Jack Malnick, property expert and founder of SellHouseFast, shares his tips on evaluating if a property will be a hidden gem that you can add value to, or one that could see you draining your finances.
For many, finding the perfect ‘fixer upper’ property is the ultimate steal in the property market, and there are often bargains to be had that just need care and attention.
Yet there can be many properties that are cheaply priced because they come with a list of issues and problems that will require a big budget to fix, and the trick is knowing how to spot a bargain and when to walk away from a home that could easily become a financial burden.
Old electrics or heating
It might not be something you notice at first when looking around a potential property purchase, but old electrics or even an old and creaky heating system will be costly jobs to fix.
Older systems will also usually be outdated and not in line with what is considered safe in homes now. Previously properties might have had a boiler in a bedroom, whereas now it’s advised to have it downstairs and typically in the kitchen.
Rewiring a property or making significant changes to the plumbing will also see you incur additional costs such as plastering, brick work and then painting and decorating afterwards so it’s worth bearing in mind how much it will cost in total.
Visible foundation or structure issues
If you notice major foundation issues with a property during a viewing or in pictures, then chances are there could be some big structural problems that need to be addressed, and this could set you back anywhere between £20,000 to £100,000. An issue like this means your bargain buy could quickly become an expensive investment, and not one that you would be able to reclaim the value from in future.
During the home buying process you will typically engage a surveyor to check all aspects of the property before you’d be granted a mortgage, and this is especially important for older properties.
Often an extensive survey can cost more than a basic one, but it is worth getting a full look at a building’s structure and any issues that could cause problems later down the line.
If you’re at a property viewing then you can keep an eye out for issues such as bowed ceilings, cracks in walls or warped flooring that indicate there could be damage to its foundation or structure.
Old roof or windows
An old roof or ageing, crumbling windows is also another dead giveaway that a property will need a significant investment to get it to standard, and it’s worth remembering that a roof and windows will need maintenance, too, so it’s not usually a one-off payment.
You might be able to see damage just by looking at a roof before you buy, but this should also be flagged in a survey and it’s worth noting that a new roof can cost you almost £5,000.
Water damage and damp
Water damage will see your finances trickling away, and it’s one of the biggest issues a property can face.
While a home that has previously had damp issues might sometimes smell ‘damp,’ don’t rely on your nose for clues. The issues might have just been covered up instead of properly fixed.
Issues with damp can also cause mould and infestations, so treating it might see you needing to invest in a damp proof course or even have it regularly treated to avoid things getting worse.
Poor insulation
Buying a home in winter means you can more readily spot issues with heating and insulation. Sometimes this can be easy to spot and you can instantly feel a draft when you walk into a room, and in others it can be noticing that windows are single glazed or blown – or even spotting cracks around them.
Another trick that works for buying in winter is if it’s been snowing then look at the roof of your potential property versus a neighbour’s. If snow has already evaporated then you know you’re facing an issue with heat escaping from the house. This might be a simple fix with loft insulation, or could be a bigger job needing a better roof and more.
Awkward layouts
This is less of an issue if you’re planning to make your hidden gem a forever home as you’ll be happy to put the work in and make it yours, but a difficult or tricky layout can end up costing a lot to put right.
If you’re planning to buy and then ‘flip’ by selling again for profit, an awkward layout might be something that sees you limited in what you can get when you sell in future.
Awkward layouts can include needing to walk through one bedroom to access another or get to the bathroom, or even be as simple as having a bathroom downstairs when ideally you want one upstairs. Often they can be down to a house’s age and what was needed at the time.
It’s worth consulting an architect or planning how many changes to a home’s floor plan you’d like to make before you put in an offer, as this could eat up a sizable chunk of the budget before you’ve even got to making it look nice and liveable.
Property history
Understanding a property’s history isn’t just about being curious about who else owned it, but it can help you understand whether it’s been through significant wear and tear, had multiple owners who have all sold quickly, or whether it’s had just one who’s maintained it.
It’s possible to check the history online usually including previous sale prices, and to understand if a home has ever been used for anything other than a residential property.
Another thing to note is if the property has ever had any breaches in planning, which can cause issues further down the line. You might find that causes issues with getting a mortgage approved, or you might be asked to consider taking out indemnity insurance to cover costs in case enforcement action happens.
Listed status
The appeal of a period property or historical style home has definitely increased in recent years, but it’s worth being aware that an older home may have listed status.
You’ll likely be informed by the estate agent or when purchasing, but this can mean that any changes to the property will require sign off and usually means no major changes can be made in case it alters the character of the building.
