10 Reasons to Buy an "Ugly" Home
By:Jennifer Noonan -
June 5, 2017
You Could Get a Great Deal
Sellers, in most cases, know what they’ve got. So if they have the ugliest house on the block, they'll likely set a lower asking price, with the knowledge that fewer people will have the imagination to see its potential. If an out-of-date or neglected house has great bones, you could scoop up a diamond in the rough, for the price of cubic zirconia.
The seller of an ugly house knows they’re lucky to get a few bites, let alone a serious buyer. Once you make an offer, they'll most likely speed through negotiations to lock in a contract. That's good news for you—you could be in your new home more quickly than you ever imagined.
You Can Make It Your Own
When you buy a home with down-and-out curb appeal, there’s only one way to go—up! Once you get down to rehabbing and renovating, you have the opportunity to choose exactly the materials you want to create a custom look and feel that speaks to you. As you'll quickly discover, the freedom of undertaking a total makeover let’s you really strut your style.
Potential for Seller Financing
Banks could be less willing to approve a loan if a home is in bad condition. If a smart seller wants to unload their property—and fast—they might be amenable to holding the note and collecting the interest from you. Not a bad deal for you; dealing with the seller is a lot easier than initiating a mortgage application.
In order to make a sale on an undesirable property, a seller might be more willing to agree to your offer. If you make a good deal, that could include accepting credits that would reduce closing costs, or result in a lump sum of cash to the buyer at closing.
Even older homes that are a mess inside often have an upside in the yard. Unlike new homes where new landscaping has not yet had a chance to become established, an old property may have mature trees and plants that will boost curb appeal, not to mention your home’s value, once you’ve updated the facade.
Sadly, without proper maintenance, many historic homes fall into disrepair, becoming the ugly house on the street. But inside, valuable architectural details may be hiding in plain sight. Stained glass windows, curved staircases, high-profile moldings, and built-ins are just a few of the treasures that may await you. Once the home's structure has been brought back to life, these historic details will make your home truly unique.
Location, Location, Location
Location trumps pretty much everything in real estate. If you’ve found an ugly house in a great location (say, close to the beach, or within walking distance to town), you've stumbled into a great investment. Pretty it up and you've got a house that will be worth a lot more—and give you a quicker seller when you decide to put it on the market.
An ugly house situated on a big lot could have big potential. Many older, decaying homes are outside of subdivisions where larger properties are the norm. That gives you the opportunity to build an extension to the living space, and create your dream home.
Future Home Valuation
If you buy the ugliest house on the block and give it a great makeover, the value will rise by a larger percentage than if you’d bought a great-looking home a few doors down. That boost in value gives you the benefit of a greater profit when you decide to sell.