Shopping for an ugly house

By
Real Estate Agent with Realty Group Referrals 16766

Shopping for an ugly house

 

Why are smart home buyers shopping for an ugly house?  The simple reason is that most purchasers want the attractive houses and it is easier to find a bargain if the house does not look too good. Investors have been buying ugly houses for decades and it is now a good time for savvy home buyers to seek opportunities.

Ugly houses are frequently found in the inventory of lender owned foreclosures.  Many foreclosures have been vacant for a long time and need major repairs and improvements. Estate sales provide another source for ugly houses. Seniors sometimes live in a home for many years with no updating efforts.

One of the challenges is to find an ugly house that has the potential of being a charming residence. Home buyers with imagination and personal skills are up to the challenge.

Mortgage financing may be an issue when home buyers want to purchase a fix-up property. Our experience is that the FHA 203(k) financing is ideal for many purchasers.  By using FHA 203(k) financing, the cost of improvements can be included in the first mortgage and all of the repairs can be completed before the move in date. Prospective purchasers should make sure they are working with a loan officer that has experience with the 203(k) programs.

We love creative home buyers that know how to identify purchase opportunities.  

 

Kentlands, Flowers IMG_6015

Roy and Dolores Kelley Photographs

Posted by

Roy and Dolores Kelley Photographs

Roy Kelley and Associates

 

Roy Kelley, Associate Broker

Realty Group Referrals (Retired from RE/MAX Realty Group)

6 Montgomery Village Ave., Suite 200

Gaithersburg, MD 20879

Main Office:  301-258-7757 (You will not reach me at this number)

Send an email message if you need my phone numbers. I will be happy to recommend a real estate professional if you are moving to the area.

Comments (76)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

is the question

Aug 01, 2013 01:59 PM
Brian Sharkey
SharkeyRE LLC - Tequesta, FL
SharkeyRE - #SouthFloridaBroker

Now a'days people are searching out the lower priced homes that they can fix up a bit and make their own.

Aug 01, 2013 02:24 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Roy, there are multiple offers on so-called good, staged, decorated homes - rightly so. That's where a buyer should see the value in ugly homes and get a deal!

Aug 01, 2013 03:20 PM
EMILIA B COOPER, REALTOR® SFR.NCHSE.AHWD
LAROSA REALTY - Orlando, FL
Short Sales, Foreclosure & Bank Owned Real Estate

Roy, many ugly houses out there has great potential ... Great blog post!!

Aug 01, 2013 03:37 PM
Eric Fischer
Coldwell Banker Pioneer Real Estate - Moreno Valley, CA
Moreno Valley, CA Realtor

Great Article Roy, We have had many ugly house that are beautiful now thanks to the foreclosure market.

Aug 01, 2013 04:07 PM
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

My Aunt Debi Byington used to flip homes like this. Her business card read, "We Buy Ugly Houses!"

Aug 01, 2013 04:12 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Roy - Ugly houses just don't have as much competition, but buyers must recognize the potential.

Aug 01, 2013 04:39 PM
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566
Instant reblog with this comment... This is a good example of find out where the crowd is headed and then choose to head a different direction. Yes, sometimes this path leads you to success or recognition. Sometimes is shows creativity or genius. Take a good hard look to see if ugly can become downright lovely.
Aug 01, 2013 09:27 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

It is always good to receive your comments. Have a great day and a wonderful weekend.

Thanks, Cheryl, for the re-blog.

 

Lewis Ginter Botanical Garden IMG_8749

Photograph by Roy Kelley using a Canon PowerShot G11 camera.

 

Roy and Dolores Kelley Photographs

Aug 01, 2013 10:01 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

Congrats on the feature Roy.  I used to buy ugly houses and make them pretty.  There are some deals to be had if you can look past the ugly!

Aug 01, 2013 10:18 PM
Tanya Van Blake-Coleman
Van Blake-Coleman Realty, St. Thomas/www.talk-to-Tanya.com - St Thomas, VI
Improving the Quality of Your Life

I love "ugly" houses too. They really do present the best opportunities. You have to have a good eye and be able to distinguish between cosmetic and real issues. It is for the more experienced buyer.

Aug 01, 2013 10:40 PM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

The smell of a foreclosed home....where many think "OOOhhhhhh, yuck" is exactly the home to snack up for the right price. The dog that is a frog that becomes a prince, princess takes an eye to look for the one structural sound but cosmetically challenged. With a few ten foot pole marks all over it.

Aug 01, 2013 11:19 PM
Anthony Rollins
Keller Williams Realty-Overland Park - Overland Park, KS
The Adam Butler Team

Roy,

Vision and imagination are what is necessary to see through any ugly duckling of a house.  Vision is what creates beauty, which is what creates value in any purchase of a home needing updating.

Cheers!

Aug 01, 2013 11:34 PM
William May
Century 21 / Union Realty - Torrance, CA
Your Family Realtor For Life

Roy, 

your post  has reminded me of that funny movie back in the day " the money pit" if you find the right ugly house it will pay off for you and not put you in the poorhouse. 

Aug 02, 2013 12:58 AM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Like anything if you can see beyond something in its current state the chances are much higher you are getting a deal. I hear of this frequently

Congrats on your star and keep taking pics my friend

Aug 02, 2013 01:14 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

It is always good to receive your feedback. Have a great weekend and an enjoyable August.

 

Orchids, Lewis Ginter Botanical Garden IMG_8738

Roy and Dolores Kelley Photographs

Aug 03, 2013 02:03 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Roy, There are sign all over town saying we buy ugly houses. An investor is just looking at the numbers and knows they can change the asthetics.

Aug 04, 2013 03:50 AM
Bette Gottwald
UNITED REAL ESTATE | Central PA - Mechanicsburg, PA
"Bet"on Central PA Real Estate!

Roy, I was just about ready to read your blog when CBS News featured a former resident of a Baltimore City neighborhood, who is disgusted about "absentee landlords" and how neglected the community is. This woman started a very interesting website -- you may find this interesting reading, although I realize you are almost an hour away: http://slumlordwatch.wordpress.com/about-us/

Aug 05, 2013 10:12 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Yes Roy.  Investors are looking for ugly houses that can still be fixed and get greater opportunities.

 
Aug 06, 2013 11:21 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I had very muggy weather for my early morning photowalk through Kentlands.

Keep cool and have a great day.

Jul 12, 2016 11:52 PM

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