Increasing numbers of househunters are turning away from properties requiring renovation, the heads of some of Finland’s leading estate agencies say.
Instead, they claim that prospective buyers are now prioritising ease of moving in when deciding whether to buy a property, and are less attracted by the potential cost savings of doing a property up themselves.
”When a property needs repairs, people are thinking that, yes, we could get this for 10,000 euros less, but the work would involve moving out for three months and then living in the middle of a building site for another two months. We’re seeing fewer and fewer people ready for that kind of hassle,” Seppo Hämäläinen, managing director of Kiinteistömaailma estate agents, said.
He added: ”It’s rare nowadays to find people willing to do renovations, even though it might make financial sense.”
A July poll carried out by Kiinteistömaailma found that 85 percent of agents who responded said that buyers are now looking for properties that are ready to move into. The agents also claimed that there is currently a glut of homes on the market requiring work.
Antti Asteljoki, CEO of the Huoneistokeskus chain of estate agents, says that the condition of a property has become a key criteria if there are multiple similar properties for sale in an area.
”Usually the flat in better condition gets snapped up faster, even if it’s more expensive,” he said.
Despite the trend, agents say that location is still the number one factor that makes a property desirable, followed by size and price. The financial standing of the building’s freeholders’ association is also important for buyers.
”If the freeholders’ company have not made provisions for large-scale renovations or carried out surveys, that strongly affects the prospects of a sale,” says Merja Siivonen, managing director of Helsinki’s OP-Kiinteistökeskus estate agents.
Siivonen believes that one reason behind the growing desire for refurbished properties is that banks are no longer as willing to grant extra money on top of a mortgage to cover renovation works. Therefore buyers would often have to fund the repairs themselves.
