On the House: Why Buyers Should Give Unloved Homes a Shot

My advice is to look beyond the move-in ready homes oozing curb appeal.

The unfortunate truth is the nation is in the throes of a severe housing shortage. Everyone wants well-located, turnkey homes that are priced to sell, but there aren't enough of these unicorn properties to go around. The competition for them is likely to remain fierce. That's going to keep prices high and many of these abodes out of reach for many first-time buyers.

If you have a more modest budget, you might want to give those overlooked, unloved homes that have been languishing on sites like Realtor.com® another look. You know the ones. The homes with an awkward floor plan, the fixer-uppers, the ones on busy streets, and those that don't look like they’ve been renovated within this century. I’m talking about the not-so-pretty homes that have been on the market for months.

Some of these properties might need just a coat of paint and some light renovations to become the home of your dreams.

And if these residences have been sitting on the market for a while, you might be able to negotiate some steep savings. If the sellers haven't received any offers, they might be amenable to price reductions or mortgage rate buy-downs (which can lower a buyer's mortgage payments for the first few years of homeownership), or even kicking in closing costs assistance.

Right now, with mortgage interest rates just under 7% and high inflation, every little bit of cost-cutting can help.

So can you look below the surface and see the potential in this property? Is the home located in the area where you hope to live? Are its issues superficial and easily remedied?

I would caution you to have the home inspected, though, before committing to a sale. It's one thing to want to replace old carpets with hardwood flooring and another if there are foundation cracks or a roof that needs to be replaced. Structural and mechanical problems in an older home can be extremely expensive to remedy, especially if the seller doesn't cover or contribute to those costs.

You might also want to consider whether you’ll be able to resell the home when you’re ready to move on. If the location is less desirable, such as being on a highway, or there's little you can do to boost the curb appeal, that's something to consider. You may find the discount you receive on the home may be worth it.

When I was looking for a home in 2021, there was one in the neighborhood where I wanted to live. Even better, the five-bedroom house on a cul-de-sac was listed at a very attractive price. There was just one big problem: It was hideous.

The home looked like it had once been a classic Colonial that had undergone two ill-conceived additions on either end giving it the appearance of stretched-out putty. The windows didn't line up and some shutters were missing; worst of all, the original house had a sloped roof while the bookended additions had flat roofs.

The interior photos on Realtor.com weren't any better. Garish carpeting covered the house, which looked like it hadn't been updated in my lifetime. The kitchen was basically a time capsule.

I wound up purchasing a home in the same neighborhood as this house, at a higher price for less square footage. This abode lingered on the market for more than a year and underwent a significant price reduction at the height of the COVID-19 pandemic buying spree before an out-of-town couple scooped it up. They had been looking for a while and needed the extra bedrooms and space for their growing family.

There is a buyer for every home—at the right price.

So try to be open-minded when scrolling through home listings. Give the unloved homes a chance. Some fresh paint, a scented, odor-eating plug-in, and a little bit of elbow grease might make all the difference.

Clare Trapasso is the executive news editor of Realtor.com where she writes and edits news and data stories. She previously wrote for a Financial Times publication, the New York Daily News, and the Associated Press. She also taught journalism courses at several New York City colleges. Email [email protected] or follow @claretrap on Twitter.

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