Cluttered, grimy or just plain rundown homes are, more often than not, an opportunity to bag a property bargain. Gimme an ugly duckling any day. Homes that haven’t been professionally styled or that smell like cat litter will drive most of your competition away.
My own best property buy happened exactly that way. I watched potential buyers literally drive away without even getting out of the car. But inside, under a lot of junk, I found a real estate gem that made an easy peasy 35% profit just two years later with an inexpensive revamp.
An unkempt home can point to years of missed maintenance and hefty repair bills, but that’s not always the case, and an experienced eye can tell the difference. Often, homes that aren’t marketed in their best light are forced sales, like deceased estates or vendors in financial distress. Or maybe they’re just badly tenanted, and the vendor can’t be convinced to give up rental income, no matter how strongly their agent recommends it.
And why do agents recommend a quick makeover and designer styling? Because it sells! Inexperienced buyers are easily swayed by pretty packaging. I know, because amateur me learned that lesson the expensive way.
So here are some tips to help you find that elusive diamond in the rough:
1. Potential
Will a simple reconfiguration of the floor plan add value? Can you bring in more natural light with clever placement of windows or skylights? Is there scope for dual rental income to help pay for renovations?
2. Good bones
Be wary of properties with huge cracks, serious roof leaks and severe rising damp. Rising damp is fairly common in Sydney’s inner west, but in some cases it can be easily managed or even fixed. I always advise my clients to get a reputable building report first, then arrange quotes for repairs, so we can make an offer accordingly.
3. Well proportioned rooms
Professionally styled bedrooms are often fitted with double beds to make them feel bigger, and living rooms are styled with impractical lounges and teeny tiny dining tables. Check the floor plan carefully or bring your tape measure, and work out whether the space will genuinely work for your lifestyle.
4. Good infrastructure
Your inspector should check the electrics, plumbing and any gas installations. Again, almost everything is fixable, but it’s best to know what you’re up for so you can work out what you can and can’t afford. Knowing the cost of repairs is also great ammunition for negotiating a better price.
5. Poorly marketed properties
Badly written copy and poor quality photos will definitely affect how many buyers show up on inspection day. And don’t get me started on agents from out of the area...
Most importantly, keep an open mind! A willingness to bring the shine back to a less than perfect home is the best way to uncover a property gem. If you’d like a hand finding yours, I’d love to have a chat, no strings attached.
Gaby Ferreyra
gaby@scoutproperty.com.au
