The neighborhood market value is the driving factor to determining if a fixer-upper in Oxford, MS is worth it.
Everyone wants a deal
Many first-time Mississippi property buyers as well as seasoned investors find great benefits to searching for fixer-uppers. It allows the home buyers to purchase a property with a limited budget by targeting homes below market value.
Well-informed home buyers search for a fixer-upper in Oxford, MS after studying the principle of progression vs. regression. Let’s look at these principles.
The principle of progression as it relates to a fixer-upper in Oxford, MS
In the real estate industry, the principle of progression states that a property of lesser value can be evaluated as a more valuable property through proximity to properties with greater value. In Oxford, we often see this valuation theory in play. For example, let’s look at the greater Oxford downtown area. It is a highly desirable area for many buyers and sellers. A home buyer can select a lesser-valued home in the neighborhood among higher valued properties and see an increase in value as the neighboring remodeled homes are completed and sold (read: more expensive property). Consequently, living near the highly desirable properties has its perks. This is not easy.
The principle of regression can make a fixer-upper sound less enticing
Sometimes, the newly-remodeled property urges some property owners to match or surpass their neighbor in amenities. However, one must be careful to not over invest in the remodeling of the home. Why? You may encounter an unfavorable real estate valuation principle: regression. The principle of regression states that a property owner will be negatively affected by lower value properties when the owner’s property has a higher property value. Simply put, a very nice home surrounded by less desirable properties is beneficial to the value of the lesser homes. However, it hurts the value of the higher valued property. Living in luxury among homes of lesser value will not be advantageous to property value in the short-run. Therefore, a smart home buyer always investigates the desirability and property values within a neighborhood before ever selecting a fixer-upper. As a result, it requires patience.
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Lastly, do you need fixer-upper ideas? Appeal to millennial and avoid these mistakes! And always, remember to focus on the kitchen.