Homes that require major structural work have asking prices which are on average £40,000 below the market norm, according to research based on estate agents’ responses.
Research conducted amongst 100 estate agents found houses needing major works can be purchased for around 17 per cent less than the market average.
In comparison, houses requiring only minor structural fixes can be purchased for £13,500 or six per cent less than the market average for the property.
Direct Line, which commissioned the research, says agents highlight there is still money to be made in flipping properties, with 62 per cent believing buyers can capitalise on price reductions if renovations are required and make a profit even if a house requires structural work.
However, there are considerations depending on the area, as one estate agent located in Bristol reported that there can be consequences with higher value properties: “Stamp duty has eroded the value of any profits.”
Direct Line claims that when planning to add value to a property, sellers can boost the resale price by £9,980 on average by redecorating every room.
The best single room to renovate (rather than merely redecorate) is the kitchen, which alone can add £9,275 to the value of the property. Renovating the bathroom on a property can add £7,532 to its value.
Direct Line’s league table, based on the agents’ comments, looks like this:
- Redecorating every room - £9,980;
- Renovating the kitchen - £9,275;
- Renovating the bathroom - £7,532;
- Renovating original features - £7,358;
- Adding modern accessories - £6,071;
- Refurbishing the property’s exterior - £4,500.