Fixer-upper homes might be the solution for potential buyers who are having trouble with snagging a good deal in this low-inventory environment, according to RealtyTrac.
RealtyTrac’s definition of fixer-uppers required three traits: the property must be bank-owned, have an estimated market value below $100,000, and be built before 1960. According to RealtyTrac’s estimate, there are more than 51,000 of these discounted properties.
“Low-priced homes are still plentiful in many markets, particularly in the form of foreclosures,” said Daren Blomquist, VP at RealtyTrac.
“While these homes may be in need of more work than a typical home and are certainly harder to find now than in previous years, buyers and investors willing to put in a little extra legwork and sweat equity can often find the best deals in their markets on these foreclosure fixer-uppers,” he added.
To help buyers narrow down their search, RealtyTrac ranked the top 15 cities for fixer-uppers. Detroit, Michigan reigned as the best city to buy a fixer-upper. In the Motor City, RealtyTrac found there are 3,773 banked-owned properties built before 1960 that cost under $100,000. The average market value for these properties is $41,503.
Another Michigan city landed on the list, with Lansing ranked as No. 15 with 513 fixer-uppers.
Ohio received the greatest representation, with five of its cities on the list: Cleveland (No. 3), Cincinnati (No. 5), Toledo (No. 9), Dayton (No. 11), and Columbus (No. 12).
Chicago ranked second, where there are 1,649 fixer-uppers.
Other top cities included Saint Louis (1,021), Philadelphia (865), Milwaukee (846), Phoenix (763), Birmingham (694), Jacksonville (600), and Indianapolis (526).
RealtyTrac also provided tips on finding, financing, and fixing up these types of properties on its website. The online foreclosure marketplace is also hosting a webinar to discuss the topic on June 26.
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