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Buying a Property That Needs Renovation: Good or Bad Idea?
When looking to invest in real estate, you may come across properties that require some renovation work. The question is, is buying a property with works a good or bad idea? While it can be a great way to get a better price or even create a home that perfectly suits your needs, it also comes with challenges. To help you make an informed decision, here are six key tips to keep in mind before buying a property that needs renovation.
1. Buy a property needing renovation at the best price
The main advantage of a property that requires renovation is usually the price.
You can often find these properties at a lower market value, making it a tempting opportunity. There are many reasons that justify a lower market value. For instance, less potential buyers as for many of them is difficult to imagine themselves in a property that needs renovation.
Another reason, the more logical, is that you have to add, to the purchasing price, the cost of renovation. That’s why it’s crucial to ensure that the discount you’re getting is worth the cost and effort of the work to be done.
Be careful though: don’t think it’s so easy to negotiate the price of a property that needs renovation. It all depends on whether the property has been correctly valued or not.
In order to do so, research comparable properties in the area and make sure you’re negotiating from a strong position. Analyse the state of the market in the target city and neighbourhood. In fact, you want the savings to be significant enough to justify the expense and time investment that a renovation entails. If the starting price is too high, or if negotiation is impossible, it is better not to consider this property because it won’t enable you to make a good deal.
2. Learn to imagine yourself in a property needing renovation
One of the hardest parts of buying a property to renovate is being able to see its potential.
Not everyone has the imagination to look past outdated décor, old kitchens, or even walls that may need to come down. This is where a bit of vision is required. Ask yourself: can I picture the space once it’s transformed? Can it meet my needs, and does it have the bones to support a redesign? It’s really important to be able to plan ahead for a property that needs renovation. Otherwise, you won’t be able to realise its full potential.
As seasoned buyer’s agents, your real estate personal shoppers from FRH can help you get a feel for the property with home staging advice.
Nevertheless, if you struggle to envision the possibilities, working with an architect or interior designer might help you see beyond the current state.
3. evaluate the work to be carried out correctly
Getting a clear understanding of what needs to be done is essential.
Does the property in question only need a few renovation works or more extensive work? Is a refurbishment necessary, or only small works to give the property a fresh look?
A good idea is to hire a professional to carry out a thorough inspection of the property. It is important to look at both the cosmetic and structural elements. The property could be renovate from floor to ceiling (electricity, plumbing, paintwork, heating, kitchen, bathroom, floors, windows, etc.). Apart from aesthetic and modernisation aspects the property may need to be rearranged, involving structural elements such as a load-bearing wall. To carry out this type of work, you’ll need to obtain the agreement of the co-ownership board, enlist the services of an architect, draw up a structural note, and so on.
Sometimes, what looks like a minor renovation might hide serious issues like dampness, electrical problems, or outdated plumbing systems. Understanding the scope of work upfront will prevent you from encountering unpleasant surprises down the line. It’s better to be fully informed before committing to a project.
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4. Calculate the Purchase + Renovation Budget
When buying a property needing renovation, your budget is not just the purchase price – you need to factor in renovation costs as well.
This involves getting quotes from contractors or tradespeople for the required works, adding in a buffer for any unexpected costs (at least 10-15%), and checking how the total figure compares to your original budget.
In addition, a realistic estimate of the work to be carried out is essential. The cost of a total renovation is not the same as the one of minor renovation to refresh the property’s appearance. On average, a refurbishment will cost between € 700 and € 1,000 per square metre, whereas a renovation will cost between € 1,800 and € 2,000 per square metre. If the total cost exceeds what a fully renovated property would cost in the same area, it might not be worth it.
Furthermore, be sure to account for taxes, notary fees, and any additional costs linked to renovation (permits, materials, etc.). All of this makes you understand whether buying a Property needing renovation is a good idea or not.
5. Consider the Time Needed to Monitor the renovation project
Renovating a property can take time, especially if there are unforeseen delays or complications. Depending on the extent of the work, you might be looking at several months before the property is ready to move into. Ask yourself if you have the time and energy to monitor the renovation process, which includes staying in touch with contractors, handling potential delays, and keeping the project on track. If your schedule doesn’t allow for this, hiring a project manager might be a smart investment, but this, too, will need to be factored into your budget.
Of course, if you have a passion – and a talent – for renovation work, there’s nothing to stop you doing it yourself. For example, laying parquet or decorating the walls. On the other hand, you really do need to be passionate about the work, because doing it yourself means extending the duration of the project. It can take up to 8 times longer than a project carried out by professionals. It may not be worth it, especially if you’re buying as an investment. The savings you make may not make up for the rent you don’t receive.
We believe that a winning choice is to entrust the renovation of your property to an architect, who will not only guide you towards the most judicious layout choices, but will also be able to supervise the works. In this case, you will only be involved in the choice of materials, such as the tiling or the kitchen furniture.
Of course, completely delegating the renovation of your property comes at a cost. If you’re not prepared to face up to this, you may want to abandon the idea of buying a property that needs renovation.
6. Ask Yourself: Can I Live in the Property While I Renovate?
One of the biggest decisions when buying a property in need of renovation is whether you can live in it while the work is being done.
On the surface, it may seem like a great way to save money, but the reality can be challenging. Dust, noise, and a lack of essential facilities like a functioning kitchen or bathroom can quickly take a toll. If the work is extensive—rewiring, plumbing, or structural changes—you may find yourself in an unlivable environment.
Consider the timeline, the extent of disruption, and whether you have alternative accommodation if things take longer than expected.
Sometimes, renting a temporary place or phasing the work can make the process far less stressful.
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7. Choose the Best Professionals to Carry Out the renovation
The success of any renovation largely depends on the professionals you hire.
As in every profession, also when come to buy a property needing renovation there are good and bad service providers. How many times have you heard about works left unfinished or numerous mistakes made when carrying out the work, delays of several months beyond what had been announced?
Whether it’s a general contractor, an electrician, or a plumber, the quality of their work can make or break your project. Take the time to get recommendations, check reviews, and, if possible, visit their previous works.
A trusted professional will not only deliver quality results but also help you stay on budget and on schedule. Skimping on this aspect can lead to problems and expensive fixes later.
Get the most out of FRH
FRH’s CEO Fabricio Carminati is a real estate expert and can correctly assess the price of the property needing renovation that you want to buy.
What’s more, are assisted by the best building professionals on the Côte d’Azur: architects, interior designers, electricians, plumbers, project managers…
In Conclusion, Is Buying a Property needing renovation a Good Idea?
There’s no simple answer to whether buying a property with works is a good or bad idea – it depends on your situation, your budget, and your ability to handle the renovation process. If you’re able to secure the property at a great price, have the vision to see its potential, and the resources to manage the renovation effectively, it can be a fantastic opportunity. However, if the project seems overwhelming or too costly, it may be worth reconsidering. Either way, the key to success lies in careful planning, budgeting, and working with the right professionals.
Happy house hunting, and may your next renovation project be smooth and rewarding!
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