Renovated house value

Author
Discussion

jeevescat

Original Poster:

880 posts

213 months

Monday 17th May 2010
quotequote all
I hope you guys can help on this one, I know property valuation via internet forum is a non starter, but I'm looking for some help in the theory of the piece.

2 adjoining turn of the century terraced properties, 3 stories, 4 bedrooms, almost identical design layout and construction. One is in a bit of a state and needs major updating and renovation work, we're talking about 50k, and the other is in very good order, with a modern contemporary feel.

How far apart do you feel their current values should be, bearing in mind as I said the need for about 50k to get the one to the other?

vxsmithers

716 posts

202 months

Monday 17th May 2010
quotequote all
area of the country will be the biggest deciding factor - you could throw 50k at something and only get a 10k return or less depending on what you do and where...

Dr_Gonzo

959 posts

227 months

Monday 17th May 2010
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Most renovators look to make a 20% return. So work backwards from this and you should get it's current value.

robsartain

144 posts

180 months

Monday 17th May 2010
quotequote all
The difference depends on how much work ? and cost of materials ?

Does the one that needs renovation need new bathroom, kitchen and a lick of paint or does it also need new boiler/central heating, damp issues sorting, structual, extension to make it the size of the renovated property.

I think you will need to give us a bit more info... Will you do the work yourself or do you know a good builder ?

Maybe get a builder to look at it, and price the job, add on 10% contingency and then take off that, and then offer 10-20% lower again on the price. (There is no magic formula I know of)

jeevescat

Original Poster:

880 posts

213 months

Monday 17th May 2010
quotequote all
Thanks for the replies.

House needs kitchen and bathroom, all windows replacing, fair bit structural work on an existing extension which is in poor order, one major wall coming out internally. Some wiring, juries currently out on the boiler, and a lot of plastering.

Most of the work will be done by us, got a couple of good friendly builders who will help with some of it.

Thing I find questionable is the values being touted by agents, our costs for the work are going to be a lot less than a builder doing the whole job, yet I am struggling to see enough daylight between the refurbed/untouched prices even for us to justify it.