8 Things to Look for in a House That Will Save You Money

Not all bargain houses are ready to be condemned.

Buying a house today is fraught with peril, and perhaps the most perilous thing you will face is having to spend way more money than you had hoped just to get on the property ladder. Fortunately, even as a first-time home buyer, you can save money when shopping for a home, especially if you're willing to choose a house that's less than perfect.

The difference between a money pit and a money pot

There are basically three kinds of homes most buyers encounter:

1. The kind that you live in for a while, sell for a reasonable price, and end up with a little bit of cash to help you get into your next house.
2. The kind that you throw endless amounts of money into, only to realize the problems were a lot more than skin deep and you end up taking a financial beating.
3. The kind where you go in knowing you'll have to spend money, but that some amount of ugly won't kill you, and that you'll end up improving the home's value significantly in the end.

That last one, the money pot (as opposed to a money pit) should be the goal for anyone who is trying to buy a house in an overheated market. They're not always that common, but they're out there. And you will recoil in horror when you find one. Maybe someone's grandmother lived in her house for 50 years and literally never remodeled or changed the carpets. Maybe the house had a few rounds of bad cosmetic "remodels" that did it no favors.

So what's the trick to finding a money pot? Tom Brickman, The Frugal Gay, sums it up nicely: "I typically make the most money on the ugliest houses. People are quick to get caught up on ugly wallpaper and laminate countertops but often the biggest opportunities are in these. Clean, safe and good bones. An ugly house in a great location is a home run. One of my favorite sayings is -- don't let others' lack of vision hold you back."

Elements of a great money pot house

If you've been house shopping recently, you already know what the market is like if you're trying to stay below the median price in your area. You've got to give up something, but before you start playing the world's smallest violin for your home dreams, reconsider the great houses you may have already dismissed for having seemingly unforgivable flaws.

Here are a few things you can fix quickly and inexpensively to turn a house that's a hard no into a home that will show.

1. Exterior paint

If a house you're interested in is painted a horrible color, that's great news for you. Houses with poor or no curb appeal can be real bargains. You'll also be really surprised how easy it is to change the exterior look of a house in a couple of weekends. The National Association of Realtors (NAR) even gave painting siding a 9.8/10 joy score!

2. Landscaping

Terrible, overgrown, and weedy landscaping can be a lot of work to get into shape, but just think about all those people who passed up that messy view so they could skip the yardwork. You'll save a bundle by spending a month's worth of weekends with some hedge clippers and a few loads of new mulch.

3. Garage door

Garage doors are an increasingly huge part of the curb appeal of a home. Modern homes may have as much as 33% or more of their road frontage dominated by a garage door. When the garage door looks worn, the paint is terrible, or the design is just super dated, it sends a message about the home itself. On the other hand, a new garage door is one of the best investments you can make to improve the value of a home, with Remodeling Magazine naming it the second-best investment in your home for 2023, with 102.7% of the cost recouped if you sell.

4. Flooring

You've seen them by now: the carpet that time forgot, the yellowing linoleum, the dated tile, and the hardwoods that have definitely seen better days. These are huge turn-offs for buyers, and many don't realize that under those nasty carpets could be like-new hardwood floors or other treasures. Refinishing hardwood floors can be cheaper than installing new flooring, and the National Association of Realtors says it can return 147% of your costs if you sell your home.

5. Light fixtures

The wrong lighting will kill the look of a room faster than anything. Poorly lit spaces show terribly, feel claustrophobic, and generally don't make buyers want to hang around. Changing out light fixtures, on the other hand, is one of the easiest things a homeowner can do. A full 57% of Realtors surveyed by HomeLight recommend changing the lighting for first-time buyers who are shopping for bargain homes.

6. Wall finishes

You'll know it when you see it: the grandma special. Grandma took great care of her house, but man, is it trapped in the era of funky wallpaper and paneling. These are the houses where you can create massive glow-ups with almost no effort. A few gallons of primer and paint, and like magic, your home becomes a whole new place. HomeLight Realtors suggest painting these rooms as the No. 1 priority for buyers of less-than-perfect homes.

7. Countertops

Counters are a huge element of kitchen design. If you ever doubt it, go into a kitchen with horrible counters and see just how much it drags the room down. Replacing them is a little more complicated than painting, but it's not difficult for a homeowner to learn (and not terribly expensive to hire out). Replacing those counters is recommended by 58% of the Realtors HomeLight surveyed, and the National Association of Realtors found that a kitchen upgrade can provide a 9.8/10 joy score for homeowners, as well as returning 67% of your investment.

8. Cabinet doors and hardware

People commit crimes against their kitchen cabinets every day, and it's never clear why. But, this is another one of those questionable design choices that you can take advantage of when you're shopping for a home. Ugly cabinets with ugly hardware are practically gold mines for home buyers like you. Replacing cabinets can be really expensive, but refinishing them and replacing the hardware is a super cheap upgrade that you can do on your next staycation.

HomeLight Realtors agree, with 59% recommending painting those cabinets, and 38% suggesting changing the hardware. The National Association of Realtors found it could return up to 67% of the cost when you sell later. You can also try this trick in the bathroom and marvel at how much different the place looks almost instantly.

Choosing an ugly house saves money

Your real estate agent can help you find an ugly home to make your own and buy for a song. As long as your home inspection doesn't show any major problems, get ready to put in some sweat equity instead of hard-earned cash. Most of these homes will even qualify for programs like FHA loans, since there's no rule against ugly.

"I love ugly houses with good bones," says Brickman. "Meaning, I can paint, landscape, and swap out lighting quickly and relatively inexpensively. When I see price reductions come through I always think, 'I would have spent $1,000 on fresh paint, some landscape cleanup and a fun light fixture.' These things are inexpensive but make a big impact."

No matter what house you choose, it’s important to pick one that is solidly constructed, and with potential upgrades you can realistically tackle given your schedule and budget. Paying for homeownership is a wild ride, and not getting in too deep is an important part of it!