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Fixer-uppers not always the deal homebuyers are hoping for

On Behalf of | Sep 12, 2016 | Real Estate Transactions

There are many ways a person may try to save money when buying a home. One is to buy a fixer-upper. However, buying a fixer-upper home might not always be a good deal. A recent Zillow Digs analysis underscores this.

The analysis looked at how much of a discount fixer-upper homes are generally listed at. It found that, nationally, such homes only list an average of 8 percent below market value. For many fixer-uppers, this low of a discount could make the discount less than the costs of the renovations needed to get the home into the condition the homebuyer wants.

Now, the average discount for fixer-upper homes does vary quite a bit from area to area. So, the location of a fixer-upper home, along with other factors (such as the types of renovations the home would need and the average costs of such remodeling), can impact whether buying that home would be the cost-saver a homebuyer is hoping for.

This underscores how important it is for individuals who are considering buying a fixer-upper to carefully research the discount on the property and other factors which would impact whether the purchase would ultimately achieve their cost-saving goals.

Another way a homebuyer might try to save money is by taking shortcuts in the homebuying process. However, cutting corners when it comes to real estate transactions can have real risks when not done with proper care. It could create problems that could end up costing a homebuyer more money in the long run. So, when buying a home, a homebuyer may want a skilled attorney’s guidance on what steps regarding the transaction would actually best serve their goals, including their goals for saving money.

Source: Money, “Why Buying a Fixer-Upper Might Not Be Worth It,” Kerry Close, Sept. 7, 2016