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?

@CellophaneFlower

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.

This is an interesting point. Market value of course means whatever people are prepared to pay. But in my head 'market value' is what the same house would have sold for in a reasonable condition.

However in my area suitable houses are far and few in between and I've seen houses that need a bit of work doing going for a lot more than they should. No two houses are exactly the same but a 10K difference in the closest comparable as opposed to at least 30K (the minimum needed to bring the so-called 'fixer-upper' to the same standard).

Also a lot of people wanting to buy but can't find anything ... there's another thread on here about that too

Yes, I meant how much below a similar property on the same street that has been modernised. Interesting to hear that they sell for a similar amount regularly. To clarify I’m talking about a house that hasn’t been touched in 30-40 years not 10, the sort with 70s carpets, woodchip and steel windows 😅

Yes...but the windows may be something that has to be done...other bits less so. How is the houses priced compared to similar?

Presumably the market value of this place would be less than the market value of one more done up, but not another percentage off that?

Difficult to say without seeing the house.

As a rough guide, how much are the other houses selling for (or have sold for) on the street?

Bottom line you won't get much off because the ea and the seller probably think you can buy new kitchen, bathroom, windows, re wire, re plumb, re plaster and redecorate for under 10k because that's what everyone seems to manage to do it for on homes under the hammer

Agree, it's really hard to say. We tried to buy one recently. It was listed with a guide price of 650K. We offered 725. It still wasn't enough. It was questionable if it would even be mortgageable, needed a new roof, there were holes in the ceiling in various places.

Hi OP, realise I may be telling you what you already know, but just in case!

If it 'hasn't been touched' for decades decoratively, then it's almost certain that it needs a complete re-wire, and likely new boiler and radiators throughout/or fit your eco heating system of choice if you can afford to! For our 3 bed terrace those costs were £5K new GCH heating, £5K electrics and £2K plastering over where the trades had gouged into the walls to run wires/pipes.

Just a heads up in case your maths is £12K out before you even start fixing up... :)

It’s hard to compare because it’s a 2 bed broken down detached bungalow and every other house on the street has been extended and updated to 4 bed open plan, sharp finish … so a lot more. Part of the appeal is that we could do one day.

Those are some scary figures to add in Woolymamouth 😳

Wouldn't it be more beneficial for you to ask an estimation of the work needed, then see if it fits with your budget? After all, you must have some idea of what property is going for in your area?

But also depends on how hard it is to get a house on that street and the current market is bonkers - we entered it thinking we aren't doing that bidding war thing - 3 rejected bids later - we entered the bidding war and we won by paying 10%over - nothing similar on the market, if you can wait maybe things will be different.
Our current house was a doer upper - we paid £500k and house down the road was £610k updated but not extended - we spent £200k on it and it's a bigger more attractive house now but we lived with the shit version for years while we scraped together the cash for the renovation - we transformed a 60's house into a modern home - it took too long though, I'd want to have the money to fix the house immediately now - I've grown impatient with age.

Oh the context is that I saw house for sale, looked at what I thought it’d sell for in good condition, costed up the work that would need doing and offered that. It was rejected but it’s still for sale. I was just wondering for future reference if I’d got it wrong? I’m a bit ambitious in what I want for my budget. I thought buying something like this could be my opportunity …. But perhaps not 😊

Here in East London, they go for same price or even more as so few come up for sale now...!!

I’ve put my parents on the market recently
It sold within a week and I had 5 or 6 offers and went for 20k over the asking price it’s a typical old persons house so needs remodernisation some TLC but it’s a solid house that rarely becomes available and your paying for the postcode it’s closeness - 10 min walk to a main train station and two outstanding primary schools that feed into two
CEO schools

@Birtwell

Oh the context is that I saw house for sale, looked at what I thought it’d sell for in good condition, costed up the work that would need doing and offered that. It was rejected but it’s still for sale. I was just wondering for future reference if I’d got it wrong? I’m a bit ambitious in what I want for my budget. I thought buying something like this could be my opportunity …. But perhaps not 😊

We did that too - still offered more than we thought it was worth after all the work was done and we still lost the bid - but was glad we lost, it fell through and they offered to sell it to us but we had seen sense.

@Birtwell

Oh the context is that I saw house for sale, looked at what I thought it’d sell for in good condition, costed up the work that would need doing and offered that. It was rejected but it’s still for sale. I was just wondering for future reference if I’d got it wrong? I’m a bit ambitious in what I want for my budget. I thought buying something like this could be my opportunity …. But perhaps not 😊

Sadly this ship has sailed now I think. The only people who benefit from doer uppers are those who can do a lot of the work themselves, or those who aren't looking to make a profit/worried about going above ceiling price, as they're staying put long term.

It’s hard to compare because it’s a 2 bed broken down detached bungalow and every other house on the street has been extended and updated to 4 bed open plan, sharp finish … so a lot more. Part of the appeal is that we could do one day

I agree with others - it's hard to compare like with like, you shouldn't be valuing it as a completed 2 bed bungalow and then knocking off the price of the works. The "appeal" as you've described it has a premium (well it does here anyway). Bungalows are sought after because they have a large footprint already and good sized plot. The sellers will know that.

@MrsBobDylan

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

And that houses are an absolute money pit.

This. Getting work done has become astronomically more expensive in the last 6 to 12m

What was true this time last year is not true today

I'd expect a significant discount

This has been really interesting, thanks. It looks like i am out of touch with this.