How much below market value would you expect ‘fixer-upper’ to be?

[Birtwell]

Just that really 😊 by fixer upper I mean in need of new windows, door, kitchen, bathroom, plastering, wood chip removing, etc as basics

How much below market value do you think it needs to be to take on a project?

Market value is a hard thing to reveal in a general sense - where in the country, how big is the house, what standard would you want to bring it up to? I often can't believe how little property developers spend on renovations.
I'd be looking at £60K-80K to do what you want to do, we're buying a house, I wouldn't have chosen their style but I can live with it but I wouldn't pay £80K for it. And anything I've seen as s doer- upper has been priced accordingly and has still gone for offers over.

Just add up the cost of the work you feel it needs and take that off the price if a similar done up property in that area.

Right now - 25% above market value where I am.

I agree with @Chatwin many people are paying to be able to have exactly what they want rather than paying a premium for someone else's improvements that they don't like!

There are too many variables to be able to give a answer. Fixer uppers are usually snapped up sharpish, so I’d bare that in mind also

*an answer

In the West Midlands they generally go for the same amount as a non fixer upper.

Often not much less! Also I think people find a bit of “romance” in a project and will pay a premium to be able to create the dream rather than have to work round someone’s shit.

Agree with not much less. When I was house hunting it put me off when interiors, bathrooms, kitchens etc were recently renovated to not exactly my taste!

We are in the process of buying 'fixer upper' no.3.

All needed a complete re-wire and only just habitable.

First and second one we offered 10k under because the market was very slow at that time.

Third one we offered full asking because the market is fast and it is an absolute bargain.

Also, remember that any work is more expensive and harder to source at the moment.

And that houses are an absolute money pit.

The market value would generally reflect the work that's needed in my area.
Something that's in reasonable condition but a little dated or needs polish would be more more a house that needs a new kitchen/bathroom ASAP.

Fixer uppers tend to sell well because you're not paying a premium for other people's decor, which lots of people will change anyway.

Hardly anything below these days, a fully modernised house might be worth £150k yet a doer upper needing perhaps £30k-£40k spending on it will still have an asking price of probably £140k.

It makes very little difference. Location, location, location (and sun aspect, and location).

It' would be market value if "done up" less the cost of the work that needs to be done, less say another 10% for the "hassle" factor of project managing the work.

Very few houses are true fixer-uppers in the sense that they’re impossible/uncomfortable to live in until works are complete. These are the ‘bargains’ depending on how experienced you are.
Most are structurally sound but need cosmetic updates (like the one you describe). These actually go for a premium because of the current obsession with redecorating

Where I am, the only real bargains are houses in such bad condition that they are unmortgagable
So can only be sold to cash buyers and therefore need to be quite heavily discounted

Others are priced at full market value minus about 80% of the cost of the work

@SW1amp

Where I am, the only real bargains are houses in such bad condition that they are unmortgagable So can only be sold to cash buyers and therefore need to be quite heavily discounted

Others are priced at full market value minus about 80% of the cost of the work

That’s actually not bad. Where I rent (grammar school area) those in the second category dont go for much less, but the stock is low to begin with

ARGhhh this is what I hate about housing everything is so area specified! 🙄

Ever since programs like property ladder and homes under the hammer started people have paid way more than they should have for doer uppers, most of the time a rising market bails them out.
But for example say a done up house is worth 500k, full refurb would be 50kish, so you would think a fair price would be 425 ish to pay for the works and the disruption, buy 9 times out of 10 people will pay more like 475 to 490k, completely underestimating how much building work costs, and that is before construction prices have almost doubled this year
Some people see it as a price worth paying to get their ideal home though
But there are no bargains to be had

@Alexalee

Ever since programs like property ladder and homes under the hammer started people have paid way more than they should have for doer uppers, most of the time a rising market bails them out. But for example say a done up house is worth 500k, full refurb would be 50kish, so you would think a fair price would be 425 ish to pay for the works and the disruption, buy 9 times out of 10 people will pay more like 475 to 490k, completely underestimating how much building work costs, and that is before construction prices have almost doubled this year Some people see it as a price worth paying to get their ideal home though But there are no bargains to be had

I wonder whether the current climate of Brexit leading to a builder etc shortage will reverse this trend? Houses in general were flying off the shelves but this has cooled considerably post stamp duty holiday and as we approach Christmas. What next year brings remains to be seen

Fixer-upper don't sell for below market value (nothing ever sells for below market value unless the vendor decides to). They have a lower market because they need work.

How much is the market value of a house in the same location which doesn't require any work?
How much would the work cost in order to make it the same value?

Then, what is the subjective cost (inconvenience) to you of having to do the work?
You may want to knock off a bit more due to uncertainty.
That is the price you would be prepared to pay.

You may be able to buy for less than you are prepared if there aren't many others buyers.

I am surprised that people are suggesting you can't get a big discount for the work required. If that were the case, sellers wouldn't have work done before selling, and buyers wouldn't be able to negotiate reductions based on surveys.

I think it's going a bit far to say a house that needs work will sell for a similar price to a renovated one. Generally people choose a doer upper as they'll get slightly more house/better area for their money. It's ridiculous to say that if there were 2 identical houses down the same street, with equal plots and one was renovated and the other not, that people would opt for the one that wasn't 'done'. You do pay a premium for a modern kitchen/bathroom etc... which is why people who want to put their stamp on things are reluctant to buy such a house. But the discount you get for a property in need of work is probably nowhere near what the what the work will cost, especially with the rising costs of labour and materials currently. The extra money you'd need is worth it to some as they get everything to their taste. Which is why doer uppers are snapped up.

@MissFritton65

I agree with *@Chatwin* many people are paying to be able to have exactly what they want rather than paying a premium for someone else's improvements that they don't like!

Yeah same here. If a perfect house would be £500k but it will cost £100k to get it to that stage then around here you’d expect to pay £450 ish and not recoup.

In my part of London it would be about the same as one that didn't require much work as long as it was structurally sound.

To be honest I wouldn't call what you are describing a 'fixer upper'. Those are just basic updates that need doing every decade or so depending on tolerance and tastes.

I once viewed a house that had 50 year old electrics and a crack down the middle. That was a fixer upper.

Doesn't market value take the condition into account anyway? Therefore a doer upper is no more likely to sell under it's market value than a pristine house. The work has already been taken into consideration when it was valued. Unless something hideous and unseen comes up during the survey of course.