PP:                   £225,000

Work Costs:     £27,471

Legals /SDLT:   £9,757

Total Costs:      £262,228

End Value:       £300,000

Profit:              £37,772

ROCE*:            14%

*Return on Capital Employed

The Property

This bungalow appeared to be a straightforward refurbishment project. The agent was eager to move quickly, as previous sales had fallen through twice. Although the seller had four offers, none were proceedable because the buyers were in a chain (they needed to sell their properties before purchasing). This highlighted the high demand for this type of property in Whitchurch, a peaceful area in southern Bristol. A flip seemed like a promising option. The property required a new kitchen, bathroom, gas central heating, and fresh décor throughout.
 

The Plan

Our goal was a quick turnaround, so we decided to work with our main contractor, with whom we had prior experience

• Install central heating and rewire
• New kitchen and bathroom
• New sliding doors into the garden
• Clear garden and Install decking.
• New flooring and fresh paint throughout.
• Replace builder!  Well, this wasn’t planned, but they didn’t take kindly to our ‘snag list’ and so we had to find another builder to make good their work.

We provided the finishing materials, while the contractor supplied building materials and labour. Fortunately, the structure and roof of the house were in excellent condition, meaning the project required only a basic refurbishment. 

Lessons Reinforced

1. Pay in instalments, not up front..  Always pay your builder in pre-determined instalments tied to agreed milestones. In this case, we agreed to pay in instalments of 30%, 30%, 30%, and a final 10% upon project completion, once all work had been checked. This approach proved invaluable when the builders claimed to have finished and requested the final payment. Upon inspection, we identified several snags where the work had been rushed. When the builders refused to address these issues, we used the retained 10% to hire someone else to complete the job.  
2. Get the local agent’s opinion.  Consulting a local agent about the property layout can save time and money. In this case, we initially planned to merge the kitchen and dining room into a single kitchen-diner. However, the agent advised against it, noting that the typical local clientele—retired residents—preferred separate kitchen and dining spaces. This insight saved us the expense and time of unnecessary structural changes that might have reduced demand. Additionally, the same agent sold the house for us before the refurbishment was even complete, enabling us to buy, refurbish, and sell within just four months.
3. Work with the certification officers directly.  When the original build team stopped responding after our snag-list dispute, we faced challenges with essential certifications. Both the electrician and building regulations inspector had been arranged through the builder, leaving us to resolve these issues independently. We had to secure retrospective building regulations approval through the council and hire a new electrician to inspect the wiring and issue an installation certificate. This cost us extra time and money. In the future, working directly with certification officers—especially building regulators—ensures continued access to essential documentation, even if the contractor breaks contact.