You’ve saved a solid down payment, set aside money for an earnest money deposit, have funds for inspections, moving so you aren’t stressed, and closing costs. Now, you’ve spent a lot of time online and walking through properties. But, there’s just nothing that really resonates. Finally you stumble across the perfect home. It’s got nearly all your must-have items, a few wish list features, and is a short commute. You can wait to see it in person and when you arrive, you see it and it’s next to an eyesore.
Should I Buy a Home Next to an Eyesore?
Now that you’ve discovered your dream home is next to an eyesore, you wonder whether or not it’s a good idea to even consider buying it. And, it doesn’t matter what it is — a cell tower, power lines, an abandoned property. Regardless of what the eyesore is, it is large, it is ugly, and it is unavoidable. But, you’ve come to see the inside, so you decide to walk through the home only to find the listing photos that lured you were spot on accurate.
“Abandoned homes can be an unpleasant sight. Overgrown lawns, boarded windows, sagging gutters, and unsightly mold—not to mention, a higher risk of fires, vandalism, rodents, and mosquitoes. Properties are often left to deteriorate while in foreclosure limbo; the owner is already gone but the bank can’t take possession until the foreclosure process is finalized.” —Realtor Magazine
You’re thinking about doing a couple of DIY budget-friendly home improvements, but other than those, the house has it all. Practically everything is just right with the house, it’s only that awful eyesore that’s causing you to have reservations. It’s your intuition warning you this might not be a good investment. And, there’s plenty of reason why you should really listen. Here are the reasons you probably should not buy a home next to an eyesore:
- Resale will be difficult. Okay, so the eyesore that’s causing you to hesitate big time will indeed be the same obstacle to selling the house in the future. Potential buyers will have the same objection and it will turn off just about anyone who sees the property. If it’s another home that’s run down, then time might be on your side, although there is no guarantee. But, if it’s a permanent fixture, such as power lines or a cell tower, it’s going to remain a problem.
- Less property value gain. Since there is an eyesore next to the house, it’s going to have a real and long-lasting impact on the property value. The home simply won’t gain in value as much as comparable houses that aren’t plagued by the presence of an eyesore. Although the house will go up in value, it’s going to underperform its comparable peers.
- Having little to no control. If it is a cell tower or power lines, you’ll have no control over it. Huge infrastructure like those examples just aren’t relocated. Even if it’s an abandoned, run down house, you’ll have little to do with its condition or future. Sure, there is a possibility someone will buy it and rehab it, but it’s not certain to happen. If you do buy the home, it’s a risk you’re taking, betting on a buyer to renovate it.
- Might present a real safety issue. Another consideration is the fact it might present a safety issue. Power lines are linked to several health issues. Even if there’s no risk of health problems, if a storm knocks down those power lines, that will be a huge safety issue. And, if it is an ugly, abandoned property, it’s not very likely that it is a safe place.
If you’d like to know more about choosing the right home for a long-term or short-term investment, please don’t hesitate to phone me at 407-616-7286, I’ll be happy to speak with you.