Three common things to look out for during a viewing on your next HMO refurbishment project, that look nasty but could actually be very minor. These tips could save you thousands in a negotiation and bag you a below market value (BMV) deal. Property investing in Kent can be a game of small margins when demand is high, and any advantage you can take to increase your cashflow is key to being a successful professional property investor…I have lots of these so get in touch with us, we may save you thousands!
Here are 3 ways in which you can justify a lower offer, and allow the vendor to save face, without coming across as a tyre kicker. Remember to always write your offer, and phrase it in such a way as to not come off overly critical in order to boost you chances…and also to be a kind person…
Asbestos…swirly carpets are great, swirly ceilings…not so much.
We all look for the swirly carpets. Something that looks like it was last decorated in the 70’s. But this brings with it its own challenges. A tell tale sign of Asbestos is the swirly patterned ceiling lurking above. Although it may be that it doesn’t contain asbestos, it could cost you thousands if it does…which can be authentically reflected in your offer. A test kit from amazon costs a tenner, and the savings in a negotiation could be thousands…go figure.
A loose roof tile or a gutter full of moss might cause scary looking damage to the ceiling…but not to worry.
I remember walking into the small rear bedroom of a property in Gillingham not so long ago. The vendor basically winced when he opened the door to show me the room…with a quarter of the ceiling caved in. The offer I eventually made had a reduction, with this as a contributing factor. However, given the HMO refurbishment that was about to happen anyway, it wasn’t a big deal, and especially given the route cause. A build up of moss in the gutters had caused some tiles to become dislodged and had eventually cracked half way up the roof. Water had leaked in and blown the roof. Solution: Remove the moss, replace half a dozen tiles and plasterboard the ceiling. A fraction of the cost, compared to the reduction it achieved.
Look out for an old boiler – Its likely coming out anyway.
I love to see an old boiler, or a boiler that hasn’t been serviced in a long time. As with a high end HMO refurbishment you will want to upgrade the heating anyway, it needs to come off the wall to be moved or replaced entirely to cope with the new central heating and shower load. If the boiler is old, this is a great way to negotiate a little off the price if it needs doing.
As always, if you need more tips or advice, please get in contact with me. I haven’t seen it all but I’ve seen a lot and know a lot of builders in Kent I can ask should you need a specific question answered. Knowledge is for sharing afterall.
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