Over the next several months Andy and Rebecca painted the interior, upgraded the kitchen, changed the floor coverings, and replaced the furnace, as well as changed the unsafe aluminum wiring to copper. After three years they saved enough money to be able to replace the vinyl siding with sea foam green FiberCement textured planks and white trim. The ugly duckling became a swan. Continue reading →

• Look for areas where prices have steadily increased over the past few years and where homes for sale may be hard to find.
• Visit new subdivisions and growing areas, because values tend to go up over the long term.
• Identify areas that may not be the best now, but where changes already in the works will make them more desirable. Examples include redevelopment areas, neighborhoods with new medical centers, college expansions, and other projects that add to a area’s desirability as a place to live.

Small bungalows and cottages in older neighborhoods dotted throughout nearly every city can be good investments if they are near a university, downtown, or other desirable attractions. However, these same homes built near an airport or business park will go for many thousands of dollars less and be difficult to sell. It’s all a matter of location.

In one instance, Andy and Rebecca found a 1960s split-level home near a small private college and close to an upscale shopping area. The owner had died and the two heirs, wanting a fast, trouble-free sale, were willing to discount if the buyers would buy ‘‘as is,’’ with no concessions.

Looking at similar houses in the neighborhood, Andy and Rebecca noticed that many owners had remodeled or upgraded them. By comparison, the home they were considering stood out as the neighborhood ugly duckling. This spelled opportunity, and they arranged for a fast closing.

It’s important to remember that location comes first, because better areas hold their value more than do less desirable areas. Continue reading →