flip Determining potential post refurb value to determine offer price for first flip

[Dan B 1]

Hi all,

 

Looking for advice from people with experience in making BMV offers for flipping as this will be the purpose of my first project. What I'm really trying to determine here is a realistic conservative value for the below property example. Until I come to a clue I can't begin coming up with an offer price and sourcing potential finance options. Any opinions or just general advice to make the determining value process easier will all be welcome and greatly appreciated.

 

About the property:

 

Located in the town I grew up, on a street within two minute walk to town center so searching for 3 bed detached comparible properties even within 1 mile doesn't return many results due to its location. Most Streets close to town centre consist of terraced houses. The street consists of a mixture of mainly terraced and semi detached properties and 2-3 detached. Most of the semis are 3 bed though roughly a similar size to the property I'm intested in. A brand new primary school has been built on the street and a couple older properties have had full refurbs but not currently finished so hopefully it may bring the general value of the street up, also two new build semis mid street that have also not yet gone to market.

The house istself self is located at the quiet end of the street, has been empty for years and deteriorated considerably. Windows have been smashed for years and they have now boarded up the windows and front door too. Full renovation will be required, completely stripped back to brick. I was planning on contacting the owner via writing however I happened to park outside the other week and someone was raking back the over grown weeds, the owners son, after a quick chat it turns out they are looking to sell and want a quick sale! 

 

So area stats:

 

Potential flip:

3 bed detached, long garden, off-road parking for one car (rare on this street) 2 reception rooms, kitchen, downstairs WC, 3 bedrooms upstairs bathroom.

Last sale: 2003

Price paid: £85k 

 

Identical property (mirror image) next door, this is as close a comparable house you will get as they looks the same so assuming built together:

Sales:

1997: £53k

2011: £100k

2015: £130k

 

Highest amount paid in the street:

Similar sized 3 bed semi however it had potential building plot with side garden:

2014: £155k

 

 

The floowing are all different properties sold prices:

 

Street sales before 2008 crash:

 

2005 - £115k - 3 bed semi

2005 - £95k - ? semi (no property info)
2006 - £121k - 3 bed semi
2006 - £125k - 3 bed semi
2007 - £123k - 3 bed end terrace

 

Street sales after 2008 crash:

 

2011 - £80k - 3 bed semi

2014 - £110k - 3 bed semi

2014 - £155k - 3 bed semi (Ceiling?)

2015 - £130k - 3 bed detached (identical)

2016 - £60k - ? Semi (no property info)

Postcode stats:

 

As previously mentioned searching the surrounding 1/4, 1/2, 1 mile area doesn't return many comparable due to its location so here are some postcode stats in general:

 

Average sold prices:

 

• General average - £150k (09/17)
• Average detached - £184k
• Average Semi - £130k

 

 

Obviously there is more research I can do into the area which I have and continue to do and I have not spoken to any EA's yet to get their thoughts on the area and price. At this initial stage I'm apprehensive about getting the estimated potential value as close as I can. 

 

If you managed to get through all of that thanks for reading!!! Hopefully someone can lend some advice and look forward to hearing from any of you.

 

Dan

 

[darren mcneill 241]

Hi Dan,

 

Looking at some of the numbers you have given I would say £130k would be a good target price, possibly targeting 140k and anything above being a bonus..  TBH its really hard to make an educated guess without seeing the area etc.

 

Feel free to drop me the details and il have a look if you want?

 

 

Darren

 

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