The less people who want what you’re after, the easier it will be to acquire what you want. Nothing secret about that, it’s one of the basic laws of nature! Competition drives up both cost and desirability. Ugliness is my number one price reducer! Most people tend to back away from anything that’s ugly! Also, most people do not possess the vision, or have the training to spot value in the midst of pure ugliness. Learning to judge value where others can’t, can earn you a fortune in the house fix-up business. Naturally, you must possess the skills to fix the problems once you find the right property.
Sellers who own ugly rundown properties (income units) often find very few buyers willing to make serious offers because most are looking for attractive, trouble-free properties! Even if they do make an offer, it’s generally a “low ball” offer, which often insults the seller. Insulted sellers don’t make counter offers, which of course, stops the deal cold. Naturally, rundown properties are worth less, but many times a workable purchase agreement can be reached by first determining what benefits the seller will get when the property is sold. It is not always money.