Our last article focussed on issues to think about when buying an unmodernised property. However, sellers should also be careful when considering the sale of a property in need of renovation.
Firstly, unmodernised is unmodernised! It is usually a waste of money to make improvements to a property on which people will want to do their own thing, and you could well fall between two markets. Certainly clear away an overgrown garden and remove whatever debris you can from the house. Preventative maintenance such as repairing a leaking gutter (miniscule cost to repair, but huge consequences if left unattended to) should also be undertaken.
It may well be that you have several buyers, which potentially puts upward pressure on the price. However, a surveyor might possibly “downvalue” the property, especially if his estimate of the renovation costs is higher than the buyer’s or there are no comparable sales in the vicinity. This can be an issue, particularly where the buyer is seeking a large loan to value ratio (LTV), the result of which could render the property unmortgageable at that level.
We always ensure that we know what our buyers position is, for example if they have a property to sell, what amount of mortgage are they applying for, will they be applying for planning permission before exchange of contracts, all these questions help eliminate the possibility of a sale falling through at a later date.
So it is always worth considering the position of the buyer in context, ideally knowing as much information about a buyer up front. We have sold many properties in poor condition over the years and have the knowledge and expertise to advise on what type of offer may be best to accept.