Want to save money and put sweat-equity into your new home? Well, hope you like sweating because the saving-money part is slightly dubious.
The average fixer-upper in Denver cost only 3.8 percent less than a market-value home, which equates to a $9,000 discount, according to an analysis from Zillow. The company says they identified these homes based on “keywords that signaled the home needs work, like ‘TLC,’ ‘good bones’ and ‘fixer-upper.'”
Nationwide, fixer-uppers sell for an average of $11,000 less, representing an 8 percent discount. Among the 36 metros studied, Phoenix had the smallest discount, with only $1,000 difference between a market-rate home and a fixer-upper.
Good luck grabbing one of these mythical beasts in Denver though. Fixer-uppers represent only 1.3 percent of all Denver listings, according to Zillow’s analysis.
Of course, that doesn’t account for the oft-heard refrain that normal buyers are prevented from buying these homes because developers offer cash for them.
Despite having fewer cheap options to pick from, developers are still flipping houses, increasing the competition for these houses.
Altogether, Zillow found that Denver was in the bottom third of all metros for every measure: price difference, percent discount and availability.
Maybe put your sweat into the search instead of the house.