zlikovec / Shutterstock.com Some people get giddy at the thought of rolling up their sleeves and improving a home for profit, but do they really know the savings of a typical fixer-upper home in their market? According to a new Zillow Digs analysis, national trends show home listings that require serious improvement might not be financially worth it for homebuyers. Compared to the market value, fixer-upper homes -- which, for this purpose, have keywords like "good bones," "TLC" and "fixer-upper" in their listing description -- list for 7.6 percent less. For the median priced fixer-upper, that's a savings of $11,000. While $11,000 is a serious chunk of change, it wouldn't cover major renovations like a kitchen over-haul or projects that cover a home's structural integrity. And, naturally, the savings are hugely dependent on a home's location. Zillow studied nearly 70,000 listings throughout the nation, comparing their estimated values based on whether the home is consid...
- The national fixer-upper discount is 7.6 percent from the median priced home, which leaves just $11,000 as a renovation budget to break even.
- The largest incentive for fixer-upper homes is in San Francisco, where the fixer-upper discount is 9.4 percent, leaving homeowners $54,000 to make renovations.
- Homebuyers in Phoenix are better off not buying a fixer-upper home, which only saves 0.4 percent, leaving $1,000 for renovations.