To Restore or not to Restore Property in Le Marche

 

The choice as to whether to restore or to buy a building that has already been restored is very often based on insufficient or biased information. In this article we will provide the information, some limited to the market in Le Marche, that is vital to making an informed and rational decision. We also hope to provide a platform for an open discussion on this topic.

 

The elements that will be discussed are –

The cost of restoring compared with current values of restored houses.

The importance of the architect.

Controlling the building process from afar.

A summary of the pros and cons of restoring.

 

1. The Cost of Restoring Compared with Current Values of Restored Houses.

 

The average cost of a house in the countryside that needs complete restoration (substantial structural work, new services and all finishing work to a good standard) is a) €550/sqm (including purchase costs) when a minimum price tag of around €100.000.

 

The average cost of a complete restoration is b) €1200/sqm including tax and architect’s fees. For an example breakdown of costs see http://www.vinciproperties.com/market_information.htm#b1

 

Buying and restoring therefore costs a) + b) = €1750/sqm

The average cost of buying a ready restored house (with a better than average standard of finish) from a developer is €2200-2500/sqm. Whereas the average cost of buying a ready restored house from a private owner is €2000-2500/sqm (where the standard of finishing materials varies greatly).

 

Thus, clearly buying a ready restored house is more expensive than undertaking a restoration. The difference between the cost of restoration and the cost of a finished house, in other words the vendor’s profit, is €450-750/sqm in the case of a developer and €250-750/sqm in the case of a private vendor.

 

In the present economic climate, all the above mentioned costs are negotiable in more or less equal measure. Building companies and private vendors alike are giving discounts of around 15%.

 

2. The Importance of the Architect.

 

It is not difficult to understand how crucial to the successful outcome of a restoration the architect is when you consider what he or she is responsible for:

 

Design and planning

Recruiting the building company

Surveying

Project management

 

These four roles encompass just about all aspects of the restoration process and there is no doubt that finding a trustworthy and competent architect is essential to a smooth and, above all, cost efficient restoration process. The architect should be seen as auditor and first line of control as well as designer of the dream home.

 

The question is, given the importance of the architect, is the risk of not finding the right one too great a risk to take? The answer would be yes if it were not for the fact that there are some safeguards already in place which any owner can take advantage of.

 

Firstly, there exists an official regional price list (il Prezziario Regionale http://www.operepubbliche.marche.it/defaultprezz.asp?quale=generale)  which is updated every year or so depending on global material and local labour costs. It therefore follows that a detailed set of plans and the consequent works specification will give an accurate end cost for the entire restoration. This in turn then provides a bench mark for costing plans, for judging quotations from building companies and for surveying.

Secondly, there are laws which stipulate technical build standards, covering all aspects of the structure and the services, that have to be met. If these standards are not met then the local Comune will not issue a “habitability certificate” (il Certificate di Abiltabilità) and the house cannot be legally lived in.

Thirdly, the architect is legally responsible for all technical decisions that are made and remains so for 10 years after the work has been terminated.

 

These safeguards do not entirely make up for the lack of an honest and competent architect but they do go a long way to helping control the main elements of the process and to determining responsibility were problems to arise.

 

For each horror story of a restoration gone wrong, there are many of successful restorations and happy owners. The trick is to tap into the network of owners that have already been through the process before and ask for recommendations of tried and tested professionals. This, combined with the safeguards mentioned in this short chapter and the owner’s prying eye, will make the restoration just about as easy as it is anywhere else.

 

3. Controlling the Building Process from Afar

 

Quite apart from comunicating regulalry with the architect (see above), there are other ways of keeping an eye on progress, making sure that costs are controlled and that important decisions are not being made in the owner’s absence.

 

Firstly, there are a number of project management companies, such as Treehouseitaly, that will not only manage the restoration process on your behalf, but that will also convey in precise terms the essence of what the owner is aiming at - this can be very difficult to do without fluent Italian. A project management company will be at pains to make sure that the owner is kept abreast of developments and that tiresome problems are dealt with so that during a visit the owner can use his time efficiently.

 

Secondly, there is an increasing number of building companies that employ digital technology to keep clients informed of progress. Take for example Panichi Srl, a building company from Ascoli. On their web site there is a page, reportage, dedicated to each building site with options to see progress by clicking on any specified day or week. To take things a little further, Panichi Srl will also do a live webcam report whilst walking around the site. This means that individual problems can be handled without interupting work in progress.

 

Clearly, the owner’s presence on site is essential when the restoration is in it’s final phase and questions of style and taste of finish arise. But with a good team of professionals much of the restoration process can move forward without owner intervention, especially in the early stages where only good technical knowledge will allow any sort of worthwhile contribution - how many owners, for example, know enough about underpinning to be able to judge work well done or not?

 

Finally ofcourse, owner control is underpinned in the contract agreed with the building company. A well written contract will give the owner financial leverage (no payment until work is satisfactorily complete) and will include a clause on procedure in case of unforeseen issues.