By Erin Lindsey, Founder, Escape Brooklyn
Confession time: I love Ugly Houses. I’ve been on the buyers side of three properties, two of which were utter and complete dogs.
As an Upstate New Yorker, designer and real estate enthusiast, I tell all my friends who are looking Upstate to consider something ugly.
In the current market, turn-key dream homes aren’t that attainable. They almost always go into contract within the first week of listing, and almost always over asking price. There’s just too many buyers and too few homes.
That’s why I’m giving this unconventional advice. Can’t get an offer accepted on a house you like? Buy an Ugly House, as I did (I’m excited to share my own, the photo above and detailed below) and turn it into an Amazing House. Or a Cute House. Turn it into whatever kind of house you like.
Below, we’ve outlined a few reasons why, with some commentary from real estate professionals and renovation experts. Then get fired up to buy your own Ugly House, with some tips on where and how to start.
You’ll Get a Better Deal
In many cases, agents and owners on the sellers side know what they’ve got: an Ugly House. They’re way less likely to push the market price because they know the pool of people who have the imagination to see its potential, is small.
If you’ve found an Ugly House whose price is pushing the market, hang tight. Once the crickets start chirping on the Ugly House – especially in a market that’s supposed to move fast – it’s more likely the sellers will begin to sweat it and accept a lower offer.
Megan Kinealy-Hill, agent at Country House Realty shares some intel: “You're less likely to end up in a crazy bidding war if the house doesn't scream INSTAGRAM ME! An uninspiring modular home can be totally turned around with some aesthetic vision, and often these homes will be really solid. If you can get away with not having to replace a roof or do any other major infrastructure work, you can focus your budget and your energy into breathing new life into the space with paint, lighting, windows, etc.”
She goes on: “Even at the height of the COVID bidding frenzy, I had clients pick up some real gems sub-$300k just by picking an ugly duckling that had all-clears in all the right places (like septics, roofs, foundations, etc.)”
Back to me. My own Ugly House journey began in 2018, when I first laid eyes on a Catskills cottage whose previous owner was a (presumably very sweet) older lady. In its Zillow listing, there were doilies on every surface, layers of curtains on every window, fine china and family photos hanging from every wall, and tons of personal clutter. The landscaping was totally overgrown and the choice of outdoor decor was… interesting. The cherry on top: it was horribly photographed, with harsh angles and terrible lighting. A gut feeling told me it had potential, though, so I went to see it.
I won’t lie: an Ugly House wasn’t really what I was looking for. I was reluctant. I had just left another huge renovation project, and I was tired. But every time something decent went on the market, it was either out of my budget range or it was gone immediately. The process was wearing on me.
Ugly as it was, there were some undeniably great things about it: the views were amazing, it was just the right size, and when it came time, it got a great inspection. Plus, the price was right: under $150k in the town I wanted desperately to live in. A glaring oversight by the sellers agent in the original listing also got me another $10k reduction. I went for it. It’s been an undertaking, and five years later it’s still a work in progress – but I love my Previously Ugly, Now Very Cute, House.
LeAnna Click, buyers agent at the Upstate Curious Team, had a similar experience – a supportive partner who’s along for the ride doesn’t hurt, either. Photos above; she shares her experience below.
“Thankfully, my partner and I on the same page when it comes to buying Ugly Houses. We bought a house in Narrowsburg, NY that looked like a mobile home/ranch, and had been used as a hunting cabin. It had d-log siding, usually reserved for exterior siding – on the interior of the house, oof! We fell in love with the property and the location, and completely gut renovated it.
“During the Covid-buying-frenzy, it was difficult for me to compete in the market, and definitely got my heart broken on a few properties. I came across this Ugly House after it was sitting on the market for a few months, did a major price drop, and still got it for $40k below the original asking price. It's now one of my most popular rental properties, and I have more guests asking to buy the house from me directly than any other property I own!
“I think with the market today, it can truly depend on how long you plan on holding a house because even the Ugly Houses are getting more and more expensive. But if you can see yourself being there for more than a couple of years, then it could totally be worth buying an Ugly House and turning it into exactly what you're looking for over time. Plus, the more work a house needs, the less expensive your long term mortgage will be, assuming you buy something way under your ‘turn-key’ budget.”
Lock It In Quicker
Expanding on the above, there’s far less demand on Ugly Houses, and therefore less competition. Sellers are lucky to get even a few bites, let alone a serious buyer. Once you make an offer, they'll be more inclined to speed through negotiations and lock in a contract.
More Budget For Renovation
When you spend less on the initial purchase, there’s extra budget to customize and renovate thoughtfully. Once you get to updating, you’ll have far more wiggle room in your budget to choose exactly the materials, finishes, upgrades and design elements you love to create a home that’s uniquely yours.
Over in the Hudson Valley, Bruna De Araujo of Claverack Builders shared her Ugly House journey: “When we bought Casa Botânica, it was painted a faded yellow and the roof had green tinted asphalt shingles. To match, someone hand painted the cinder block chimney that stuck out of the roof, green. Real fugly, dilapidated concrete steps with broken faux wrought iron railings brought you to the entrance adorned with one of those 60's scalloped awning metal hats. The gardens were overgrown and disheveled. The interior was not that bad — it was not a fixer upper, just an Ugly House.
“We got it for less than $250K (in the pre-pandemic world) and spent around the same to make it ours. In no particular order, here’s a short-list of improvements we made. On the inside, we stripped the floors, sanded and refinished them; loads of painting; ripped out the entire kitchen and installed a new one – and same with the bathroom. Outside, we painted the entire house, got a new roof and gutters, and replaced clunky concrete stairs with cute wooden portico and re-landscaped. The list could go on and on!
“Another thing to consider is that by saving on the Ugly House purchase, we were able to spend more on really nice furniture, which makes a huge difference.”
Marry the Lot, Not the House
An Ugly House situated on a great lot has so much potential! Something worthy of note is that many older homes in Upstate New York are in areas where larger lots are the norm. Or, as it happened in the case below, maybe the Ugly House just needs some bigger windows to capitalize on an existing incredible view.
Case in point: the Ugly House I bought had exactly two tiny windows that faced some of the best views from a house I’d ever seen. It was a no-brainer, easy fix.
In the near distance, my view looks over a pond and marshland that draws tons of wildlife. Between my house and the pond, a wildflower field blooms most summer, and a stand of majestic 100+ foot tall pine trees on both sides of my property frame it all. In the far distance toward the east where the sun rises, I can see some of the higher peaks of the Catskill Mountains.
Two of the first things I did when renovating my Ugly House capitalized on my view. I began by adding a giant window in my bedroom that faced this magical vista, and on the same side of the house, I added a deck, accessed by a pair of glass sliding doors that take up nearly a whole wall. When I wake up, the first thing I see is sunrise colors over the pines. The room that houses the sliding doors is my office. The deck is where I entertain guests and spend my sunset hours. Between my bedroom, office, and deck, I spend a good chunk of my days within eyeshot of an inspiring view. A little imagination has really paid off!
Location, Location, Location
…Trumps pretty much everything in real estate. If you’ve found an Ugly House in a great location (think riverside, lakeside, or great great views) – you've found yourself a great investment. Pretty up your Ugly House and it’ll be worth a lot more, and get you a quicker buyer when you decide to put it on the market.
Bruna De Araujo of Claverack Builders is currently on her second Ugly House after great success on their first, Casa Botânica. For her family, the location was perfect.
“We got our first Ugly House in Philmont, NY for less than $250K (in the pre-pandemic world) and spent around the same to make it ours.
“It's six minutes from Hawthorne Valley Farm, AKA the mall of Upstate living: it's where our son went to school, where we get our organic groceries, our sourdough, freshly baked goodies, our hard cider and our biodynamic CSA. Plus, our house sits across a reservoir with a man-made waterfall (yes, we have views of the water and hear the sounds). It’s also just five minutes from one of the most beautiful glacier-made waterfalls in the Hudson Valley, and 10 minutes from the office.”
Back to Upstate Curious agent LeAnna Click for a last case study.
“My partner and I always talk about how we don't care about what the house itself looks like. The land and location is what's key for us! We can change anything about a house, and even extend on the house if needed — but you can't change the location.
“I bought an Extremely Ugly Chalet in 2019 that had incredible views of Belleayre Mountain in Fleischmanns. I almost walked away from the house without considering an offer because the clouds were hanging low and very foggy that day, and you couldn't see anything. Right as we were leaving, the sky opened up and everything changed.
“But the house itself was hideous. It was was painted macaroni orange on the inside and outside (different shades of orange/yellow?!), lots of dark painted wood, carpet, major foundation issues, unnecessary closed off spaces, rotting wood… the list goes on. It appraised $60k below the asking price ($225k) and the sellers dropped the price $55k without me even asking.”
Just a few years later, LeAnna’s Extremely Ugly Chalet has transformed into a successful Airbnb: Crow’s Nest. Check it out to get inspired.
Fired Up? Here’s Where to Start
Visuals are huge when you’re looking for homes online (ahem, have you seen our very lovely Escape Brooklyn Real Estate section?), which is why you see so many beautiful, professional photos on listings. Sellers and their agents want to showcase the home at its best.
Ugly houses, on the other hand, don’t perform well online. And that’s where the opportunity lies.
Scope out listings for hideous houses. It’s fun! I’m talking blurry, poorly shot photos someone took on their phone that show personal clutter, boxes piled in the corners, carpet in the bathroom, and out-of-date kitchens. (BTW: get inspired or just have a laugh at Please Hate These Things & Bad Real Estate Pics.)
When you make it to the showings phase, keep an open mind and be ready to use your imagination. You’d be surprised what some fresh paint, new kitchen and lighting updates can do for a house.
Finally, when the time comes to pull the trigger and buy an Ugly House, think long term and don’t rush it. Tackle your Ugly House projects one by one, letting your new house reveal itself over time. It’ll be tempting to give it as quick of a makeover as possible, but you can avoid some rework down the road with a more restrained approach.
Happy Ugly House hunting, and Happy Halloween! 🧟♀️