Serious wrecks or cosmetic jobs?

In the UK house prices have stayed fairly high despite the recession. But will fall soon (August 2010). Just wait!

This is mainly due to a shortage of properties on the market (low volume of sales) as people don't want to sell for less than they think their place is worth - even though this figure has been inflated by the recent house price bubble. However poor condition properties are now available at lower prices, as some realism has entered the market.

Some places might look terrible but only need minor repairs, a new kitchen and bathroom, new carpets, perhaps rewiring, new heating systems etc - these are easy jobs (although costs can mount) and will be suitable for beginners. Some places might look OK at first but have major structural problems like subsidence, big damp problems, damaged roof or walls, etc. These are much bigger and expensive jobs and unless you want to take on this, avoid.

Engineers' reports will be needed as some jobs aren't even feasible, especially if your aim is to make a profit on resale. Auctions are a good place to look as properties there are often difficult to sell. But look out for serious faults such as subsidence, big damp problems, damaged structure etc as these can cost more than you might guess to fix.

Take along a professional to view, or it might cost you later. Hire a surveyor or architect, or a builder, to inspect. Often you won't really have the time to do a big study before the auction date, but a professional can usually estimate and serious problems, or (usually) advise you to walk away. If the repairs are too great, get a big discount, or walk away.