Flip or Flop: The State of Fixer-Uppers in Raleigh
House flipping in Raleigh has experienced a notable decline, reflecting a broader national trend. According to a study by ATTOM, house-flipping activity in Raleigh has decreased significantly over the past year. Nationally, house-flipping activity dropped by 29.3% in 2023, marking the largest annual decrease since the financial crisis of 2008. This reduction can be attributed to limited housing options and increasing affordability issues in the Raleigh market.
However, the downturn in flipping activity does not eliminate the potential benefits of purchasing a fixer-upper. Though the numbers have started to decline, rates are still up 111% from a decade ago and up 40% from 2018. In fact, buying a fixer-upper is a great way for wishful Raleigh homeowners to squeak out a deal. Despite the challenges, experienced REALTORS® (like those on the HREG team) can navigate the market to find properties that offer value and the possibility of appreciation through strategic renovations. Keep reading to learn more about how we can help you find the fixer-upper of your HGTV dreams.
“The typical fixer-upper costs $134,748 less than a turnkey home in the area.”
StorageCafe
Limited Availability but a High Reward
As we said, fixer-uppers are not as common as they used to be, but we can help you find them! Buying a home that needs a little work can be a great way to maximize your budget and get a home that fits your needs and style. There are many options for renovation buyers and we have lender partners who specialize in these types of loans. Whether the house is large or small, needs a lot of work, or just an update, a fixer-upper may be a great option to get you into that dream home in your dream neighborhood without breaking the bank.
Fixer-uppers are also a great opportunity for investors to pick up an inexpensive property and either flip it or do some updates and carry it as a rental. Here at HREG we work with many investors to find properties that will maximize their ROI (return on investment) and CAP rate (capitalization rate or the rate of return on a real estate investment property based on the income the property is expected to generate.)
Not sure where to start or if this is a good option for you? We can guide you through, start to finish, with finding the right home, loan, and vendors to turn that ugly duckling into a swan. Please email us at Renee@HREGSells.com or give us a call at 919-877-6708 to start your fixer-upper journey!