What “needs work” can mean
“Needs work” covers a lot, from a tired kitchen to a failing roof. Before you think about price, work out which kind of job you’re looking at.
| Kind of work | For example | Who can price it |
|---|---|---|
| Cosmetic | Decorating, flooring, a dated kitchen or bathroom that still works | You, or a decorator |
| Updating | A new kitchen or bathroom, rewiring, heating, windows | A builder, an electrician, a heating engineer |
| Serious | Cracks or movement, the roof, damp, rot, the drains | A surveyor first, then a specialist |
The first two are mostly about cost and taste. The third can change the whole decision.
Does the asking already allow for it?
Sometimes. An asking price is set by the seller, usually on the agent’s advice. Some are set with the work in mind. Others sit close to what finished homes nearby sold for. The advert won’t tell you which.
Registered sales record the price and the date, not the condition. So what comparable homes in the same condition sold for matters, and so does what done-up ones sold for. Our guide on how much to offer on a house covers reading those sales.
Price the work first. Then see whether the asking already has.
If the home has been on the market for months, ask the agent why. Our guide to a house on the market a long time covers what to ask.
Get the costs before you offer
A builder’s walk-round
- Book a second viewing with a builder. Ask the agent if you can bring one, with your list of what you’d change.
- Get written quotes from more than one firm, for the same list of work. The Federation of Master Builders suggests comparing quotes like for like and asking what each one assumes and leaves out.
Which survey
RICS, the surveyors’ professional body, sets three levels of home survey.
| Survey | What you get | Suits |
|---|---|---|
| Level 1 | The condition, risks and urgent defects, with little advice | A conventional home in good condition |
| Level 2 | More detail, with advice on repairs and maintenance | A conventional home in reasonable condition |
| Level 3 | The most detail: defects, repair options and what happens if you leave them | A large, older, run-down, unusual or altered home, or one where you plan major works |
For most homes that need work, that points to Level 3. Where the surveyor rates a defect as serious or urgent, RICS says to get written quotes for the repair before you commit to buy.
Specialists for what a survey can’t test
A home survey is visual. The surveyor doesn’t lift fitted carpets, open up walls or test the services. Where something needs a closer look, the report says so. The usual specialists:
- Electrics: an electrical installation condition report (EICR) from an electrician. Electrical Safety First recommends one when you buy.
- Gas and heating: a check of the boiler and appliances by a Gas Safe registered engineer.
- Damp: an independent damp survey. Condensation, leaks and rising damp need different fixes, so find the cause first.
- Roof: a roofer. A surveyor may see parts of the roof only from the ground and the loft.
- Structure: a structural engineer, if the survey flags cracks or movement.
- Drains: a CCTV drain survey. An RICS surveyor doesn’t normally run a camera through the drains.
Add up the work before you offer.
Show these quotes when you make your offer, and say what it allows for. Keep your contingency to yourself: it’s your buffer for surprises, not a discount to ask for.
VATEmpty for two years or more? Under HMRC’s VAT Notice 708, a builder can charge VAT at the reduced rate of 5% for renovating a home nobody has lived in during the two years before work starts, if its conditions are met. Ask your builder or an accountant before you count on it.
With your quotes in hand, the asking price is the other half to check. See it against the sales
Can you get a mortgage on it?
Ask a broker before you offer. The answer can change what you can pay, or whether you can buy at all.
No working kitchen or bathroom
Most mainstream lenders won’t offer a standard mortgage on a home without a working kitchen and bathroom. Each lender draws its own line on what counts as working.
Some lenders offer renovation or refurbishment mortgages. Bridging loans are short-term and usually cost more than a standard mortgage. A broker can tell you what fits.
The lender’s valuation
The lender’s valuation is for the lender, not for you. On a home that needs work, it may come in below the price you agreed. Or the lender may hold back part of the loan, called a retention, until named repairs are done. Either way, you’d need to cover the gap at completion. Our guide to a mortgage down-valuation sets out your options.
Planning, listing and past work
- Check whether it’s listed. Search the National Heritage List for England. Listing covers the whole building, inside too, unless the entry excludes parts. Most work that affects its special interest needs listed building consent. Work without consent is a criminal offence, and the council can insist it’s reversed.
- Check for a conservation area. Ask the council’s planning team. Conservation areas carry extra planning controls, and some councils add Article 4 directions, so even new windows or doors can need planning permission.
- Ask for certificates for past work: a building control completion certificate, or one from a competent person scheme for work such as windows, electrics or heating. For windows replaced since April 2002, that could be a FENSA certificate. Without them, the work may never have been signed off under the Building Regulations.
Putting your offer
Before you make the offer, tick these off.
Then make the offer.
- Put it in writing. Phone the agent, then confirm by email. Say the offer is subject to contract and survey.
- Show the costs. Attach the quotes, or a short summary. A figure from a builder’s quote is harder to dismiss than “it needs a lot doing”.
- Say what the offer allows for. If you’ve priced a new kitchen, say so. Then you won’t ask for it twice.
- Keep your contingency to yourself. The Federation of Master Builders suggests setting aside 10% of the project cost, and 15% or more for an older home or structural work. That’s your buffer for surprises, not a discount to ask for.
If the survey finds more
In England, an offer isn’t legally binding until contracts are exchanged. An offer made subject to contract can still be renegotiated if a survey finds a problem. Do it fairly:
- Only what’s new. Leave out anything you already knew about and priced into your offer.
- Get it priced. Get written quotes for anything the survey rates as serious or urgent, and send them with the survey page.
- Ask for the cost and no more. Ask for the quoted cost off the price, or for the seller to do the repair before exchange. Leave out upgrades the survey didn’t call for.
The seller doesn’t have to agree, and pressing for more can put the sale at risk. A request backed by a quote, for the cost and no more, is one the seller can check.
Questions
How much should I offer on a house that needs work?
There’s no fixed percentage. Look at what comparable homes in the same condition sold for, and what done-up ones sold for. Then price the work, and check whether the asking already allows for it.
Can I renegotiate the house price after a survey?
Yes. In England an offer isn’t legally binding until contracts are exchanged. If the survey finds a new problem, ask for the quoted cost of it off the price, or for the seller to fix it. The seller can say no.
Can I get a mortgage on a house without a working kitchen or bathroom?
Usually not a standard one: most mainstream lenders want both. Renovation mortgages and bridging loans are made for homes that don’t qualify. A broker can confirm what’s available.
Which survey do I need for a house that needs work?
RICS recommends its Level 3 survey for a large, older or run-down home, or if you plan major works. A survey doesn’t test the electrics, gas or drains, so add specialists where it raises a concern.