We have all heard of the most three important things in real estate. That being "location, location, location". In uncertain marketplaces, and uncertain financial times, perhaps that mantra should be "ugly, ugly, ugly".
When real estate markets begin to slow, inventory builds. And competition between home sellers equates to the most desireable looking homes selling at prices once reserved for the less visually deserving, and leaves the less attractive homes to sit and sit on the market for extended lengths of time. Since location is a constant that cannot be altered in any real estate equation, the only alterable detail becomes the condition of a property. Uglier homes are naturally going to be the losers in the selling equation of any slow real estate market for those particular sellers.
And in walks Johnny and Suzy Buyer, willing to snag the visually less appealling homes at a severe discount. Buying someone elses dirt, cans of old paint, and stained red shag carpeting can put a significant amount of sweat equity at your disposal. Buying ugly can also allow buyers to upgrade in either size, or location. Simple painting, cleaning, floor resanding, along with countertop and appliance replacement can speak volumes towards the showing ability of your home. And with the advent of local mega-warehouses, shopping for and installation can be handled in one visit to your local warehouse depot.
So if you are in the market to buy real estate in a slowing real estate market, think about what might be your new mantra of buying "Ugly, Ugly, Ugly".