features that estate agents may notice. Functionally designed kitchen islands, ample storage options, durable and visually appealing countertops and dedicated dining areas contribute significantly to the overall value of a kitchen.

How often do you need a new kitchen?

Considering the longevity and functionality of a kitchen, experts recommend planning a kitchen renovation or upgrade every 10 to 15 years. Despite being one of the most frequently utilised spaces in a home, regular refurbishments ensure that the kitchen remains contemporary, efficient and in line with evolving design trends, catering to the changing needs of the household.

Enquire for free

Why are new kitchens so expensive?

Renovating or installing a new kitchen can be a substantial investment, with costs varying based on the kitchen’s size, the quality of materials, and the desired finish. A complete kitchen remodel can range anywhere from £5,000 to £25,000, with the average UK household paying £7,000 on kitchen materials and installation.

What kitchen upgrades are worth it?

One of the most valuable upgrades is the creation of additional space within the kitchen, allowing for a more functional and versatile layout that caters to the specific needs and preferences of the household members. 

 

You could think about enhancing the kitchen’s functionality by considering layout changes, the addition of smart storage solutions, or the removal of unnecessary partitions, all of which contribute to a more spacious and efficient kitchen environment.

What costs the most in a kitchen renovation?

The most expensive part of a kitchen renovation is kitchen cabinets and worktops. These units form the backbone of any functional kitchen, and their cost can significantly impact the overall budget of the renovation. 

 

Although, integrating cutting-edge, high-tech kitchen appliances, such as the latest Samsung smart fridge models, can substantially escalate the overall expenses, especially if one opts for premium and feature rich appliances, contributing to the overall luxurious feel and functionality of the kitchen.

How can I save money on a new kitchen?

To mitigate the costs of a new kitchen, there are several cost-effective strategies you can use, like:

 

  • Replacing kitchen cabinet doors instead of investing in entirely new cabinetry
  • Exploring the option of purchasing second-hand kitchen furniture
  • Sourcing reclaimed materials for light fixtures 

 

There are also a few creative approaches to saving money on a kitchen, like experimenting with paint to revitalise existing elements and investing in dual-purpose appliances to yield substantial savings while enhancing the functionality and style of the kitchen.

 

Additionally, you could consider the purchase of complete kitchen units as opposed to individual components can often be a more budget-friendly option, as it may offer bundled savings compared to purchasing each element separately.

How much value can a new kitchen add compared to other home renovation projects?

Types of renovation projectsHow much do they cost on average?
Kitchen renovation£7,000
Bathroom renovation£6,000
Loft conversion£45,000
Basement conversion£800 to £1,500 per square metre
Garage conversion£10,000
Garden landscaping£4,000
Conservatory build£1,100 to £2,500 per square metre

Enquire for free

Does an old kitchen put buyers off buying my house?

The state and age of a kitchen can influence potential buyers’ perceptions of a property. If you put your house on the open market through a traditional estate agency, an outdated or poorly maintained kitchen can deter prospective or first time buyers seeking a move-in ready, functional space. 

 

Conversely, if you used a specialised online estate agency (like us) with a focus on investors and cash buyers, an older kitchen may be perceived as an opportunity for renovation. Investors often seek properties with potential for value appreciation through remodelling, buy-to-lets or flipping, making houses with outdated kitchens appealing as they offer the opportunity for substantial returns on investment.

Can you sell a house with no kitchen?

While it is possible to sell a house without a kitchen, you should note that the absence of a functional kitchen can considerably decrease the property’s value, potentially leading to a significant reduction in the final selling price. 

 

Properties lacking a functional kitchen are often deemed uninhabitable for mortgage purposes, restricting the pool of potential buyers to those capable of investing additional resources to install a new kitchen.

 

The costs associated with fitting a new kitchen are factored into the overall property valuation, resulting in a potential reduction of up to 12% in the final sale price.

What counts as a kitchen for a mortgage?

Mortgage lenders will have different criteria for a kitchen to be deemed habitable, with requirements usually including the presence of running water, a functional sink and a properly contained space.

 

Meeting these basic requirements is essential to ensure the property remains eligible for financing and speeding up the sale process.

Is it worth replacing a kitchen before selling a house?

The decision to replace a kitchen before selling a house should be carefully considered. If financial resources and time permit, upgrading the kitchen before listing the property for sale can potentially yield a higher selling price and attract more buyers. 

 

However, if budgetary constraints or time limitations are a concern, selling the property in its current condition remains a good option, albeit for slightly lower than market value.

Does a new kitchen affect the house price when selling?

Upgrading your kitchen can increase your property value, making your home more appealing and potentially raising the price of your home on the market. The impact of a complete kitchen renovation on the overall value of the house is dependent on how much you are willing to spend on your kitchen and the specific upgrades you choose to undertake. 

 

Whether you want your kitchen to feel like the heart of the home, create a luxurious kitchen and dining experience, or simply make your kitchen look more expensive, investing in a brand-new kitchen can add both extra value and individuality to your home.

 

From updating the kitchen storage and introducing a kitchen triangle layout to incorporating new handles and modern appliances, a renovated kitchen has the potential to transform an ordinary kitchen into a top home feature, adding significant value to your property. 

 

It doesn’t matter if you’re considering a full kitchen makeover or simply upgrading your existing kitchen for a fraction of the cost, the appeal of your home can be greatly enhanced by making your kitchen more attractive and functional.

Is it worth putting in a new kitchen before selling?

The decision of whether to put in a new kitchen before selling your home hinges on how much you’re willing to spend on a new kitchen and the potential increase in the value it could bring to your property. 

 

The potential to enhance the property’s overall return on investment prompts many homeowners to assess how much value does a new kitchen adds in the long run. 

 

A well-executed kitchen refit or a brand new luxury kitchen has the capacity to add significant value to your home, potentially impacting the overall house value and the price of your property. 

 

By making your kitchen look more appealing and adding individuality to your kitchen space, you can increase the appeal of your home and increase your home’s value.

 

However, the cost of the updated kitchen should be weighed against the potential increase in the value of the house, considering what the kitchen is already equipped with and how much value a new kitchen may actually bring. 

 

It’s vital that you assess the current state of the kitchen, the buyer demographic you are targeting and how much value the new kitchen will add in relation to the overall investment.

Enquire for free

How to add value to your home away from kitchen renovations

If you are looking to add value to your home away from kitchen renovations, then there are plenty of other options. See our house value hub below:

How To Sell A Shared Ownership Property UK

February 1, 2024 No Comments

How to sell a shared ownership property UK Selling a shared ownership property explained Tom Condon ★ Digital Content Writer Table of Contents If you’re a shared owner looking to sell shared ownership home and wondering ‘how to sell shared

Read More »
sell my flat

Sell My Flat Fast UK

January 25, 2024 No Comments

Sell My Flat Fast UK Looking at how to sell my flat fast, the costs involved with selling a flat, and how we can help you sell in as little as 28 days. Alexandra Ventress ★ Digital Content Writer Table

Read More »

Are there any other ways to get the best price for your home?

One of the best ways to get the best value for your home is to sell with us! We are a leading online estate agency with over 50 years of combined experience in the industry. We can sell your home in as little as 28 days, and we will cover all the costs associated with selling your home. 

 

In order to guarantee that you get the best possible price for your home, we will agree with you on a price for your home that you are happy with. We will then do everything in our power to reach this price target. This ensures that whatever the house sells for, you do not face a price that doesn’t match your expectations.

How much value does a new kitchen add? FAQs

If you’re wondering ‘does a new kitchen add value to your home’, then you’d be happy to know it does! Adding a new kitchen to a property

New kitchens which are stylish and attractive can add up to 12% on top of a house value.

When selling a house on the open market, it may be wise to renovate your kitchen and bathroom as this is what many buyers care mostly about. But, this doesn’t mean you should neglect the rest of the property, adding a fresh lick of paint to bedrooms and living spaces can also do wonders when trying to attract attention to your property.

Not always, if you are selling your house through an auction house, cash buyer or to an investor, selling your house as is, may be preferred.

Enquire for free
Posted on

How to sell or claim on old derelict house in the UK

Derelict house

How to sell or claim on old derelict house in the UK

In this article we will cover how you can sell or claim an old derelict house in the UK.

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

In the UK, over a quarter of a million properties are classed as derelict, with the North East exhibiting the highest number of derelict properties, indicating more than 1.4 unoccupied properties for every 100.

 

If you are looking to sell or claim an old derelict house in the UK, there are several important steps to keep in mind. Firstly, if you are looking to claim or sell an old derelict house in the UK, then you will need to evaluate the property’s value, consider its location, its state of disrepair and its potential for attractive renovation.

Sell your derelict house without all the hassle

Enquire for free

What is an old derelict house?

An old derelict property, also known as an abandoned property, is characterised by its prolonged period of vacancy or neglect. Since August 2022, homeowners have no legal obligation to uphold a specific standard of maintenance for their property.

 

Nonetheless, when a house is flagged as derelict because of issues such as broken windows or doors, roof damage, boarded-up entrances, or excessively overgrown outdoor spaces, the local council retains the authority to contact the owner. They can issue a request for necessary measures to be taken in order to ensure the property’s safety and habitability.

Why do properties become derelict?

Several factors contribute to the dereliction of properties. Frequently, derelict properties require extensive repairs or have structural issues that the owner lacks the financial resources to address, leading them to remain untouched for extended periods.

 

Various other circumstances contribute to properties becoming derelict, including insolvency or repossession proceedings, unfinished property developments, issues related to inherited properties and environmental problems such as contamination or subsidence.

What is a semi derelict property in the UK?

If you have ever taken the time to look down an auction house portal, you may have noticed properties that are labelled as ‘semi derelict’. Well, a semi derelict property refers to a building that is not entirely in a state of disrepair but exhibits significant signs of neglect and deterioration. 

 

Semi derelict properties tend to have visible signs of wear and damage, including issues like a partially collapsed roof, broken windows, or some structural damage that impacts a building’s stability. 

 

While they are not fully dilapidated, semi derelict properties require substantial renovation and repair work to restore them to habitable condition. They may still have salvageable elements or architectural features worth preserving, making them potential renovation projects for investors or buyers interested in restoring historic properties.

What’s the difference between abandoned and unoccupied houses?

An abandoned property is one that has been left inhabitable and in a state of disrepair for an extended period of time, whereas an unoccupied property is one that is still maintained by the owner but is not yet open.

When is a derelict house considered dangerous?

Derelict properties are considered dangerous when basic upkeep and protection from the elements are neglected, causing rapid deterioration. Instances where a property may be classified as a dangerous public health risk include:

 

  • Severe structural issues due to a lack of maintenance. 
  • Unsafe conditions resulting from fire or storm damage.
  • The presence of flammable materials or risk of explosions.
  • Unstable walls or fencing susceptible to collapse.
  • Unsafe flooring or non-weight bearing roof spaces.
  • Poorly maintained roofs with potential for falling tiles.
  • Unstable chimneys at risk of collapsing. 

 

In cases where a property becomes hazardous following a natural disaster or fire, temporary precautions such as fencing, warning signs, or netting are often employed to prevent further risk. 

 

Purchasing a derelict house requires a comprehensive assessment to identify potential hazards and determine the necessary measures to ensure safety before any further actions are taken.

Enquire for free

Can I claim an abandoned house in the UK?

Yes, you can claim a derelict or abandoned house. Claiming an abandoned house allows individuals to become property owners without spending much money. But, claiming a derelict property is not as straightforward as it may seem. 

 

Claiming an abandoned property can be daunting, but it can provide an opportunity to own a property that would otherwise be unavailable.

How do you spot an abandoned house in the UK?

To effectively identify an abandoned property in the UK, you should keep an eye out for properties with a neglected appearance, overgrown gardens, and broken or boarded-up windows. However there are other ways of confirming the abandonment status of a property:

 

  • Check for unattended post: The accumulation of uncollected parcels and letters is a clear sign that the property may be derelict.
  • Engage with neighbours: Speaking to neighbours can provide valuable insights into the history of the property. They might have information about the duration of the property being unoccupied and any past attempts to sell or rent it out. 
  • Consult HM Land Registry: Utilise the HM Land Registry website to access property ownership details. However, it’s essential to note that the absence of registration does not guarantee abandonment. Consulting a conveyancer can help delve deeper into the property’s history. 

Contact the local council: Local councils often maintain records of abandoned properties within their jurisdiction. They can offer information on abandoned properties and their registration status.

What is the conveyancing process for abandoned property?

Once you’ve identified an abandoned property you intend to claim, the conveyancing process can vary depending on its registration status. This is the conveyancing process for an abandoned property:

 

  1. Confirm property registration: If the property is registered with the HM Land Registry, your solicitor or conveyancer will obtain the title information, which includes the current owner’s details and any legal charges or mortgages on the property.
  2. Unregistered property conveyancing: In the case of an unregistered property, the conveyancing process shifts to Adverse Possession Law. This law allows an individual to claim ownership of land or property if they have been in possession of it for a specific period, and if the original landowner has not taken any legal action to regain possession. Adverse Possession may take anywhere from a few months or several years.

In order to claim an abandoned property by Adverse Possession, you will need to follow:

 

    1. Documenting possession: Your solicitor or conveyancer will assist in documenting the period of your possession of the property. This documentation is crucial to support your claim.
    2. Notice to the landowner: In some cases, the owner may be notified of the intention to claim adverse possession. This notification serves as a precautionary measure before initiating the claim.
    3. Time to wait: The landowner will be given a set period of time to respond to the notice, if they do not respond within the timeframe specified then you may continue with the claim. 
    4. Application for Adverse Possession: Your conveyancer will guide you through the formal application process, which usually involves submitting an application to the Land Registry outline your claim and providing evidence of your continuous possession.
    5. Property registration: When the claim becomes successful, the property and land will be registered and registered to your name.

What are the risks when claiming abandoned properties?

There are many risks when claiming an abandoned or derelict house, the major one being that if the original landowner returns with proof that they are the owner, you will be unable to keep the property.

 

Furthermore, if you claim the property without the proper legal procedures and documentation then you may face legal action from the original landowner or local authorities.

Sell your derelict house online (for free)

Enquire for free

Can you buy abandoned property in the UK?

Yes, you are able to buy an abandoned property in the UK, but the process is not as straightforward as buying an occupied commercial or residential property. 

 

Although the buying process can be similar to the traditional way to buy a property, there are a few things to consider when purchasing an abandoned or derelict property:

 

  • You may need to obtain special permission in order to carry out renovations, extensions and demolitions of a house.
  • You may be unable to carry out modifications or face tight restrictions if the property is a listed building or has historical significance. 
  • You may need to get an environmental survey completed before you can carry out any work.
  • You will need to make sure that the property is habitable for residential and commercial tenants before it can be rented or leased. 
  • You may face a restrictive covenant in which landowners are prohibited from carrying out certain modifications of the property. 

 

You will also need to ensure that when you are looking to buy an abandoned property, you check how long the property has been derelict for, if it is weather and watertight and if it is connected to utilities such as water, gas, sewerage and if there any restrictions on renovating or demolition.

What hazards are common within abandoned property?

Abandoned and derelict properties are have often become infested with several nuisances or hazards due to a lack of human presence, non-standard construction or human neglect:

 

  • Pests like mice and rats.
  • Bats.
  • Squatters.
  • Ground heave or subsidence.
  • Asbestos or RAAC concrete.
  • Unwanted leaks, dampness, rot and mould.

Can you insure a derelict house?

You will be able to insure a derelict property, but most home insurance providers will only cover an abandoned property for 30 or 60 consecutive days. If this is not enough, then you will be able to get a Specialist Unoccupied Property Insurance that will offer longer protection. 

 

There will be conditions attached to either insurance policy, keep requirements for you to visit the property on a regular basis or keeping heating on at a minimum. If you do not plan on living within the derelict house or it is not habitable for a while, then you may consider researching different insurance covers.

How do you secure a derelict house?

If you become the proud permanent or temporary owner of a derelict house then you will need to protect it from both the weather, and from other humans. The potential issues from not securing your property may include vandalism, squatters, arson and theft. 

 

Other than getting the proper insurance on your derelict property, you will need to secure it, which can be done by:

Ensure that the windows and doors have working locks, and that are locked when no one is in the property. If there are any broken entrances to the property, you may consider boarding the windows and doors.

Homes that look untouched for extended periods of time may become a target for burglars, which is why you should use timer switches to turn lights on so they illuminate at different times. This could also be done using smart lights and smart plugs which can be controlled by your phone.

 

You may want to ask for help from a neighbour to the property to keep an eye out on the property and report any suspicious behaviour to either you or the police.

If you are renovating your property, make sure that any tradespeople or yourself don’t leave tools within the property.

Having a security system with a good alarm and CCTV system can go a long way when securing a property. You could think about adding a smart CCTV home system installed which will give you notifications to your phone.

Older properties can have several outbuildings including stables, garages, sheds and barns. You should ensure that all of these are kept as secure as the rest of the property, as some criminals will use these as an entry into your property.

If there are any skips or bins on the property, make sure that they are cleared on a consistent basis. Excessive rubbish and litter will make your property a target for criminals.

Ask the post office to hold your post until the property is habitable, or alternatively redirect your post to your current address. Vandals and thieves will be on the lookout for property with excessive amounts of post.

Enquire for free

Can you sell a derelict property?

Yes you can sell abandoned houses or derelict properties, but usually you might need to price it below market value due to the lack of renovations or modifications. 

 

Fortunately, there are a few avenues available for selling derelict properties. These include leveraging auction houses, finding cash buyers or working with an estate agent experienced in dealing with abandoned properties. 

 

Before listing the property, ensure it is safe and tidy to attract potential buyers. Making the building safe and addressing any outstanding liabilities or outstanding improvements is vital.

 

You may find suitable avenues in the UK housing market for the sale of derelict buildings or land for sale, including property auctions, privately owned portfolios, cash buyers and online estate agencies.

How do I sell my property in disrepair?

When your property is in disrepair and you prefer not to invest in renovations, there are still some strategies to sell your property. 

 

In the case of a property that has fallen into disrepair, you should seek professional advice from a chartered surveyor or structural engineer who will be able to conduct a survey of the property and let you know if the property is habitable or not – this will open or close your house selling options.

 

One option is to be transparent about the property’s condition and highlight its potential for investors or buyers looking for a renovation project.

 

Additionally, you could explore selling the property as is, emphasising its location, land value, or planning permission for demolition, which could make it an attractive investment opportunity for property developers. 

 

Alternatively, you could sell your property in disrepair to an online estate agent like us, who will be able to sell your property within 28 days. We work with a database of investors who will be able to either buy your property with cash, or be able to sell it on the open market at a more reasonable price.

How do I sell an empty property?

If you’re dealing with an unoccupied or empty property, the selling process can be relatively straightforward since there’s no need for anyone to leave the property. To streamline the sale, consider conducting a thorough survey of the property to identify any potential issues and disclose these to potential buyers upfront. 

 

Additionally, you should ensure that the property is well-maintained, secure, and is attractive in order to significantly enhance its market appeal.

What’s the best way to sell a derelict house?

The best way to sell a derelict house is to sell with us! We are a leading UK online estate agency with over 50 years of combined experience in the house selling industry. We can sell your property in only 28 days, and help you achieve the highest house price available.

 

We’ll go above and beyond to get your property sold faster, all while you benefit from an improved, streamlined service away from the traditional estate agents. You will be in safe hands as we cover everything from floor plans, photographs, write-ups, viewings and your legal fees.

 

Want to get the ball rolling?

Sell your derelict house in 28 days

Enquire for free
Posted on

How much value does an acre of land add to your house?

How much an acre of land

How much value does an acre of land add to your house?

Wondering how much value an acre of land might add to your house? Don’t worry we’ve got you!

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

If the pandemic taught us one thing, it’s that space is so important for a modern family. Home buyers want to buy property with large outdoor spaces in a bid to ensure they have ample room to grow in the future. 

 

Having additional land to the original property could add a massive amount of value to your home, but…

Sell your house with land for free

Enquire for free

How much value does an acre of land add to your house?

An acre of land can dramatically increase the value of your house, primarily because it offers a larger garden, which is a highly desirable feature for many potential buyers. It also presents an enticing opportunity for future developments, which is an attractive investment for potential buyers.

 

The significance of this value addition becomes even more apparent when the land is granted planning permission, sparing buyers the arduous and time consuming process of obtaining it themselves. 

 

Land with planning permission can enhance the market value of your property with a potential increase of up to 10%. In the UK, land usually represents around 67% of a property’s total value. For example, if a 1-acre plot is valued at £100,000, the acre of land alone could be valued at £67,000. 

 

The type of planning permission obtained for the land can also have a substantial impact on your property’s value. Securing permission for an extension can elevate your property’s worth by a substantial 15% to 30%.

 

Property Price Advice suggests that converting agricultural land into residential land can result in a staggering increase of up to 10,000% in its value. This transformation can significantly increase the overall value of your property, which shows the remarkable potential for substantial value addition when dealing with land assets. 

Enquire for free

What are the alternatives to adding an acre of land to your house?

Adding an acre of land to your property can be a significant way to increase the value of your home, especially if you’re planning to sell it. Potential buyers and estate agents often view larger lot sizes favourably, seeing it an opportunity for expansion, privacy or future development.

 

However, the extent to which it could add value depends on various factors like location and land usability. Adding an acre of land to your house is costly, and is much akin to purchasing another piece of property. 

 

To maximise the value of your property, you should consider home improvement projects such as a loft conversion or extending the living space. These extensions of space can increase your available space far faster and easier, and can get you on the market sooner.

 

Additionally, you could focus on essential upgrades like central heating, a new kitchen or even a fresh coat lick of paint to enhance first impressions and elevate the overall value of your home.

What actually is an acre of land?

An acre is a unit of land measurement that encompasses approximately 43,560 square feet. In the terms of land in agriculture, the dimensions diverge slightly, defining an acre as roughly 660 feet in length and 66 feet in width.

 

To put this into perspective, a building developer will be able to efficiently fit a minimum of 18 houses within the confines of a single acre of land. To add to this, the total area of England spans approximately 37.3 million acres, which equates to an astounding potential for 671.4 million houses. 

 

While it’s becoming less prevalent in contemporary housing, older homes often boast more spacious gardens, sometimes featuring plots as expansive as an acre in size.

Acre of land calculation

To determine the acreage of a piece of land, you’ll require the length and width measurements in feet. Multiply these dimensions to calculate area in square feet.

 

Next, divide this figure by 43,560 as this represents the equivalent of one acre in square feet, yielding the acreage of the land. 

 

Here is an example:

 

Let’s consider a plot with Length = 503 feet and Width = 669 feet. 

 

Area of land = 503 x 669 = 336,507 square feet.

 

Acreage = 336,507 / 43,560 = 7.725…

 

Rounded to the nearest tenth, the acreage is approximately 7.7 acres.

What is an acreage house?

An acreage house is a residential property that is located on a large parcel of land, often measuring an acre or more in size. The term acreage house is commonly used in the United States of America, and are often found in rural or suburban areas rather than densely populated urban centres. 

 

In the UK, we tend to know acreage houses as small holdings, homesteads and countryside cottages. 

 

Acreage houses offer residents a more secluded and private lifestyle compared to living in cities, and offer extensive gardens, lawns or even agricultural land. The properties tend to sway more towards traditional farmhouses. 

Sell your house in as little as 28 days

Enquire for free

How much is an acre of land worth in the UK?

The value of an acre of land varies considerably across the country, with Southern regions experiencing scarcity and higher prices compared to Northern areas.

 

Presently, in the UK, an acre of farmland usually falls within the range of £12,000 to £15,000. However, if your intention is to acquire the land for expanding your garden or starting a housing development or commercial development, the price will surpass these figures.

 

For those looking to enhance their garden with an acre of land, the minimum cost can start at £25,000 per acre, reaching as high as £50,000. Additionally, you will need to navigate the process of obtaining planning permission to change the land’s use from farmland to garden space.

 

Furthermore, when purchasing land, you might encounter something called Overage, where the seller retains the right to claim a portion of your profits if you profitably develop the land. This could entail a pre-agreed sum to compensate the original landowner in the event of successful property development.

How much land value does planning permission add to your house?

Acquiring a plot of land with pre-approved planning permission is an exciting prospect for potential buyers, as it signifies future potential for the property. This planning permission can encompass various improvements, such as a house extension, a swimming pool, an outbuilding or even an additional property for rental purposes.

 

Land with planning permission already obtained carries an even higher price, potentially reaching £300,000 in Northern areas and a staggering £1 million in Southern areas.

 

Many homeowners who secure planning permission prior to selling their properties have managed to achieve sales prices of up to 10% higher than they otherwise would have. Coupled with the added acreage or plot of land acquired, this can significantly increase the value of your property.

Does buying land always add value to your home?

Well, the extent to which buying land increases your home’s value depends on several things:

 

  • Location and condition: If the land is in a prime area with attractive features or amenities, it’s likely to add more value to your property.
  • Existing land: You should consider how much land you already have, adding more land can be beneficial but the impact on value will depend on the size and usability of the additional space. 
  • Property value: The current value of your home matters, in some cases, adding land can significantly boost the overall value, especially if it complements the existing property.
  • Parking potential: If the land allows for off-road additional parking spaces or has space for a garage to be built, it can contribute to your property’s value.
  • Local land supply and competition: The local housing market and the availability of land for sale can also affect the value increase. If land is scarce and in demand, your property’s value may see a substantial boost.
Enquire for free

How do you value a plot of land?

Asking prices for land parcels are frequently based on individual opinions, reflecting what the market is willing to pay rather than the land’s true value. While this approach is not inherently flawed, it can lead to overpayment if the associated costs are not thoroughly understood.

 

The market value of a plot can change massively. Prime locations with favourable attributes are in high demand, when such plots become available, buyers are more willing to pay more for the opportunity to build on them. 

 

To assess the potential value of a plot that can be developed or redeveloped, you can use the following formula:

 

End value – Development costs – Desired equity = Plot value

 

First, you estimate the expected worth of the completed house you intend to build. Then you identify and deduct all expenses associated with designing and building the house. THe remaining amount represents your desired development profit or equity, and it informs the maximum amount you should be willing to pay for the plot.

 

However, this seemingly straightforward calculation is highly sensitive which can lead to valuation complications, like anticipating the type of house that can gain approval from the local planning authority. 

 

The land value calculation can be complex, which is why for each plot you will need to consider:

You will need to consider what the plot can support in terms of planning approval. Avoid basing end values on designs that may overdevelop the plot, as such plans may not gain approval.

This could include all expenses associated with constructing your home, including professional fees, design services, build costs, materials, labour and route to build costs.

There will be numerous fees during the development of a plot, including planning fees surveys, Stamp Duty tax, CIL (Community Infrastructure Levy) and allowances for site insurance and warranty provision.

The cost of building the same house can vary between plots due to site-specific issues, like foundation requirements, service connections or dealing with demolition.

Accounting for unforeseen costs is essential in a plot’s valuation. Contingency allowances typically range from 10% to 15% of construction costs.

You should consider the impact of personalising your home on its value. Features that make your home unique may or may not add value, and they could influence future resale potential.

Equity reflects the profit you anticipate from your efforts in developing the plot. This aspect is subjective and varies among different buyers. Some, like builders or developers, prioritise profitability, while others, such as self-builders may be more interested in creating a unique home. The level of equity deduction, if any, depends on your goals and willingness to pay.

How to sell my house with an acre of land in the UK

If you’re looking to sell your house which has an acre or more of land, then why not use an online estate agent like us? We can help you sell your house in as little as 28 days while making sure you get full market value for your home and land. 

 

We can offer an esteemed customer service experience, away from the traditional estate agent process. Our process is seamless and hassle free, and we have over 50 years of combined experience in the house selling industry.

 

Not only will we do everything in our power to ensure you get the best price for your property and acre of land, we will also cover all your marketing and solicitor fees. This means that the house selling process is completely free for you!

Sell your house without all the hassle
Enquire for free
Posted on

Selling a fixer upper house without having to renovate

Child within a fixer upper house

Selling a fixer upper house without having to renovate

Is selling a fixer upper house without renovating the way forwards?

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

Selling a house can be a complicated and often emotionally draining decision, and when that house happens to be a fixer-upper, the process can become even more daunting. The idea of renovating a property to perfection before listing it for sale is a common misconception that many homeowners hold. 

 

However, the good news is that you can successfully sell a fixer-upper home without undertaking costly and time consuming renovations. 

 

In this article we’ll explore how you can navigate the open market, how to enlist the expertise of expert real estate agents, and leverage the growing market demand for fixer-uppers to sell your home efficiently and profitably.

Enquire for free

Selling a fixer upper house without having to renovate

According to Statista, in 2020, around 21,400,000 UK households were built before 2000, meaning almost 86% of the UK housing stock is not classed as a new build as they will have had more than one owner. 

 

Older housing is more likely to need a renovation, remodel or fixing up due to the wear and tear of family life, older construction processes and natural erosion. According to Money.co.uk, in 2022, 88.1% of UK households underwent some form of renovation.

 

But, house renovations can cost upwards of £70,000 which is way outside of the average UK annual salary, bringing us to one question: Selling a fixer upper house without having to renovate — is it a good idea?

 

Well, although slightly biased, we would argue that yes, yes it is! You will easily be able to sell a fixer upper house without needing to renovate. Find out more below…

Is it worth renovating a house to sell?

Renovating a house to sell, may reap you benefits like a higher selling price or more interest from buyers but the time and investment you put in may not appreciate in the way that you wish.

 

Many renovations take months to complete, and can sometimes take far longer than expected if issues arise within the property. You could spend far more renovating the property than you make when you put it on the market. 

 

We would always recommend making sure properties look presentable before you put them on the market, but that doesn’t necessarily mean you should renovate. It could just be making sure there are minor repairs completed, the building is clean of any rubbish or even just has a fresh coat of paint. 

 

Furthermore, if you are looking for slightly more when selling your fixer upper house, you could try and obtain planning permission for a single storey house extension, which could drive your house price up by 10%. 

 

Alternatively, you could purchase an acre of land, or piece of land to extend the garden. If you live in an area which has limited land supply, then this could drive your house price tenfold.

 

Many of the people we sell houses to are used to taking up the mantle of fixer upper homes, so you don’t have to!

How do you value a house that needs work?

When you look to sell your house that needs work, you should look to get an honest valuation of the property. The extent of the repairs needed on the property will drastically impact the valuation you receive, so you will need to bear this in mind when you put it on the open market. 

 

Usually, fixer upper houses are seen as less desirable properties to the vast majority of potential buyers, which can lead to lower offers and longer times on the market. But, luckily, fixer upper houses are sought out by niche buyers who look to flip property and turn a profit.

What is a property flipper?

A property flipper is someone who purchases a property, often below market value, renovates them and then sells them at full market value. They can act as a lifeline for people with run down properties, as they will be actively looking for properties that can make them great returns. 

 

Property flippers are often well versed in buying and selling a fixer upper house, and will know exactly what properties to look for. Property flipping is a form of investment strategy and so different flippers will have different target houses, some will look at minor fixes for quick flips, while others will look for run down barns for amazing conversions.

How do you calculate the market value of a property?

When looking to put your house on the market, you will need to provide an honest valuation of your fixer upper house. You can use the average from three or four estate agent valuations to formulate a rough valuation, and then combine this with local housing market data. 

 

If your house is in a neighbourhood with other properties on the market, then you should ensure that your property is similar to theirs. But, you will also need to factor in the fact your property needs renovating. This could mean your valuation is 5-15% lower than your neighbours.

Enquire for free

What factors can affect a house valuation?

When it comes to selling a fixer upper house, determining its value can be a challenging puzzle, where every missing piece – whether its the state of repair, location or market trends — plays a vital role in the final picture. 

 

But, there are also numerous factors within a property that can affect how much it sells for on the open market, here are just a few:

Cracks in ceilings, walls and uneven floors

£13,500 fixing costs.

While most cracks are harmless and are just a normal occurrence, dramatic wide and deep cracks in ceilings and walls have the potential to knock thousands off your home value. Depending on the severity and extent of damage and whether or not it suffers from subsidence, could dramatically affect your house valuation.

Poorly installed windows, doors & insulation

£1,500 fixing costs.

Windows, doors & insulation play a crucial role in a property’s energy efficiency, if any one of them is poorly installed then it allows drafts, and the heat/cold transfer — dramatically increasing energy bills. Furthermore, poorly installed windows and doors could compromise on a building’s security.

Asbestos

£2,500 removing costs.

Although Asbestos was banned in 1999, many of the UK’s older housing stock may include Asbestos due to it being a common building material.

Damp & mould

£2,300 fixing cost.

Dampness and mould are not only an eye-sore but can also be a health hazard. They indicate that the house has moisture-related issues in the house, which could be due to poor ventilation, plumbing issues or leaks. The presence of damp and mould can reduce a house’s value as buyers will factor in the cost of remediation.

A leaking roof

£7,000 fixing cost. 

A leaking roof is a critical issue with a property as it can cause damage to the interior of the house, including the ceiling, walls and flooring. Roof repairs or replacements are often costly, and a leaking roof will lead to a lower house valuation.

Japanese Knotweed

£3,000 removing cost.

Japanese Knotweed is an invasive plant that causes damage to the foundation and structure of a house. Its presence can be a significant concern for buyers and mortgage lenders, with some lenders even refusing to provide mortgages on properties with an infestation.

Enquire for free

Is it worth buying a house that needs updating?

Buying a fixer-upper house offers you an avenue to enter a neighbourhood that might otherwise be financially out of reach due to soaring property prices and steep mortgage rates. By purchasing a property in need of renovation, you can often acquire it at a considerably lower cost compared to its fully renovated counterparts in the vicinity. 

 

Depending on the property’s initial purchase price and its individual renovation requirements, it may make financial sense to buy an unrenovated property and invest your own resources, both in terms of money and effort to transform it. The goal is not only to bring it up to par with the other homes nearby, but to potentially exceed their market value.

 

Renovating a fixer-upper, especially focusing on key areas such as kitchens and bathrooms, can yield an immediate increase in its value. These are the rooms that potential buyers often scrutinise closely when looking at properties.

Is it cheaper to buy a fixer upper?

On a whole, yes — opting for a fixer upper in a neighbourhood characterised by higher property prices can be a more budget-friendly choice. The rationale behind this is that the estimated renovation expenses are factored into the house’s valuation, resulting in fixer upper homes being priced below the prevailing market value.

 

In practical terms, this means that fixer upper homes can be listed at prices up to 15% lower than their fully renovated counterparts. For instance, on a property valued at £250,0000 this translates to potential savings of up to £37,500. However, the real financial potential lies in your ability to transform the house to a higher standard.

 

We’ve witnessed instances where homes have sold up to 30% more than neighbouring properties purely because the owners invested in improvements such as constructing a driveway, adding an extension, or converting the loft. 

 

Such enhancements can deliver a return on investment that significantly surpasses the initial outlay – up to 45% or more. Even after accounting for reconstruction expenses, you could potentially find yourself looking at a profit margin of approximately £70,000.

 

Did you know that we don’t just sell properties, we can also help you buy houses too? Many of the properties that we help sell are in need of renovation, if this is something you want to get involved with then contact one of our team who will be able to help you in your journey.

Is it worth renovating a house before selling UK?

Renovating before selling a fixer-upper house is completely your choice, your house may sell in the blink of an eye no matter what you do. But, if you have hesitations about how fast you can sell your house, it may be worth weighing up the pros and cons of renovating your house before selling it.

Enquire for free

The best way of selling a fixer upper house

When faced with the prospect of selling a fixer upper house, the thought of starting an extensive renovation can be daunting. The good news is that you have alternatives – ways to sell your property without the need for a renovation project.

 

If you lack the time, inclination, or resources to transform your fixer-upper into a showcase home, there are several viable options to explore; via a house buying company, an auction house or the expertise of an estate agent.

Is it worth selling your house to a house buying company?

House buying companies, or sell house fast cash buying companies, specialise in purchasing properties in their current condition. These companies will typically have their own cash reserves and are experienced in dealing with fixer-uppers. 

 

They offer a convenient and swift solution for homeowners who want to sell without their burdensome renovation process. The advantage lies in the simplicity  and speed of the transaction as these companies are often ready to make cash offers, saving you time and effort. 

 

However, cash buyers purchase normal properties below market value, meaning properties that are in need of renovation may take a large hit (leaning towards the 15% – 20% below market value).

Is it worth selling a fixer upper house at an auction?

Selling a fixer-upper house at an auction can be an effective way to sell it without renovation. Auction houses provide a platform where potential buyers can bid on your property. Fixer-uppers often attract investors and individuals seeking unique opportunities. While your property’s sale price may vary depending on the level of interest it garners, auctions can offer a competitive environment that might result in a favourable sale. 

 

However, if you sell your property via an auction house there is a chance that your property will not sell at auction because potential bids do not meet your reserve price. This could mean that your house does not sell, and you’re left having to pay auction fees anyway.

Is it worth selling a fixer upper house to an estate agent?

Engaging in the services of a seasoned estate agent is a classic yet reliable method to sell your fixer-upper. These property experts possess a wealth of experience in marketing and selling properties of all conditions. 

 

A skilled estate agent can help you accurately price your home, market its potential and connect with prospective buyers who are open to the idea of taking on a renovation project. They can also negotiate on your behalf, ensuring that you get the best deal possible. 

 

However, finding prospective buyers who are interested in renovation property is quite niche, especially on the open market. Many property investors who are looking for these types of houses are looking off-market on property sourcing platforms. 

 

Moreover, estate agents work on large commission based fee structures of up to 3%+VAT, this could mean that if you sold your property for £225,000, you would pay up to £6750 worth of fees. 

 

Most estate agents will also fix you into a contract of 12 weeks or more, in which time you can only list your property with them. If they are unable to sell it within those 12 weeks, then you will be faced with estate agent fees and the struggle of having to find another estate agent to sell with.

Is it worth selling a fixer upper house to an online estate agent?

Selling a fixer-upper house with an online estate agent means that you can sell it completely online. They often work on a more competitive fee basis, when compared to high-street estate agents. This could range from a fixed fee of around £1,000 or 1% of the selling price. 

 

Online estate agents often provide a streamlined and convenient process for selling your home. You can manage your property listing on Zoopla and Rightmove, communicate with potential buyers online, and coordinate viewings that suit you.

 

Due to the online nature of the estate agents, they offer a broad online presence, being able to reach more potential buyers across the country, which puts more eyes on your property. This increased visibility can help attract more property renovation minded buyers. 

 

However, online estate agents are very hands-off when it comes to selling your property. They will make you do much of the grunt work, while taking in a commission or fixed fee for letting you use their platform. 

 

We’re not like that. We are The Property Selling Company, and we are an online estate agency that believes selling shouldn’t be complicated. 

 

We can sell your house in as little as 28 days, or on a timescale that suits you, all while getting you a selling price that meets your expectations. We will handle all the paperwork, marketing, conveyancing, negotiations and house viewings for you, all while making sure you are left in the loop at all times. 

 

Instead of asking for a commission or fixed fee for using our service, we will cover all the costs associated with selling a fixer upper property. 

 

Want to get started with selling your house today? Simply get in touch with one of our team below:

Enquire for free