Nailing Your Refurb Business Plan
Ask ten developers what their refurb will cost, and you’ll often get a shrug, a rough figure, or the classic: “Well… it depends.”
But in truth, “Well… it depends” is absolutely correct. There are so many variable factors with refurbs. If I could record and play back every conversation I’ve had with developers and contractors, each one would be different.
New builds and extensions are easy. That’s a conversation for another time. Refurbs, however, require a completely different mindset when it comes to producing build costs. I’ve been in the industry now for over 18 years. I’ve costed, managed, and delivered numerous refurbs, and I still can’t find that magic square metre cost.
Even though everyone I speak to asks for it — and at times it feels like they’d pin me down until I give them a rate — it’s only useful for that initial “I’ve found a flip; does it stack?” chat.
But please stop there. Leave it at the front door. Here’s why.
There are two main elements, no matter the type or size of the project.
Location: it always alters the cost. In some cases, it could be a 35% swing. London build costs are not the same as Leeds for example.
Delivery Method: this is always overlooked. Managing the project yourself (effectively and correctly) will cost less than employing a main contractor. Either option is acceptable, but it will affect your profit figure.
Now on to the nitty-gritty, and the reason I can’t cost a refurb accurately from the agent’s photos… Every property is different. That’s it. Simple? Not really, it doesn’t help, does it? My point is that every refurb project needs to be costed on its own merit.
One of the biggest mistakes I see developers make is underestimating refurbs.
They buy a property thinking, “It’ll be around £40k,” and it ends up costing £60k or more. Not because they’re careless, but because the traditional way of estimating is based on best guesses, not data.
My favourite quote this year is: “Your Schedule of Works is Your Business Plan.”
How many people would invest six figures into a business without a business plan?Then why do so many people do it with property?
Creating a schedule of works for your refurb project is the key to producing accurate budgets and managing your costs effectively.
A good schedule of works allows you to receive comparable quotes from your contractors that actually reflect the works required. How many times does the builder start and, a few weeks in, you hear the words, “I didn’t allow for that in my price…”?
Having a full schedule of works helps eliminate that, and contractors will love you for it. We are, unfortunately, back in the era where good tradespeople have the monopoly and will be picking the jobs, and clients, they want to work for.
Now, if you’re sitting there thinking, “This guy might be right” (still wish he’d tell me the golden square metre rate though), but you’re also wondering where on earth to start — well, if the project is big enough or the budget allows, a quantity surveyor or estimator can help. This can sometimes be costly. I’m allowed to say that, as I am one, and my next job after writing this is costing a nice new build for one of my contractors.
However, there is another way: The Refurb Calculator.
For so long, I’ve wanted to create a cost-effective tool to help developers cost as many refurb projects as they could physically visit, simply by viewing the project and inputting some information. Imagine instant, accurate refurb costs in minutes. Every rate, allowance, and material price comes from live procurement costs from my team at Help Build, the same costs we use to cost and deliver projects every week across the UK.
Earlier this year, I teamed up with my business partner Rich Devenport from Overstone. Honestly, I was ready to sell my Excel spreadsheet. I was already sat on Barmouth beach with an ice cream from the profits. But Rich told me, “I’m not letting you do that. I’ve wanted to help automate build costs for years, so let’s do it together.” Many late nights and voice notes later, the Refurb Calculator was born.
We designed it so you don’t need to be a cost expert to get accurate results. Just answer a few clear questions — property type, condition, and scope — and within minutes you’ll have a detailed cost breakdown, schedule of works, and budget summary. That means, when you generate a refurb estimate, you’re not just guessing. You’re using the same cost base that professional estimating teams and contractors rely on. You don’t even need drawings.
Sound good? Too good? You can try the Refurb Calculator for free. No setup. No training required. Just jump in, run a real project through it, and see how quickly you can get from idea to accurate numbers. Sign up for a free 7-day trial: refurbcalculator.co.uk
If you’d like to know more, have a demo, or would just like to talk build costs, please contact me using the details below. I’d be more than happy to help with the build of your next project.
Tony Walker Founder & Director of Help Build & Refurb Calculator
Refurbcalculator.co.uk
linktr.ee/helpbuild
0330 133 3228
