The Homes Most Buyers Overlook: How to Find Opportunity When Everyone Wants the Same Thing

Compared to many other big cities, St. Louis is a relatively affordable place to live. And in today’s tough economy, that makes it a rather attractive place to live too. That’s great for sellers, but for buyers, it means more competition and less inventory. 

It’s easy to get discouraged about finding the right home when all the good ones get snatched up within days or weeks of their initial listing. But, sometimes great homes are overlooked. Sometimes it’s because they require a little extra work, other times it’s simply because of bad marketing. With the right mindset, buyers might just be able to find the perfect home hiding in plain sight.

Move-in ready homes are popular. Most sellers and their agents know that neutral colors, clean interiors, and simple, attractive landscaping appeal to buyers. This combination, along with a lack of structural issues and a good location, generally means the houses sell fast when there is a lot of competition. And buyers focusing only on these houses might be setting themselves up for disappointment. 

In a hot market, a buyer can get his or her heart set on one of these homes, only to find that someone else has already made the first bid. Even when they do make a bid, they might find that they’ve been outbid the next day, putting the house outside of their price range. This might even happen over and over, making the buyer feel like they’ll never find a great home that’s actually accessible. If you find yourself in this situation and don’t want to wait out the hot market, it might be time to look a little deeper and do so with an open mind.

Not all houses that get routinely passed over are inherently bad. In fact, many of these homes end up being the perfect house for the right buyer. As long as buyers keep an eye out for major problems, like termites, outdated electrical systems, and major structural issues, they might find that their dream home wasn’t the most popular option after all. There are several types of homes that frequently get overlooked.

The Outdated House (With Good Bones)

Features like pink walls, decades-old wallpaper, yellowed linoleum flooring, or ugly carpeting can throw off a lot of buyers, but these are generally easy fixes. Often, these are the homes that were lived in by a family for many years and they have finally moved on. They might have maintained the house well, so that there are no major issues, but they never felt the need to update the style. 

These homes can be a great opportunity for a fixer-upper. Sure, it’s a little extra work, but these homes allow for the flexibility to decorate in the way you would prefer instead of starting with complete neutrality. A lot of older St. Louis homes even come with one-of-a-kind features that you rarely see in modernized homes, like stained-glass windows, unique fireplaces, ornate fixtures, or beautiful hardwood floors. They also offer a lower price with room to immediately increase the value with a few updates.

The Listing With Terrible Photos

Great looking photos don’t mean a house is in great condition, and the reverse is also true. If the house looks messy or disorganized, or the photos are blurry or unprofessional, the house simply does not make an impression on the viewer. This is not necessarily a sign that the house looks bad when cleaned up, but that someone did a poor job on the listing or that it was rushed. It could also be that the current owner still lives there and did a poor job organizing and cleaning before photos.

If the price is right and the listing matches up with a buyer’s wish list, it might be worth taking a tour of the house. Even if the house is still cluttered with the current homeowner’s belongings or it isn’t perfectly clean, buyers can get a much better idea of the house’s potential in person. With a little imagination and paint, it could end up being a dream home.

The Great House in the Wrong Location

Houses go fast in neighborhoods like Lindenwood Park, Tower Grove South, Webster Groves, Kirkwood, and other popular areas, especially if they are priced affordably. So, buyers with their hearts set on high-demand neighborhoods may have a lot of trouble finding the right home. But expanding the search to less sought after areas might just be the key to finding the perfect house.

Reconsidering their options, like what kind of commute or school district is acceptable, might just allow buyers to find a lovely move-in ready home within their budget. Areas like Affton, St. Charles, Fenton, or across the river in Illinois can often offer nice homes at more affordable prices and less competition.

So, how do buyers branch out without making expensive mistakes? Buying a fixer-upper might work out great for some people, while others end up in way over their heads. The same goes for people who settled for a neighborhood they weren’t sure of. Here are a few of our best house hunting tips for buyers looking to expand their horizons:

• Take inspections seriously. In a survey by Today’s Homeowner, 51% of people buying fixer-uppers say they underestimated the amount of work. Taking inspections seriously can help to avoid this problem. Home inspection red flags, like mold, leaking basements, and shifting foundations, can create major headaches that are often not worth it. Make sure to find out how much each problem will cost in the long run before taking the plunge. 
• Do some research on the neighborhood. Expanding your search radius might usher in some great options, but be sure to double check that the neighborhood is a good fit for your needs and expectations. How far is the commute? Is the neighborhood part of a homeowners association with extra rules and fees? What are the neighbors like? What is the crime rate? Be sure to ask the right questions before making a final decision.
• Look into specialized loans for fixer-uppers. Buyers looking to buy a fixer-upper may be able to get a renovation loan, which is a mortgage that provides enough money to buy a home and pay for the renovation at the same time.
• Don’t settle. In the stress of searching for the right home, some buyers might put aside some of their must-haves only to regret it later. When giving something up, such as a big yard or short commute, make sure it’s something you can actually live without. 
• Negotiate. When buying an outdated home or a home with problems like a bad air conditioner or roof damage, negotiating with the seller is usually an option. Often the seller will fix certain problems just to get the house sold. A good realtor can be a great asset in these kinds of negotiations.

When a buyer is struggling to find the right home in the right price range, a good agent becomes the best resource. They know all the house hunting tips and tricks, the ins and outs of every neighborhood in the region, and what constitutes a risk vs. an opportunity when buying a fixer-upper. This takes a lot of stress off of the buyer and makes the process faster and much smoother.

The real estate agents at BHHS Select properties will help you sort out what overlooked houses can still work for your needs. They can give you all the details of the neighborhoods you are considering, and help you determine what kind of renovations or cosmetic touch-ups you can actually handle, while ensuring you get the best deal possible. Find one of our offices near you today to get help navigating the St. Louis real estate market.