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When It Makes Sense To Buy An Ugly Duckling

By
Mortgage and Lending with CrossCountry Mortgage, LLC NMLS #3029 NMLS #126036

Move-in ready” homes are desirable — there’s no doubt about it! But sometimes it makes better financial sense to opt for a house with dated decor and a less than trendy kitchen or master bath. You may not get your dream home immediately, but the opportunity to transform a property into your own swan can be rewarding. It can also be easy on the pocketbook.

When looking at Ugly Ducklings, however, look first to structural integrity and the condition of major home systems. including plumbing and septic, driveway and drainage. A home inspection is invaluable, even though no inspector can guarantee trouble-free systems. Inspections will alert you to potential problems: Needed roof repairs, leaking faucets, inoperable appliances, termite infestation or dry rot and the like.

All home components have a life span, and if you’re buying an older home, try to determine the age of its systems, including heating and air conditioning, and kitchen appliances.

Here are some ways to weigh the pros and cons:

Electrical Wiring

Assure that the electrical panel and service to the home are ample for your needs. If the panel is undersized or the home still has aluminum wiring, you’ll probably want to check on repair and replacement costs: In some older homes, it might be a deal killer. But it also might be an opportunity. You’ll have to weigh the options.

Roof

A roof that has been well-maintained, and that currently has no major deficiencies, is a bonus. If there are existing problems with shingles or gutters, it’s prudent to get an estimate for needed repairs from a qualified roofer. Use it as a bargaining chip in negotiations.

HVAC

Heating and Air Conditioning are major “quality of life” considerations. Whatever systems the house has installed should be in reasonable condition, and should heat and cool appropriately on demand. That doesn’t assure that you won’t have some costs sooner rather than later. But, depending on the age of the systems, you make get many more years of use.

Appliances

Older appliances may not have all the bells and whistles of stylish new models. But kitchen updates are expensive; the most costly items include cabinets and appliances. Buying a house with a vintage kitchen means that you can undertake a redo on your own terms, doing a little or a lot on your own timetable and with a specific budget in mind. 

Decor

Paint and simple fixes can change the whole look of a room, and put a new face on a whole house. A little elbow grease and a lot of imagination will easily compensate for the extra price of a remodeled home with all the newest materials. 

Landscaping

If you’re looking for bargains, look beyond negative curb appeal. Consider lot size and potential, and know that with a little cash and a lot of sweat equity, a nondescript yard can be transformed. Choose low-maintenance plants and reap double rewards.

Buying property in need of TLC, a Plain Jane, or the ugliest house on the block can be a wise decision if you have a little patience. But you might have to also invest some time and effort, along with some cash, to make it a thing of beauty. 

If you are in the market for a fixer-upper, be sure to contact your trusted mortgage professional for a pre-approval and to discuss financing options.

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For help or questions contact:

Joe Gonzalez

Senior Loan Consultant -  NMLS #126036
GMH Mortgage Services, LLC
625 W. Ridge Pike, Building C, Suite 100 | Conshohocken, PA  19428 | Direct: 610-355-8039 |  Cell: 610-739-6563

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Comments (3)

Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Ugly ducklings are fun to transform, as long as the structural and mechanical systems are in good shape. I've taken several ugly homes and made them pretty again. Some people can't envision the end result; that's why we have choices. ;-)

Aug 21, 2018 01:50 PM
Joe Gonzalez

Exactly.  As long as you have a solid structure you're set.  A little time, effort & creativity go a LOOOOOONNNGGGG way! 

Aug 22, 2018 11:30 AM
Allie Angeloni
Long Realty - Oro Valley, AZ

Excellent Blog Joe Gonzalez, and all great points that you covered!  A fixer-upper can truly be a diamond in the ruff, and can become a lovely custom home.  You can make changes - either reno's or up-dates on your own timeline, within your own budget.  Inspections are crucial, because you can only see what your eye can see, and you don't know what you don't know!     

Aug 21, 2018 03:36 PM
Joe Gonzalez

Thank you.  Yes they can be. It's actually what I personally did.  I needed a decent home in a specific area with an in law suite.  Talk about specific! Anyways in the end my ugly duckling because a great home that I now share with my in laws. Worked out beautifully! (pun intended)

Aug 22, 2018 11:29 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have done several of these but harder to find nowdays

Aug 21, 2018 07:20 PM
Joe Gonzalez

If that's not the truth! I've done a # of them myself & well it's tougher & tougher but not impossible! Just have to search. 

Aug 22, 2018 11:25 AM