I’m a Real Estate Agent: These Four Property Types Are Hidden Gems
Searching for a new home can feel like treasure hunting. You clearly envision your ultimate reward: a cute ranch-style house with ample yard space or a single-family home in a great school district.
Like any treasure hunt, you might have to overcome some traps and pitfalls – looking through some houses can make you feel like Indiana Jones, chased by a giant boulder. But if you’re willing to look beyond your initial treasure map, you could find some hidden gems of properties.
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GOBankingRates talked to real estate agents to learn more about the kinds of properties that might be overlooked, though they might just be dream homes in the making.
Master Planned Communities
If a pool is at the top of your must-have list for homes, you might initially imagine your backyard swimming hole to cool down and show off your grilling skills to friends and family. But all that luxury requires a whole lot of hard work.
Melissa Dierks, a realtor, CMRS, managing partner and team founder at RE/MAX Fine Properties, explained that in-ground pool maintenance is extensive and expensive.
“In-ground pools require regular care and investment in chemicals like chlorine to keep the water hygienic,” said Dierks. “Due to wear and tear from the elements over time, repairs like resurfacing the pool’s surface and filter system replacements [are required].”
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Dierks added that these issues, like weekly skims and vacuuming, might make a master-planned community with a pool a better option. With master-planned communities, homeowners enjoy pools or other communal features like playgrounds or sports centers, without taking on the direct expense and responsibility for their upkeep.
“Residents of master-planned communities can enjoy well-maintained amenities without the financial burden of installing, maintaining and landscaping these features on their properties,” said Dierks.
Homes Near Up-and-Coming Communities
While you may have a list of neighborhoods in mind, Sarah Strohschein, a real estate advisor with Engel and Völkers, encouraged people shopping for homes to expand their horizons. Despite a neighborhood’s look or feel now, it might be a future hub of culture or business.
“Properties … that have the potential to be hidden gems are those in overlooked areas or neighborhoods, less desirable neighborhoods adjacent to already established and thriving neighborhoods and up-and-coming areas that have plans for emerging industries or revitalization,” said Strohschein.
Fixer-Uppers with Real Potential
A picture may speak a thousand words, but don’t let online pictures of a home tell its full story for you.
With due diligence, research and the counsel of a trusted real estate agent, Strohschein feels you can find properties that might not look perfect online but could be great with some overhaul.
“Undervalued properties, neglected, or poorly marketed properties [might mean that] the owner/seller may have a unique circumstance and is motivated to sell quickly at a lower price,” said Strohschein. “Also, take a look at distressed properties. Don’t judge the property based on the online photos or current condition. Consider the property’s potential as a whole and not at one given time.”
She advised homebuyers to take a clear-eyed assessment of the property in question, ensuring there aren’t major structural, health or safety issues and research how the land’s zoning before adding onto the original structure. As you approach buying a fixer-upper, you should ask what the estimated costs of renovations would be.
Strohschein counseled homebuyers to figure out whether they’re looking to hold on to their home for a few years or if they’re looking for an investment rental property. Whether they want to buy, renovate and resell within a certain time frame is also helpful.
“Your real estate expert can provide you with information like resale or rental comps and ARV information along with other important data,” said Strohschein. “Finding hidden gems can take a little extra time and effort but most often turn into a more profitable investment.”
Homes with Potential for Valuable Renovations
Maybe the thought of fixing up an unfinished basement or braving an attic space gives you the shivers. But these are precisely the kinds of renovations that grow your home’s value over time.
“The best kind of gem for buyers is one with the potential for a renovation that will make it more valuable. These are things like unfinished basements or attics that can become extra rooms,” said Mark Severino, real estate investor in Dallas, Texas and owner of Best Texas House Buyers.
By showing some creativity, you can convert rooms into new spaces beyond their intended purpose. For example, Severino says a room that could originally be designated as an office could become an extra bedroom with the addition of closet storage.
“That three-bedroom two-bathroom house with an office is valuable. But a four-bedroom house will sell at a much higher value,” said Severino.
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This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: These Four Property Types Are Hidden Gems
