Green Building Forum - How to value and sell a half built project

How to value and sell a half built project

Ben1974 — Thu, 12 Jan 2012 13:42:18 +0000

Hi,

I've posted on here quite a few times now with advice for various aspects of my self build project. The answers have always been useful and gratefully received but the truth is I'm in a little trouble.

The build project has been long and arduous and taken a serious toll on my health. I'm at a stage now where I don't know if I'm capable of finishing the build either financially or physically/mentally.

We are exploring options for moving on from the situation before it takes any further toll on the family.

As is stands we have a completed weather tight shell with all windows and doors fitted. Some internal studwork is in place but it there are no services other than the sewer connection. The building of course has full planning permission and building regs approval.

Has anyone got any experience or advice to offer as to how we would go about valuing and selling the project as it stands? I've spent some time searching google but most of the information is US based.

Thanks and don't feel the need to pull any punches, I've already beaten myself up so thoroughly it can't get any worse!

Ben

How to value and sell a half built project

JSHarris — Thu, 12 Jan 2012 13:58:13 +0000

That's sad news, Ben, as can well imagine the emotional investment you made in the place.

I found that I was able to get an estate agent to give me a valuation of the completed house, based on my drawings and a look at the site. If you have an idea of the cost of the work that still needs to be done, then you should be able to use that to get an idea of value. My best guess is that the value will be something like 20% less than the (finished value - the cost of work to complete).

From your description it sounds as if the build (in cost terms) may be around 40 to 50% complete (I may be wrong here, I'm basing this on the costings I have for my build where the watertight structure seems to be about 40% of the build cost).

The good news is that there may well be people looking to take on project, especially if it gives them a leg up on the property ladder. I looked at two part built projects last year, and they both sold fairly quickly (I'm in the south), whereas there are some building plots around here that have been on the market a fair time.

How to value and sell a half built project

jms452 — Thu, 12 Jan 2012 14:10:31 +0000

I'd suggest speaking to a couple of local estate agents - some of them can be quite helpful and only they know how hard it will be to sell and what you might get (just remember the estate agent sterotype and don't listen to the ones who simply tell you what you want to hear).

My expectation would be that you will take a fairly hefty hit and that if you could fund a decent local builder to manage and finish the project it would more than pay for itself.

Without knowing you circumstances given that selling a house is stressful at the best of times your least stressful route might be to pair down the spec. to ease the finances (swap MVHR for a hole in the wall + extractor, Â£10k kitchen for Â£2k kitchen etc.) and get a decent local builder to manage and finish the project then you can still get to live in your dream self build in 6 months time..

How to value and sell a half built project

owlman — Thu, 12 Jan 2012 14:16:54 +0000

Sounds like you've done all the tedious bits Ben, can't you sub contract to get the place habitable? When I built 28 years ago I went through a similar phase and some minor bits are still "work in progress". It seems a shame to throw in the towel at this stage.

How to value and sell a half built project

Nick Parsons — Thu, 12 Jan 2012 14:26:51 +0000

Whereabouts in the country are you?

How to value and sell a half built project

SteveZ — Thu, 12 Jan 2012 15:52:22 +0000

Hi Ben, what a sad story. I have wanted to self-build for years, but having friends who have done it, I do appreciate the sheer hard slog involved. It seems a shame to get as far as you have and then have to stop. Without prying too much, do you have an idea of the sort of money needed to get it habitable, as suggested above? It might be worth borrowing more cash if possible to get it finished and lived in,

Cheap Mortgage Idea. I came across an idea for a cheap mortgage a while ago. Open an account with one of the private banks, such Coutts. It will cost you money(low Â£100s pa) to hold one, but their lending rates for big loans, rather than a mortgage, are very near the bank rate, which is still 0.5%. This may be nonsense, or not apply any more, but it would be a worth a couple of phone calls to check.

Get help. Where are you? It may be worth asking for voluntary/cheap help. Helping out is good way for would-be self-builders to get an idea of the work involved and get some practical knowledge. I doubt I'll be building my own home now, but I helped re-roof a rag slate roof here in Cornwall a while back and thoroughly enjoyed the experience, plus I know a bit more about slate roofing now!

If all else fails, if you're building near the sea in Cornwall, get in touch and I'll get busy persuading the Memsahib to move

How to value and sell a half built project

tony — Thu, 12 Jan 2012 15:56:52 +0000

I would not recommend selling it part done,

I would suggest that you should employ someone or do a deal with someone to finish it for you on the basis of you as a sleeping partner with no further input

Set up a bonus incentive scheme for higher than anticipated sale price etc?

There is a lot of value/money to loose offloading it part done.

How to value and sell a half built project

Ben1974 — Thu, 12 Jan 2012 16:51:09 +0000

@ Tony. I know that you worked as a building contractor. How would a deal with someone to finish the build be structured? What size of building firm would I need to approach?

How to value and sell a half built project

tony — Thu, 12 Jan 2012 19:05:34 +0000

small builder not a one man band, farther & son or brothers. I would get a QS or PM to supervise it agree prices etc for you, get out now and pay ojhers to to all of it

where are you?

How to value and sell a half built project

Ben1974 — Thu, 12 Jan 2012 19:43:53 +0000

Hi Tony;

Up in New Mills, Derbyshire. I have a friend who is a local architect who knows a number of local firms so I can talk to him.

I know it's a how long is a piece of string question but how much do you reckon it would cost to fit out a 4 bed house to a basic standard with a straightforward GSH?

Thanks for all the replies by the way, I'm very grateful for them all.

Ben

How to value and sell a half built project

jamesingram — Thu, 12 Jan 2012 20:29:23 +0000

By fit out , I presume you mean you've got it water tight and internal walls up , how about first fix elect/plumb?
Sorry whats GSH ? more details would help
so to do electrics,plumbing,first and second fix , plaster , first second fix carpentry , kitchen

If it is as above, i'm going to have a stab in the dark and say Â£500m2, lets see what others come back with.

edit. just re read your post , so as above plus service to house ?

How to value and sell a half built project

Ben1974 — Thu, 12 Jan 2012 20:56:30 +0000

Hi that's right no first or second fix plumbing or wiring. GSH should have read GCH.

It's also correct that there are no services to the house either. Gas, Water and Elec are all available from the road frontage but not currently installed.

How to value and sell a half built project

tony — Thu, 12 Jan 2012 21:08:32 +0000

It would cost a lot less to fit it out than the difference in sale value at those two points

What more do you need to know?

How to value and sell a half built project

Ben1974 — Thu, 12 Jan 2012 21:33:09 +0000

OK Tony, I think your probably right and to think anything else is deceiving myself. I'll find out next week from an estate agent what those two sale values are likely to be.

How to value and sell a half built project

gustyturbine — Fri, 13 Jan 2012 12:36:28 +0000

Ben1974- Sorry to hear of your troubles. I have just completed my self build (ish) and we are in and enjoying it every day. I hope you find the means and the will to complete yours. What a horrible position to be in. All the best from a tired, fellow self builder,
Gusty.

How to value and sell a half built project

qeipl — Fri, 13 Jan 2012 19:12:04 +0000

Ben,

I've done three self-builds - all trades, all on my own.
The first, in my mid 20s, was small, done on the absolute rock bottom cheap, and was good fun.
The second, in my late 30s, involved borrowing money, was much more ambitious, and was a serious slog (e.g. nine tonnes of tiles carried onto the roof three at a time) - I swore I'd never do it again.
The third, in my late 40s, was a little bit smaller than the second, and done for cash which removed a lot of the stress, but the physical effort was a killer.

It's brutal doing it all by yourself - even seasoned tradesmen don't realise the extent of the effort required.

If you can afford to take a break, consider leaving the project to sit for a few months while you recover your enthusiasm and earn some money. Go back to it when you're refreshed and don't do all the hard stuff by yourself - buy in some skilled labour from time to time to complete chunks of work quickly, which will do wonders for your enthusiasm.

Good luck (whatever you decide),

Malcolm

How to value and sell a half built project

Ben1974 — Fri, 13 Jan 2012 19:40:16 +0000

Thanks Gusty & Malcolm,

Interesting to hear your story Malcolm and I'm in total admiration if you've done it 3 times!. Unfortunately I jumped straight to the ambitious project first. It's easy sometimes to only see the goal and not the road to get there.

I have had about a six week break now which was partly enforced as I ended up on medication to stop me climbing the walls. A very scary experience as I'd always considered myself very fit and healthy. Everyone has a limit though!

It has enabled me to get things in perspective (before x-mas I came very close to putting a match to it). The sad thing is the various problems along the way have stopped it being a dream home. I suppose there is a possibility that the feeling might return but I need to weigh up the overall situation especially with respect to my wife and children. I've heard of failed self builds ending marriages and the experience has made me aware that my family is more important. The kids are young enough to cope easily with the disappointment and as adults we will be grateful for another lesson in life!

The suggestions made have given me plenty to go on and I'll keep posting with progress.

How to value and sell a half built project

qeipl — Fri, 13 Jan 2012 21:01:14 +0000

Posted By: Ben1974 The sad thing is the various problems along the way have stopped it being a dream home.

None of mine have been 'dream homes', just places to live that are a bit more comfortable than what went before.

Don't let the 'dream home' idea add to the pressure on you. A house is just a shed to keep the family out of the weather. The family is the important bit.

How to value and sell a half built project

MarkBennett — Sat, 14 Jan 2012 10:15:00 +0000

Posted By: qeiplA house is just a shed to keep the family out of the weather. The family is the important bit.

I'm going to steal that.......

How to value and sell a half built project

SteamyTea — Sat, 14 Jan 2012 10:20:37 +0000

On a more practical, and altruistic, level, there are enough people on here that can help Ben sort this out. This may be either physically, financially (or advice on) and even spiritually (even if just making the tea). Most us will have been in a hole with what seems like no way out and know how hopeless it can feel.
So depending on geography, time and a bit of commitment it can probably be sorted.
Just a thought.

How to value and sell a half built project

Nick Parsons — Sat, 14 Jan 2012 10:36:51 +0000

100% on board, ST.

How to value and sell a half built project

SteamyTea — Sat, 14 Jan 2012 10:42:47 +0000

Thanks Nick

How to value and sell a half built project

owlman — Sat, 14 Jan 2012 12:12:01 +0000

Posted By: qeipl........... "A house is just a shed to keep the family out of the weather."

Love it, nice turn of phrase Malcom, I'm going to try it on the missus naxt time I'm not fast enough with the paint brush or maintainance. I do concur with your sentiments regarding "dream " homes, the older I get the more just enjoy a beer with the mates and as I take a stroll through our field that always seems to need cutting I think why upset the wildlife, leave it alone. I've done enough struggling, and the lack of drive and ambition sits easy with me.
Mike

How to value and sell a half built project

Ben1974 — Sat, 14 Jan 2012 17:57:45 +0000

Such lovely thoughts, thank you everyone. I've had a lovely day out with my children (within the reasonable limits of two young children marauding around a science museum!) while my wife has a bit of time to herself.

We are in a lucky enough position that we do actually have the family in a pretty good shed at the moment so it's not total dire straits. The offer of help is extremely generous. I'll let you know if comforting tea drinking is required!

How to value and sell a half built project

borpin — Sat, 14 Jan 2012 20:43:47 +0000

Posted By: SteamyTeaMost us will have been in a hole with what seems like no way out and know how hopeless it can feel.

Yes literally at one point

How to value and sell a half built project

Pingy — Sat, 14 Jan 2012 22:15:29 +0000

Ben, when I read this I thought I was reading about myself (although I'm not on medication yet). Your situation is virtually identical to mine.

You need to remember that this is the time of year when a lot of people hit a real low (not just self builders!). I think this year is particularly bad with all the doom and gloom in the news on top of your own problems. Don't pack it in now as I'm sure in a month or two you'll regain the determination to succeed. I've had to assess my situation this week. Giving up and selling a watertight shell is not something I really want to have to do. Lowering my standards and getting a builder to finish it has become very appealing. I have two young children that I'd like to spend more time with.

How to value and sell a half built project

pmusgrove — Sun, 15 Jan 2012 09:17:39 +0000

A lot of the hassle in building my shed has been caused by having to be knowledgeable about lots of stuff. Jumping from being a plumber to being an electrician is not easy especially when the sheds we build are in many cases rather experimental and not something that the average plumber comes across. That is why this forum is so important; it has certainly saved me going down a number of blind alleys. Perhaps it is time to extend the reach by having regional face to face meetings to aid each other and especially those that are about to put down the foundations and don't know what is coming next.

How to value and sell a half built project

owlman — Sun, 15 Jan 2012 11:31:43 +0000

Posted By: pmusgrove. Perhaps it is time to extend the reach by having regional face to face meetings to aid each other and especially those that are about to put down the foundations and don't know what is coming next.

Why not, a problem shared is a problem halved.

How to value and sell a half built project

SteamyTea — Sun, 15 Jan 2012 13:09:32 +0000

I am all for that, but just bear in mind that the West Country extends from Swindon to Landsend now. Bristol is about 200 miles from me

How to value and sell a half built project

JSHarris — Sun, 15 Jan 2012 13:19:20 +0000

Posted By: SteamyTeaI am all for that, but just bear in mind that the West Country extends from Swindon to Landsend now. Bristol is about 200 miles from me" alt="" src="/forum114/extensions/Vanillacons/smilies/standard/wink.gif">

Technically I'm apparently in the "South West", here in South Wiltshire!