Could a Fixer-Upper Be Your Best Investment in Atlanta's Housing Market?

 

In today's competitive Atlanta real estate market, finding the perfect home within your budget can feel challenging. But as Justin Landis, CEO and Realtor of the Justin Landis Group, recently shared, one of the biggest opportunities in the current market might be hiding in plain sight: properties that need a little TLC.

The Current State of Atlanta's Housing Market

Atlanta's real estate market in 2025 continues to show resilience. While sales decreased by 10.7% compared to last year according to the Atlanta REALTORS® Association's February Market Brief, home prices have remained strong. Current data shows the median home price in Atlanta is around $418,000, with properties selling relatively close to their listing price.

According to Redfin data from February 2025, Atlanta home prices were down 10.6% compared to last year, with properties selling for a median price of $380K. The average home now spends about 84 days on the market compared to 55 days last year. While this might initially sound concerning, it actually represents an opportunity for savvy buyers.

The Fixer-Upper Advantage

As Justin Landis points out in the transcript: "The market is pretty balanced right now. Some of the houses are selling quickly in over asking price, but a lot of those are in perfect condition. A lot of the houses that are not in perfect condition... I think that's one of the biggest opportunities. If you're willing to do some work–"

The numbers support this strategy. According to recent StorageCafe research, fixer-uppers in Atlanta have an average cost of $249,450, representing a substantial saving of $300,550 over the cost of buying a regular turnkey home. This 55% discount puts Atlanta in seventh place across the nation's 50 largest cities in terms of fixer-upper savings.

Additionally, fixer-uppers in Atlanta typically offer more space, with an average lot size of just over 10,000 square feet. This is considerably more than the average across the 50 largest cities (7,200 sq. ft.) and is exceeded by only five other large cities in the nation.

Why Consider a Fixer-Upper in 2025?

  1. Significant Cost Savings: The average discount on a fixer-upper in Atlanta is 55% compared to turnkey properties, one of the highest savings rates in the country.

  2. Less Competition: While perfect homes often receive multiple offers and sell over asking price, fixer-uppers typically have fewer interested buyers, giving you more negotiating power.

  3. Customization Opportunities: As Justin mentions, renovating allows you to "make it what you want." Rather than settling for someone else's design choices, you can create a space that perfectly suits your taste and lifestyle.

  4. Build Instant Equity: As noted by Chrissie Kallio of Atlanta Fine Homes Sotheby's International Realty, homes that need updating are attractive to renovators or buyers "looking to put in the work themselves for instant equity."

  5. Long-Term Investment Potential: Atlanta has experienced steady and sustainable home price appreciation over the years, offering potential for long-term investment gains.

Financing Your Fixer-Upper

One common concern about buying a property that needs work is how to finance both the purchase and the renovations. Fortunately, there are several options available:

The FHA 203(k) loan is a popular choice that allows the combination of the purchase price with the estimated cost of renovations into one loan, simplifying the financing process. This makes it ideal for buyers interested in purchasing fixer-uppers.

Another option is the Fannie Mae HomeStyle Renovation loan, a conventional mortgage that allows you to purchase a fixer-upper and pay for renovations with a single loan and mortgage payment. It requires a 3% down payment and a minimum 620 credit score.

There are several renovation loan options available: Conventional Renovation loans, FHA 203(k) loans, and VA Renovation loans for eligible veterans. These allow qualified borrowers to purchase a home while factoring in the costs of repairs and remodeling.

Real-Life Success Stories

Justin Landis mentioned in the transcript that he has "built multiple houses personally" and loves "having the finished product that we want to have." He's not alone in finding success with this approach. Many homeowners, including Kristin from The Bert Show on Q997, have found that buying a fixer-upper allowed them to get into desirable neighborhoods they might not otherwise have been able to afford.

Looking Forward: Atlanta Market Predictions

Looking ahead, experts predict home prices in Atlanta will continue to rise in 2025, albeit at a more moderate pace of around 3.2% annually. This represents a cooling from the double-digit increases seen in recent years but still indicates a healthy market.

From a market and investment angle, 2025 could be an excellent year to buy a home in the Atlanta area. The Atlanta-Sandy Springs-Roswell metropolitan area remains one of the most affordable major housing markets in the United States, with a business-friendly environment, strong economy, and consistent job market.

Is a Fixer-Upper Right for You?

While the financial benefits are clear, purchasing a home that needs work isn't for everyone. Consider these factors before making your decision:

  1. Time and Patience: Renovations take time, especially if you're doing some of the work yourself.

  2. Budget for the Unexpected: Always plan for contingencies, as renovation projects often uncover additional issues once work begins.

  3. Skill Level: Be honest about your DIY abilities. Some projects are better left to professionals.

  4. Living Arrangements: Depending on the extent of renovations, you may not be able to live in the home immediately.

How the Justin Landis Group Can Help

As Justin mentioned "We can guide you through that, guide you through getting the contractor." Working with experienced real estate professionals who understand both the buying process and renovation considerations is crucial when pursuing a fixer-upper strategy.

The Justin Landis Group has extensive experience helping clients find potential fixer-uppers with good bones in desirable locations. Their team can help you:

  • Identify properties with the best value-add potential

  • Connect with trusted contractors and renovation specialists

  • Navigate renovation loan options

  • Estimate renovation costs accurately

  • Understand which improvements will add the most value

Ready to Find Your Atlanta Fixer-Upper?

If you're interested in exploring the fixer-upper opportunity in today's balanced Atlanta market, now is the time to act. With the right property, financing, and renovation plan, you could secure significant savings while creating your perfect home.

Connect with the Justin Landis Group today or click on the banner at the top of the website to find out your home's value in seconds. Our experienced team is ready to help you navigate the exciting journey of finding and transforming your Atlanta fixer-upper into your dream home.

Data sources include:

All statistics cited are from 2024-2025 market reports unless otherwise noted.

Tune in for weekly valuable insights and practical tips with Justin and Kristin on Atlanta’s Q99.7. This insightful discussion was brought to you by a paid partnership with Kristin from The Bert Show on Atlanta’s Q99.7.

Need to find an agent?

Fill out the contact form below to get connected with us today, or head to our Meet The Team page to learn about our agents and find the right fit for your needs.

 
Social JLG