When it comes to selling a property, sometimes the best decision is simply to put it on the market and let the buyer see its potential.
But what happens when a property is tired, dated or in need of significant work — and you suspect that selling it in its current condition may not achieve its full potential?
At Debbie Fortune Estate Agents, we are always looking for ways to help our clients make informed decisions about their property. That is why we are pleased to introduce our new referral relationship with Renovate for Sale, giving us another option to consider for suitable properties.
When renovation could make a difference
Not every property needs renovating before it is sold, and not every refurbishment will make financial sense.
However, there are occasions where a property has good underlying potential but is being held back by its presentation or condition. An outdated kitchen, tired bathrooms, worn flooring, dated décor or an overgrown garden can all affect how buyers perceive a property.
For some owners — particularly those dealing with an inherited or probate property — organising a major renovation can feel like an unnecessary complication.
This is where Renovate for Sale may be able to help.
Renovate for Sale assesses suitable properties to establish whether renovating before sale could create additional value. Where the numbers stack up, it can fund and project-manage the renovation, with its costs recovered from the eventual sale proceeds rather than requiring the estate to fund the works upfront. (Renovate for Sale – Referrers)
A real example: Mulberry Cottage
The potential of this approach is illustrated by the recent transformation of Mulberry Cottage in Bleadon, Somerset.
The inherited cottage had character, a generous plot and far-reaching views, but years of wear had left it dated. It had an ageing kitchen and bathroom, heavy patterned décor and worn flooring throughout. Despite having been on the market for two years, no buyers had been willing to undertake the work.
The agents referred it to Renovate for Sale who funded and managed a comprehensive refurbishment; a new kitchen, refitted bathrooms, new flooring and redecoration throughout, alongside improvements to the exterior and garden.
The living room was also transformed, with fresh plaster and paint, a natural stone fireplace and wood-burning stove creating a new focal point. Other rooms were lightened and modernised while retaining elements of the property’s character.
The garden provided another opportunity. Two parcels of garden land were sold separately for £50,000 and £20,000, contributing an additional £70,000 to the overall return before the cottage itself was sold.
What price was finally achieved?
In this case study, the property’s auctionable baseline was £220,000.
Renovate for Sale funded £100,000 of renovation work, and the cottage ultimately sold for £340,000, with the two garden plots generating a further £70,000.
The total sale proceeds were therefore £410,000.
After taking into account the £220,000 baseline and £100,000 renovation investment, the net uplift was therefore £90,000. Renovate for Sale’s fee was 20% of the net uplift, £18,000 plus VAT (total of £21,600), which left a final additional amount of £68,400 (£72,000 less VAT) for the estate, compared with selling at the auction baseline.
Every property is different, of course, and these figures relate specifically to Mulberry Cottage. They should not be taken as a guarantee of what another property might achieve.
An assessment before making a decision
One of the things we particularly value about the referral process is that renovation isn’t automatically recommended.
The property’s circumstances and potential are assessed to determine whether refurbishment is likely to make commercial sense.
There are several possible outcomes.
Sell as it is
If renovation isn’t expected to create sufficient additional value, the property can simply proceed to sale in its existing condition.
Renovate before selling
If the assessment indicates that refurbishment could generate a worthwhile uplift, Renovate for Sale can potentially fund and manage the work before the property is placed on the market.
Don’t proceed
If the numbers don’t stack up, there is no obligation to go ahead – we’ll be honest with you.
Adding value for our clients
At Debbie Fortune Estate Agents, we understand that selling a property is about much more than putting a board outside and advertising it online.
Sometimes the property is ready to go.
Sometimes it needs a little preparation.
And occasionally, a property needs a much more substantial transformation before it can show buyers what it could really be.
Our relationship with Renovate for Sale means that, where appropriate, we can introduce another option into that conversation.
We sell many inherited and probate properties, where family members or executors may be faced with a property that hasn’t been updated for many years and may not have the time, resources or desire to oversee a large refurbishment themselves.
Renovate for Sale’s model is designed around funding and managing the renovation, while the estate pays absolutely nothing upfront for the renovation works. Its fee is linked to the value created, where you can see that the case study here shows that its fee only applies where the net uplift exceeds its minimum threshold.
Helping you decide what’s right for your property
There is no single solution that works for every property.
Sometimes the right answer is to sell quickly in its current condition. Sometimes a property will benefit from relatively simple preparation before going to market. And in some circumstances, a more significant renovation could unlock considerably more value.
Our role at Debbie Fortune Estate Agents is to help you understand your options and make a decision that is right for your individual circumstances.
Our new referral relationship with Renovate for Sale gives us another tool to help do exactly that.
If you have an inherited property, probate property or simply a home that requires significant work, talk to Debbie Fortune Estate Agents before deciding what to do next.
We can discuss the property’s potential and, where appropriate, introduce you to Renovate for Sale for an assessment.
Sometimes, the best way to sell a property is to sell it exactly as it is.
But sometimes, the best value is waiting to be unlocked.
Debbie Fortune Estate Agents may receive a referral fee from Renovate for Sale.
