Let’s face it, not everyone can live in a mansion overlooking the ocean or have a palace within a gated community. There are plenty of homes out there that have a lot of work to do. This does not mean that these homes cannot be one person’s dream home someday.
How is this possible you ask? It is possible by finding the potential in a home and making appropriate adjustments to make it work. There are many homes out there people consider ugly, but as the old saying goes, one man’s trash is another man’s treasure. Investing in ugly homes is a growing trend in the real estate market.
For instance, there might be a home that has poor siding or has a leaky roof. These can be fixed and in a short amount of time the house is better qualified to sell. Investors can then take the newly renovated home and find potential buyers. With the real estate market starting to slowly pick up again, new home buyers are looking for pretty homes. This means there are a lot of ugly homes that are being overlooked.
There are also still foreclosures happening at a fairly steady rate. This provides another opportunity for savvy investors. Investing in a foreclosure at the right price can potentially turn into a great profit in a short amount of time.
Rehabbing these ugly homes provides two vital services to the community at large. It helps the overall real estate market recover, and it raises property values within the home’s neighborhood.
As mentioned before, home buyers are looking for good looking, viable homes. They do not want to buy a home, just to spend even more time and money fixing it up so it is up to their standards of living. Making an ugly house beautiful means that home will spend less time on market, and more time as a home for a family.
If an ugly house is on market for a long period of time, the neighborhood is affected. Not only is it depressing to have an abandoned home, but home prices throughout the neighborhood fall. It is in the best interest of the community to have a tenant in the home, as either a new owner or a renter. Fixing up an ugly house and finding a buyer in turn raises the market value throughout the area.
Ugly homes might be an eye sore, but they provide opportunities for investors to make a profit while helping communities out at the same time.