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IRVINE, CA-The best cities for buying fixer-upper bargain homes in this country are not in the West, but are mostly located in the Midwest, according to a report from to RealtyTrac, a locally based online provider of real estate and foreclosure data. Detroit leads the pack with 3,773 bank-owned properties built before 1960 and valued under $100,000.
“Low-priced homes are still plentiful in many markets, particularly in the form of foreclosures,” said Daren Blomquist, VP of RealtyTrac, in a prepared statement. “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."
Homebuyers and real estate investors willing to consider fixer-upper homes may find that they're competing against fewer buyers and are able to buy at a lower price point, allowing them to build some quick equity with rehab, RealtyTrac reports. According to the firm's analysis, nationwide there are more than 51,000 potential foreclosure fixer-uppers.
According to the report, the top 15 best cities for buying fixer-upper bargains are:
- Detroit, MI
- Chicago, IL
- Cleveland, OH
- St. Louis, MO
- Cincinnati, OH
- Philadelphia, PA
- Milwaukee, WI
- Phoenix, AZ
- Toledo, OH
- Birmingham, AL
- Dayton, OH
- Columbus, OH
- Jacksonville, FL
- Indianapolis, IN
- Lansing, MI
As GlobeSt.com reported in May, “A slow economy and tight financing mean that most consumers are willing to put aside their preferences to get a much lower price on an existing home—particularly distressed homes in foreclosure that we show on average sell for 30% below the average price of a non-distressed home,” said Blomquist. “Demand is still very strong for these distressed homes, where multiple offers and bidding wars are not uncommon. These bidding wars are starting to push the price of distressed homes and all existing homes higher, and over the next year the gap between the price of an existing home and new home should continue to shrink—which will likely push more homeowners to consider buying a new home rather than an existing home.”
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
