Buying a home that needs extensive remodeling can fetch a handsome discount, but it depends a lot on where you're looking to buy.
In much of America the discount won't make up for significant renovation costs. The average fixer-upper in the US only nets a decrease of 7.6% from the median list price, which works out to just $11,000 in cash savings, according to analysis from real estate marketing firm Zillow.
But in some cities, homes needing work offer savings of two to three times that much. Zillow analyzed 70,000 listings of fixer-uppers across the country — identified using key words like "fixer-upper," "TLC," and "good bones" — and compared list prices to estimated market values to determine which metro areas provide the best deals.
Expensive markets, where even a modest percentage discount amounts to significant savings, tended to provide the most value on the median fixer-upper home: Cash savings averaged $54,000 in San Francisco and $38,000 in San Jose, the two highest figures on Zillow's list.
Business Insider rounded up the top 10 metro markets from the study, ranked by the average amount of money saved.
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10. Portland, Oregon
Cash savings: $19,000
Fixer-upper discount: 7.3%
9. Virginia Beach, Virginia
Cash savings:$19,000
Fixer-upper discount: 13.1%
8. Chicago, Illinois
Cash savings: $19,000
Fixer-upper discount: 13.8%
See the rest of the story at Business Insider
