In 2025, the market for fixer-uppers and investment homes for sale is evolving, reflecting changing buyer preferences and economic factors. While fully remodeled homes are gaining popularity, fixer-uppers and investment properties still hold appeal for certain buyers, especially those looking for customization opportunities or affordable entry points into homeownership.
The Current Trend in Fixer-Uppers and Investment Homes for Sale
Recent data from Zillow shows that homes described as “remodeled” are attracting significantly more interest than fixer-uppers, with remodeled listings receiving 26% more daily saves. This shift is partly due to rising renovation costs and buyers’ preference for move-in-ready properties. However, fixer-uppers and investment homes for sale continue to offer unique advantages, particularly for buyers willing to invest time and effort into renovations.
Advantages of Buying Fixer-Uppers and Investment Homes for Sale
- Lower Purchase Price: Fixer-uppers are typically priced 10-12% lower than comparable renovated homes, making them more affordable upfront. This price difference can allow buyers to purchase larger or better-located properties for less.
- Customization Potential: Unlike move-in-ready homes, fixer-uppers offer vast opportunities to personalize the property. Buyers can tailor renovations to their tastes, from layout changes to finishes, creating a truly customized home.
- Investment Opportunity: For investors, fixer-uppers and investment homes for sale present a chance to add value through renovations and potentially realize significant returns. Markets like St. Paul, MN, and Mississippi have active listings of fixer-uppers that attract investors seeking to capitalize on these opportunities.
Considerations When Buying Fixer-Uppers and Investment Homes for Sale
While fixer-uppers can be appealing, buyers should be cautious. Renovation costs have increased due to inflation and supply chain issues, which can erode the initial savings from a lower purchase price. It’s essential to carefully assess the condition of the property, estimate renovation expenses, and plan budgets realistically to avoid unexpected financial strain.
Where to Find Fixer-Uppers and Investment Homes for Sale
Many regions have active markets for fixer-uppers and investment homes for sale. For example, Zillow lists hundreds of fixer-upper homes in states like New York and California, with prices ranging widely depending on location and property size. Local real estate agents specializing in investment properties can provide valuable insights and help buyers find suitable fixer-uppers tailored to their goals8.
Is Buying a Fixer-Upper Still Worth It in 2025?
Despite the trend favoring renovated homes, fixer-uppers and investment homes for sale remain viable options for buyers with renovation experience or those seeking affordable entry points. They offer a pathway to homeownership or investment with potential for customization and value appreciation. However, buyers must weigh the risks and costs carefully and work with professionals to ensure a successful purchase and renovation process.
In summary, fixer-uppers and investment homes for sale continue to attract a niche of buyers and investors in 2025, offering affordability and customization but requiring careful financial planning and market knowledge.