Before signing a promise to sell, when you have a real crush on an old property, it is crucial to have an estimate of the work needed to renovate it. The cost of a renovation can indeed lead to a sharp increase in the price of the property, which impacts the real estate loan essential to finance this acquisition (for financing and loan offers, see Le Financier). You must therefore make sure that the expense is worth it and that you will be able to bear the indebtedness it implies. To obtain an accurate estimate, you must therefore submit your project to a building professional. Here are the points to check before buying in the old one.
Refreshment or renovation: the price per M²
To find out if the price of the property you wish to acquire is in the market average, the cost of necessary renovations must be taken into account. Before avoiding bad surprises and disappointments, their estimate must be made as soon as possible, that is to say before making an offer, signing the promise of sale, and in any case well before the signing of the compromise.
The only solution is to draw up a list of everything you want to have renovated by a professional because depending on the level of renovation desired, the price per m² differs. It is necessary to count :
- From 220 to 500 €/M² for a simple refreshment,
- From 450 to 850 €/M² for a partial renovation,
- From 900 to more than 2,000 €/M² for a total renovation or major renovation.
Depending on the area of the property you wish to acquire, the note can be rather steep. Indeed, refreshing an old 100 M² apartment costs between €22,000 and €50,000, while completely renovating an old house of the same size requires a work budget of up to €200,000. Having the cost of the work estimated by a construction expert makes it possible to negotiate the price of the property with the seller, especially if the latter has overvalued the value of his house or apartment.
Renovation of a property: the different possible works
The renovation of an old property may require:
- Changing the coverings (ceiling, wall, floor),
- Modification of the distribution of rooms (demolition of a wall or a partition, modification of a shear wall or a simple partition, creation of a solid or glazed partition),
- The replacement of joinery (doors, windows, French windows, bay windows, bull’s-eyes, etc.),
- The creation of a bathroom or a shower room, with or without toilets,
- The development of the attic,
- The installation of a staircase,
- The total renovation of the kitchen,
- Improved insulation,
- Changing the heating system (from electric heating to geothermal heating with a heat pump, for example),
- The renovation of the facade,
- The replacement of a few tiles or the total repair of the roof,
- Plumbing, electrical work.
This list is far from being exhaustive. It may also be necessary to add a garage, to fence the land or to renovate the perimeter wall or the fence, or even – if you wish to increase the living space – to wish for an extension by having a veranda built. for example. Everything must be planned before making a definitive commitment to buy a property, even if it is a real crush.
Evaluate the cost of renovating an old property: entrust your project to a professional
The estimate of the cost of the work is not done with a ladle. Once the future buyer has an idea of what he wants, he has every interest in being assisted by a competent company. The professional can precisely indicate the necessary budget once his client has informed him of his development and renovation projects. After visiting the site, the craftsman can study the feasibility of the project but also warn the future buyer if, for example:
- The extent of the work is disproportionate to the value of the property,
- There are hidden defects that only a trained eye can detect,
- The use of an architect is essential.
For his part, the future buyer must take the precaution of contacting a competent professional, who has a good reputation, and ensure that the company to which he intends to entrust the work is in good financial health.
Price of renovation works and condition precedent
All renovation projects must be taken into account in order to properly budget your investment. If the property is negotiated at too high a price, the buyer may never be able to develop it completely as he would have liked. Perhaps then it is better to turn to another property, cheaper or which requires less work.
Be that as it may, when the whole family is under the spell of an old one to be restored, you don’t necessarily want to give up on this acquisition. It is then necessary to surround oneself with all possible guarantees so as not to have to bear penalties in the event that the sales agreement should be cancelled. This is indeed a possibility if the negotiation price of the property increased by the cost of the renovation work does not fit into the buyer’s budget. It is therefore essential to include the cost of renovation in the suspensive conditions.
So that the suspension clause be considered valid, the purchase offer must mention the need to obtain a renovation quote for the purchaser’s commitment to be confirmed. This means that the withdrawal of the purchase offer is possible and legal when the estimate of the cost of the work made by the future buyer after his first visit is much lower than the estimate of the professional.
Be careful to be as precise as possible when drafting the conditions precedent. To do this, of course, you have to plan everything. Thus, in addition to the amount of the renovation work on the property, these conditions precedent may, for example, relate to:
- In the absence of opposition of a declaration of works,
- Upon obtaining a building permit,
- Obtaining a home loan that includes the amount of the work.
The sale can therefore only be effective if the conditions precedent are fulfilled.
It may be interesting to include the price of the renovation work in the amount of the property to be financed because this makes it possible to negotiate a mortgage at a competitive interest rate. Do not hesitate to contact a mortgage broker to be fully advised.
Buy in the old can be an excellent solution if you want enhance your heritage through renovation. It is indeed possible to achieve wonders by renovating a property. Restoring an old house makes it possible to bring it into conformity with the standards in force, to improve its interior and/or exterior aesthetic appearance, to have a greater comfort and to create a living space that perfectly matches their tastes and needs. For this, it is necessary to contact a serious professional because the work must be carried out according to the rules of the art. Once the work is completed, if they are perfectly carried out, the property will have a much higher value than before. In the event of resale, its owner may realize added value not negligible.