WHAT IS A FIXER UPPER HOUSE & ARE THEY WORTH BUYING IN 2024
Alexandra Ventress
March 15th, 2024
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Fixer upper houses, sometimes also referred to as doer upper houses, are properties that are in need of serious repair and renovation work before they can be classed as fully liveable or up to modern standards.
Buying a fixer-upper home means that you are purchasing a huge renovation project, as they will often come with outdated electrical and plumbing systems, structural issues, or worn-out flooring. If you are an investor who enjoys a long-term project, then the lower asking price of a fixer-upper may be appealing to you.
How to spot a fixer-upper home
Besides the fact that the property will be in serious need of renovation, there are some other key characteristics of fixer-uppers, such as:
- Discounted price: Due to the required work, fixer-uppers are typically priced lower than move-in-ready homes in the same area.
- Needed repairs: These can range from cosmetic issues like outdated fixtures and worn-out flooring to more substantial problems like faulty electrical wiring, leaky roofs, or structural damage.
- Potential for customisation: Fixer-uppers offer the opportunity for the buyer to personalise the space through renovations and create their dream home.
Need help finding fixer upper homes? We can help! As the UK’s leading property sourcing company, we can help you find investment properties across England and Wales. Join us today!
Exactly how profitable a doer-upper property will be depends upon a variety of factors. For example, renovation can significantly increase a property’s value, and selling the house after renovations for a higher price can lead to a profit. If you decide to keep your fixer upper after renovations and instead rent it out, you can generate rental income which you can use for further renovations or to fund your next project.
However, there are significant factors at play which can affect profitability, such as renovation costs. Extensive repairs and upgrades can be expensive, potentially exceeding the initial budget due to unforeseen issues. Furthermore, renovations are time-consuming, and the process can take longer than anticipated, affecting the potential rental income and overall project timeline.
In order to make the most of your fixer-upper, it is important to purchase it below market value and at a lower sale price than its potential value after renovation. You should also implement realistic budgeting and factor in unexpected costs along the way.
Whether or not a fixer upper home is a good investment will depend upon the property you choose, the location it is in, its condition, as well as the quality of the renovation work you have done. As is the case with any investment opportunity, there are pros and cons to fixer upper properties.
Below we take a closer look at the pros and cons of investing in a doer-upper property:
Pros:
- Affordability: The lower purchase price can be attractive, especially for first-time homebuyers on a budget.
- Investment potential: With renovations, the value of the property can increase significantly, allowing the owner to sell it for a profit.
- Customisation: Buyers can design the space to their tastes and preferences.
Cons:
- Renovation costs: The repairs and upgrades can be expensive and time-consuming. Unexpected issues can further inflate the budget.
- Expertise required: Significant work might necessitate hiring contractors or possessing some handyman skills for DIY projects.
- Inconvenience: Living in a house under renovation can be disruptive and uncomfortable.
Exactly how much it will cost you to renovate your fixer-upper house will depend entirely on the individual property you are looking at. No two houses are the same and each property will bring its own set of challenges.
However, with a home that needs renovation, you will more than likely come across one of these common essential repairs or renovations at one point or another in your fixer upper journey. Be aware that these are average prices for renovation projects and how much you spend will depend on your property condition, location, and whether you decide to undertake the projects yourself or with a professional.
| Project | House Renovation Cost |
|---|---|
| Extension | £26,000 – £34,000 |
| Loft conversion | £45,000 |
| New bathroom | £6,000 |
| New kitchen | £10,000+ |
| Garage conversion | £6,000 |
| Subsidence | £6,000 |
| Damp | Up to £16,000 |
| Double glazing | £400-£600 per window |
| Installing central heating | £4,000 |
| New boiler | £2,700 |
| New roof | £4,500 – £12,000 |
| Fixing rot | £1,000 – £2,000 |
| Woodworm treatment | £450 – £800 |
It is always a wise idea to set approximately 10% of the cost for each renovation project aside in case of unexpected costs that may crop up as a result.
Where to find fixer-uppers?
If you are on the lookout for your next investment doer-upper, then there are several avenues and routes for you to explore, such as…
Online resources:
- Online property portals: Major property portals such as Zoopla or Rightmove often have filters for properties listed as “needs work” or “TLC.”
- Foreclosure listings: Websites specialising in foreclosures may offer fixer-uppers at a discount. However, proceed with caution and do your due diligence to understand any potential complications associated with foreclosed properties.
Estate agents:
- Speciality agents and Sourcing companies: Look for real estate agents or sourcing companies specialising in fixer-uppers or investment properties. This can often be an invaluable port of call, as they will have experience in this market segment and can provide valuable insights and guidance throughout the process.
Local resources:
- Driving around: Fixer-uppers are sometimes evident by their exterior condition, with visible signs of wear and tear. Driving around target neighbourhoods can help you spot potential properties and give you a better idea about what to expect.
- Community forums or social media groups: Local online communities or social media groups focused on property or home improvement might have discussions or postings about fixer-uppers.
Buying with cash is pretty similar to a typical property purchase, but of course, you don’t have to jump through the hoops of getting mortgage approval which means the sale is a lot less likely to fall through as issues are common with mortgage providers.
The whole process is a little more straight forward and less stressful, and it’s also appealing to people who are selling as it typically means that you can buy quicker than someone with a mortgage, but we’ll dig more into that in the pros and cons section!
If you are looking to purchase a fixer-upper home, you will first need to conduct your own research. There are lots of ways you can go about doing this, such as looking at trends in different areas you are interested in. You should look at the price points, renovation costs, and potential resale value after improvements.
You will next want to look at securing the funding for your doer-upper project. or less extensive renovations, a traditional mortgage may be sufficient, however, you may wish to get in touch with your lender and look into exploring different loans and mortgages available to you. It is important to carefully consider your budget at this stage and to be realistic about the total costs involved, including purchase price, renovation estimates (factoring in a buffer for unexpected issues), and potential carrying costs while the house is under construction.
The next step is to have a survey commissioned of the property in order to identify any existing or potential issues. In doing a survey you will be able to get a better idea of the work needed which will allow you to budget more efficiently. You should also look into obtaining quotes from reliable contractors for the planned renovations. Factor in labour costs, material prices, and potential permits that may be needed.
Finally, it’s time to negotiate the price and purchase your doer-upper. When it comes to negotiating, you should look at the repairs needed. This will allow you to potentially negotiate a lower purchase price for the property.
Whether or not a fixer upper house is worth it will depend on your property, location, risk tolerance and resources. Renovations can significantly increase the property’s value, allowing you to sell it later for a higher price and potentially make a profit. They are also typically priced lower than move-in ready homes in the same area, making them an attractive option for first-time buyers or those on a budget. Furthermore, a fixer upper is a blank canvas, allowing you to personalise it to your own taste and preferences.
However, it is worth bearing in mind that significant repairs and upgrades can be expensive, and unexpected issues can easily inflate the budget. They can also be time-consuming, and the project can take longer than anticipated, delaying your move-in date or impacting rental income.
Looking for tailored investment opportunities? As the UK’s leading property sourcing company, we can help you find investment properties across England and Wales. Join us today!
Alexandra Ventress
March 15th, 2024
Share this post
Start your property portfolio today!
Fixer upper houses, sometimes also referred to as doer upper houses, are properties that are in need of serious repair and renovation work before they can be classed as fully liveable or up to modern standards.
Buying a fixer-upper home means that you are purchasing a huge renovation project, as they will often come with outdated electrical and plumbing systems, structural issues, or worn-out flooring. If you are an investor who enjoys a long-term project, then the lower asking price of a fixer-upper may be appealing to you.
How to spot a fixer-upper home
Besides the fact that the property will be in serious need of renovation, there are some other key characteristics of fixer-uppers, such as:
- Discounted price: Due to the required work, fixer-uppers are typically priced lower than move-in-ready homes in the same area.
- Needed repairs: These can range from cosmetic issues like outdated fixtures and worn-out flooring to more substantial problems like faulty electrical wiring, leaky roofs, or structural damage.
- Potential for customisation: Fixer-uppers offer the opportunity for the buyer to personalise the space through renovations and create their dream home.
Need help finding fixer upper homes? We can help! As the UK’s leading property sourcing company, we can help you find investment properties across England and Wales. Join us today!
Exactly how profitable a doer-upper property will be depends upon a variety of factors. For example, renovation can significantly increase a property’s value, and selling the house after renovations for a higher price can lead to a profit. If you decide to keep your fixer upper after renovations and instead rent it out, you can generate rental income which you can use for further renovations or to fund your next project.
However, there are significant factors at play which can affect profitability, such as renovation costs. Extensive repairs and upgrades can be expensive, potentially exceeding the initial budget due to unforeseen issues. Furthermore, renovations are time-consuming, and the process can take longer than anticipated, affecting the potential rental income and overall project timeline.
In order to make the most of your fixer-upper, it is important to purchase it below market value and at a lower sale price than its potential value after renovation. You should also implement realistic budgeting and factor in unexpected costs along the way.
Whether or not a fixer upper home is a good investment will depend upon the property you choose, the location it is in, its condition, as well as the quality of the renovation work you have done. As is the case with any investment opportunity, there are pros and cons to fixer upper properties.
Below we take a closer look at the pros and cons of investing in a doer-upper property:
Pros:
- Affordability: The lower purchase price can be attractive, especially for first-time homebuyers on a budget.
- Investment potential: With renovations, the value of the property can increase significantly, allowing the owner to sell it for a profit.
- Customisation: Buyers can design the space to their tastes and preferences.
Cons:
- Renovation costs: The repairs and upgrades can be expensive and time-consuming. Unexpected issues can further inflate the budget.
- Expertise required: Significant work might necessitate hiring contractors or possessing some handyman skills for DIY projects.
- Inconvenience: Living in a house under renovation can be disruptive and uncomfortable.
Exactly how much it will cost you to renovate your fixer-upper house will depend entirely on the individual property you are looking at. No two houses are the same and each property will bring its own set of challenges.
However, with a home that needs renovation, you will more than likely come across one of these common essential repairs or renovations at one point or another in your fixer upper journey. Be aware that these are average prices for renovation projects and how much you spend will depend on your property condition, location, and whether you decide to undertake the projects yourself or with a professional.
| Project | House Renovation Cost |
|---|---|
| Extension | £26,000 – £34,000 |
| Loft conversion | £45,000 |
| New bathroom | £6,000 |
| New kitchen | £10,000+ |
| Garage conversion | £6,000 |
| Subsidence | £6,000 |
| Damp | Up to £16,000 |
| Double glazing | £400-£600 per window |
| Installing central heating | £4,000 |
| New boiler | £2,700 |
| New roof | £4,500 – £12,000 |
| Fixing rot | £1,000 – £2,000 |
| Woodworm treatment | £450 – £800 |
It is always a wise idea to set approximately 10% of the cost for each renovation project aside in case of unexpected costs that may crop up as a result.
Where to find fixer-uppers?
If you are on the lookout for your next investment doer-upper, then there are several avenues and routes for you to explore, such as…
Online resources:
- Online property portals: Major property portals such as Zoopla or Rightmove often have filters for properties listed as “needs work” or “TLC.”
- Foreclosure listings: Websites specialising in foreclosures may offer fixer-uppers at a discount. However, proceed with caution and do your due diligence to understand any potential complications associated with foreclosed properties.
Estate agents:
- Speciality agents and Sourcing companies: Look for real estate agents or sourcing companies specialising in fixer-uppers or investment properties. This can often be an invaluable port of call, as they will have experience in this market segment and can provide valuable insights and guidance throughout the process.
Local resources:
- Driving around: Fixer-uppers are sometimes evident by their exterior condition, with visible signs of wear and tear. Driving around target neighbourhoods can help you spot potential properties and give you a better idea about what to expect.
- Community forums or social media groups: Local online communities or social media groups focused on property or home improvement might have discussions or postings about fixer-uppers.
Buying with cash is pretty similar to a typical property purchase, but of course, you don’t have to jump through the hoops of getting mortgage approval which means the sale is a lot less likely to fall through as issues are common with mortgage providers.
The whole process is a little more straight forward and less stressful, and it’s also appealing to people who are selling as it typically means that you can buy quicker than someone with a mortgage, but we’ll dig more into that in the pros and cons section!
If you are looking to purchase a fixer-upper home, you will first need to conduct your own research. There are lots of ways you can go about doing this, such as looking at trends in different areas you are interested in. You should look at the price points, renovation costs, and potential resale value after improvements.
You will next want to look at securing the funding for your doer-upper project. or less extensive renovations, a traditional mortgage may be sufficient, however, you may wish to get in touch with your lender and look into exploring different loans and mortgages available to you. It is important to carefully consider your budget at this stage and to be realistic about the total costs involved, including purchase price, renovation estimates (factoring in a buffer for unexpected issues), and potential carrying costs while the house is under construction.
The next step is to have a survey commissioned of the property in order to identify any existing or potential issues. In doing a survey you will be able to get a better idea of the work needed which will allow you to budget more efficiently. You should also look into obtaining quotes from reliable contractors for the planned renovations. Factor in labour costs, material prices, and potential permits that may be needed.
Finally, it’s time to negotiate the price and purchase your doer-upper. When it comes to negotiating, you should look at the repairs needed. This will allow you to potentially negotiate a lower purchase price for the property.
Whether or not a fixer upper house is worth it will depend on your property, location, risk tolerance and resources. Renovations can significantly increase the property’s value, allowing you to sell it later for a higher price and potentially make a profit. They are also typically priced lower than move-in ready homes in the same area, making them an attractive option for first-time buyers or those on a budget. Furthermore, a fixer upper is a blank canvas, allowing you to personalise it to your own taste and preferences.
However, it is worth bearing in mind that significant repairs and upgrades can be expensive, and unexpected issues can easily inflate the budget. They can also be time-consuming, and the project can take longer than anticipated, delaying your move-in date or impacting rental income.
Looking for tailored investment opportunities? As the UK’s leading property sourcing company, we can help you find investment properties across England and Wales. Join us today!
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