Quick-sale property companies generally make their money by buying houses from one person and selling it to another. The fact that they don’t purchase it at the market value obviously helps them turn a profit, but so does renovation.
By renovating their purchases, not only do they improve the quality of the home for the buyer, but they also make it easier to sell the place for more money. How much does this all cost, though?
The Average Price
Renovating a house can be a reasonably affordable venture, but it can also get quite pricey. It all depends on how much work is done and what kind of changes are made. The size of the property can come into play, too, as can location.
At a very rough estimate, a person can expect to pay upward of £40,000 to renovate a three-bedroom property. However, this is assuming they have the full works done, including knocking down walls, replacing the kitchen, and rewiring the whole house.
Hiring In-House
For property buying companies, things tend to be a bit cheaper than this, even if they do carry out a lot of renovation work. That’s because they can have an in-house team who cover all manner of redecorating tasks. Whether they just paint a few walls or completely transform entire rooms, having professionals on the payroll can save a lot of time and effort, which obviously influences the price.
To find a company that will put effort into renovating a property, it’s worth looking into we buy any house reviews. Those who are genuine will often do something to spruce a place up, whereas scammers will charge the same price without changing a thing.
Taking Risks
For some properties, renovations are essential. That’s especially the case with companies like House Buyers 4 U, who take any house in any location, provided in England, Scotland, or Wales. It doesn’t matter what condition the property’s in; they’ll pay to take it off the owner’s hands.
To some companies, doing that would be too much of a financial risk. However, when you have an in-house building team that can do renovation work at a fraction of the cost, it’s not as dangerous a venture as it seems. The money that goes into replacing windows or repairing walls will almost always be made back when the property is sold.
Maximising Profits
A property buying company can usually ensure a profit on their renovations by focusing on the areas with the greatest return on investment. This includes upgrading the home’s heating system and giving the kitchen a makeover, which could both boost a property’s value by several percent.
Obviously, if companies want to maximise their profits, they have to take into account certain factors that will influence whether a renovation is worthwhile. For instance, some areas might value renewable energy sources or an open plan design more than others. There’s no point investing in these features if the local population don’t care much for them.
It’s impossible to give an exact price for how much property buying companies pay for renovations because there are simply too many factors to consider. One thing we can say, though, is that they can usually get it done for less money.
