Houses that need work are usually cheaper than the typical move-in ready home. There are some of these types of properties here in the SF Bay Area. However, in some cities, strong demand for fixer-uppers drive prices beyond the market medium price. For example, in the map here, a Honolulu fixer-upper, sells for 69.51% more than the medium price for homes, the most in any city. But for people looking for a fixer-upper at a good price, the best deals are in St. Louis where fixer-uppers sell for 64.7% less than the medium home price (this map comes from FrontDoor).
Also, according to a REMAX survey, 73% of homebuyer respondents indicated they consider purchasing a fixer upper because of the potential for a lower list price. A fixer-upper can be cheaper to buy than a move-in ready home but a qualified real estate agent can guide you in how to budget for the cost of renovations. This Includes return on your investment (ROI), what location is best suited for re-sale, bedroom/bathroom count, future Additional Dwelling Unit (ADU) possibilities and many other factors. Contact me to find out how to search in our neighborhoods.
