Bemused by valuations

p00pieb0tt0m

We have a 3 bedroom house to sell. It needs new kitchen, new bathroom(downstairs), rewiring, approx ½ replaster, little work on roof, decorating throughout.
We've had 3 valuations. £110,000 £115,000 and £125,000. All the estate agents said work would cost between £30,000 and £45,000, and then the value would be £160,000.
Are buyers really buying houses to throw money at to live in? Especially at this price level.
Are developers really buying houses where there's no profit?
Are estate agents living in a different universe?

Mr.Generous

Some agents tell you what they think you want to hear to get your business.

user1977

"Needs" as in "uninhabitable until the work is done" or just "nice to have" improvements which an owner-occupier could deal with as and when they have the time/money?

Herzlos

Most of that sounds like someone could move in and decorate/renovate over time. They'll want a reduction in price vs having the work done but it's totally viable.

There's probably not enough profit for a developer/flipper unless they offered you something insulting like £80k. Someone might take a gamble at buying it to do work on the cheap for a quick profit, or to rent out or whatever.

It's also worth noting that what may cost you £45k may cost someone in the trade half of that if they already have the tools and can do a lot of work themselves or get help from friends in other trades.

david29dpo

Mr.Generous said:

Some agents tell you what they think you want to hear to get your business.

This. Plus....
Valuing a "normal" house is easy for an agent (or anybody) they just look at the sold prices, no skill there.
Anything "different" is more tricky, as you have found out.

 In my day i took the likely selling price when done up to a good standard, minus the cost of the work. Use that as a starting point to sell as it is.

Sapindus

It sounds a bit like the house I'm buying, except I'm spending £174k.  The decor, bathroom and kitchen are livable for the time being but I need to spend some money on the roof, drive, and rewiring.  I've got enough money in savings to do most the work that NEEDS doing, and the "nice to have" stuff can wait a while because at that price I'll have no mortgage so am saving the money I used to spend on that.  I haven't really thought too hard about how much the house will be "worth" once the work is done, that's not my reason for doing it, I want a house that suits me and scenarios where I have to sell it again before I've enjoyed the improvements aren't worth tying my brain up in knots over. 

So yes there are people out there who have money to throw at a "doer-upper".  In your place I would go with the estate agent who suggested the lowest price, and tell them they were the lowest so you're not going any lower.

p00pieb0tt0m

user1977 said:

"Needs" as in "uninhabitable until the work is done" or just "nice to have" improvements which an owner-occupier could deal with as and when they have the time/money?

It has a working boiler and is watertight but the kitchen is literally falling apart, the toilet is usable but the bath and basin are 'free' from the wall. I wouldn't want to move any possessions in so if you moved in it would be glorified camping.

FlorayG

I sold a house for £200k. The buyer almost gutted it (it was livable but old fashioned) put in gas central heating, new kitchen, bathroom, replastered, new flooring, fitted wardrobes; he was single so lived with a friend whilst he and his 'mates' did the work. He sold it 6 months later for £260k. This is how he makes a living, doing up one house at a time. £30k+ income for 6 months work sounds OK to me

RAS

p00pieb0tt0m said:

user1977 said:

"Needs" as in "uninhabitable until the work is done" or just "nice to have" improvements which an owner-occupier could deal with as and when they have the time/money?

It has a working boiler and is watertight but the kitchen is literally falling apart, the toilet is usable but the bath and basin are 'free' from the wall. I wouldn't want to move any possessions in so if you moved in it would be glorified camping.

What's the electrics like. That's probably the most important thing. 

You can install a basic kitchen quite cheaply but the electrics would cost as much. 

Mr.Generous

FlorayG said:

I sold a house for £200k. The buyer almost gutted it (it was livable but old fashioned) put in gas central heating, new kitchen, bathroom, replastered, new flooring, fitted wardrobes; he was single so lived with a friend whilst he and his 'mates' did the work. He sold it 6 months later for £260k. This is how he makes a living, doing up one house at a time. £30k+ income for 6 months work sounds OK to me

I wish it was that easy. I renovated a few without ever moving in and the workload is tremendous. He might have found a way to make it work but with all the work listed plus legal costs, agent fee's, council tax and utilities he won't have made 30k. I've not renovated to sell for a few years but costs will have risen, and I cant imagine any of that work being cheap.

[Deleted User]

Plenty of trades are looking to buy homes that they can do up in their spare time.
Either to craft a home exactly to their liking, or to add value and flip, hoping to move up the housing ladder.
From what I can see, both are excellent strategies if you've got the skills.

You might even find a builder who wants a btl as their retirement fund, or even helping their kids onto the housing ladder.

I don't think it's an unusual proposition, folk still want 'doer-uppers'.