BUY-INHow to spot the price gap before you offer
The first underwriting question is not whether the house is tired. It is whether the asking price gives you room to create value.
- Find three genuine current-condition comparables, not renovated sales.
- Treat guide price as the starting point: test the likely purchase price and all acquisition costs.
- Ask what makes this property difficult for the average buyer. Condition, layout, planning uncertainty and poor presentation can create the price gap.
STRATEGYRefurb, extend or replace? Choose the route first
A large headline GDV is meaningless unless the route to reach it is credible, costed and suited to the site.
- Refurbishment needs a clear finished specification and a realistic works allowance.
- Lofts and extensions need local planning precedent, a workable footprint and finished sales that support the larger home.
- Replacement, conversion and land plays demand more contingency and a much stronger planning case before the margin is trusted.
FINISHED COMPARABLESFinished comparables: the evidence behind the GDV
The finished value is an evidence-led opinion, not the best sale on the road.
- Prioritise recently sold homes with the same finished size, type, road quality and level of specification.
- Use a range rather than one heroic number. The underwriting should still work at the cautious end.
- Separate gross value-add from profit: purchase, taxes, works, finance, fees, contingency and sale costs all come out before the margin is real.