Buying a home can feel a lot like entering an estate agent’s world. After all, these are the gatekeepers to your new life, and you need them to see you safely through. But, let’s be frank; it can often seem like those very agents are speaking an entirely different language.
Jargon of the trade might see you getting caught up on everything from garden acreage to south-facing views. But, one term that might trip you up more than most is a simple referral to a property with ‘potential’.
It sounds promising, but taking this claim at face value could see you committing to a property that doesn’t actually have much potential at all.
So, what do estate agents mean when they pull out the p-word, and how should it influence your buying journey?
Decoding the Jargon: Why Potential is Potentially Misleading
When an estate agent talks about ‘potential’, they’re referring to a property’s ability to become something other than its current state. While this can certainly refer to larger improvements like complete extensions, it can also be used to describe something as simple as the potential to redecorate and reinvigorate a tired space. More worryingly, the term ‘potential’ is often used as a glossy offering to cover the fact that, actually, a property isn’t all that great in its current state.
Sometimes, estate agents will also refer to specific potential improvements in their listings. For instance, if a property has no off-road parking but the space for a driveway out back, they may state this. Alternatively, they may discuss additional structures that could be suitable for renovation.
Understanding the Work
All of this sounds very promising, but for one fact – those estate agents don’t actually know if this work is possible. While they certainly make informed guesses, they’re still ultimately guessing. So, should you ever buy a property based on a ‘potential’ listing? The simple answer is no.
At least, not until you’ve called in the experts to verify. You simply can’t know whether off-road parking is a real possibility until you’ve spoken to someone who specialises in driveways. Alternatively, you’ll want to bring a builder to the property to discuss realistic renovations and costs. All of which should happen well before you make an offer.
Is it Really Worth it?
So, we’re left with one question – is a property with potential really worth your money? In reality, there is no simple answer here.
Most often, yes, a ‘potential’ property is listed as such because it has the potential to become a lucrative investment. But, there are also times when seeing that potential to fruition will cost you more than you ever stand to earn back if you pay too much in the first place.
As such, the best thing you can do to ensure a good sale is to seek extensive quotes, do the maths based on other properties in the area, and make sure that you never let an estate agent drive the price up based on ‘potential’ that might not actually exist!
