Price for a barn
Discussion
I'm thinking of buying an old brick barn in Shropshire, 200m2 with planning permission to be a house. Asbestos cement roof, otherwise sound-ish. The vendor wants £80k, which does not seem unreasonable when I look at other such buildings for sale on Rightmove.
Does that price seem high? I know it's not much information to go on, but roughly...
Does that price seem high? I know it's not much information to go on, but roughly...
You'd need to work it back to get a proper value.
Either A
- Speak to a surveyor who will tell you categorically his opinion of what it's worth in its current form and a complete report detailing why
or B
- Look at the end, completed value for the property, if no direct comp's take a look at a similar range of properties across a wider area. Get a quote or an opinion on the cost of developing the barn to fully reflect the current planning permission and any costs/fees associated with the purchase. Add 20-30% to this number to reflect both a contingency for the work and a "developers margin" to account for the extra risk you are taking on by not buying the finished, warranted article. Take this cost from the expected completed value to give yourself an idea of the value of the barn in its current state.
Either A
- Speak to a surveyor who will tell you categorically his opinion of what it's worth in its current form and a complete report detailing why
or B
- Look at the end, completed value for the property, if no direct comp's take a look at a similar range of properties across a wider area. Get a quote or an opinion on the cost of developing the barn to fully reflect the current planning permission and any costs/fees associated with the purchase. Add 20-30% to this number to reflect both a contingency for the work and a "developers margin" to account for the extra risk you are taking on by not buying the finished, warranted article. Take this cost from the expected completed value to give yourself an idea of the value of the barn in its current state.
kiethton said:
You'd need to work it back to get a proper value.
- Speak to a surveyor who will tell you categorically his opinion of what it's worth in its current form and a complete report detailing why
That's a good idea. It's not easy for me/my surveyor to access the inside though.- Speak to a surveyor who will tell you categorically his opinion of what it's worth in its current form and a complete report detailing why
montecristo said:
kiethton said:
You'd need to work it back to get a proper value.
- Speak to a surveyor who will tell you categorically his opinion of what it's worth in its current form and a complete report detailing why
That's a good idea. It's not easy for me/my surveyor to access the inside though.- Speak to a surveyor who will tell you categorically his opinion of what it's worth in its current form and a complete report detailing why
If so the agent will be used to accommodating valuers, par for the course for anybody that requires a mortgage
In a rational market a barn with PP is worth less than land with PP as it constrains you and will generally cost more to underpin, re roof, point up etc than it would to start from scratch.
However it very much depends upon it's condition, location and the size / design of the barn and it's proximity to other barns etc
I recently bid £415k for a 4000sqft barn that I thought I could easily sell for £1M and I was considerably outbid.
However it very much depends upon it's condition, location and the size / design of the barn and it's proximity to other barns etc
I recently bid £415k for a 4000sqft barn that I thought I could easily sell for £1M and I was considerably outbid.
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