The U.S. housing market is expected to remain stable for the rest of 2025, with interest rates likely to settle around 4.5 percent and mortgage rates expected to ease to around 6.7 percent by year’s end. Things might not be perfect, but a stable market is hardly bad news.
While some people may not feel that purchasing a property at this moment is the right move, those who are committed have options, one of the most attractive being purchasing an older home to capitalize on evergreen benefits like location without spending big on a new build.
Fixer-uppers, also known as Class C properties, are often classified as 30-plus years old, not as desirable, have a higher risk to take on and maintain, but also have the potential to yield very positive returns when the project is successful. While the market for flipped Class C assets has declined recently, Attom reveals they still made up 8.3 percent of all home sales in Q1 2025.
For the right buyer, fixer-uppers can be a wise investment, but they also present unique challenges. To minimize complications down the line, agents must ensure interested buyers understand the limitations and risks associated with old assets before proceeding with sales.
Where to purchase old residential assets in 2025
Before identifying and working around some of the more practical limitations of fixer-uppers, it makes sense to discuss external factors that buyers are likely to quiz their agents about.
When discussing the potential benefits of purchasing older assets with buyers, agents should, of course, consider location, as well as the buyer’s long-term plans for the property.
There is always an element of risk tied to fixer-uppers, as some issues can be tough to spot even through thorough due diligence. That said, challenges can often be offset if the home is well-priced, situated in a desirable location, and the buyer is happy to consider renovations.
As expected, sale price has arguably the biggest impact on the desirability of fixer-uppers, according to research published by Rocket Mortgage. Naturally, location and sale price are tightly linked, with the five cheapest states to buy a house in 2025 being:
- West Virginia
- Arkansas
- Mississippi
- Alabama
- Louisiana
Often, areas with a lower average sale price have more available Class C stock. For example, Realtor.com reports that almost 10 percent of all single-family listings in West Virginia are classed as fixer-uppers, the largest volume in any state as of July 2025.
For agents with clients who are on the fence about entering the market, suggesting adding fixer-uppers to their search can help get the ball rolling in terms of considering prospects.
The structural limitations of old residential assets
While exploring opportunities in low-cost areas can help to mitigate some risks, fixer-upper investments can be prone to problems like foundational issues related to aging structures.
Before presenting opportunities to buyers interested in exploring fixer-uppers, agents should ensure their clients understand how to spot common structural issues, evaluate associated risks and are prepared to navigate the work needed to bring homes up to modern standards.
Take the time to discuss the issues below with clients interested in exploring fixer-uppers.
Foundation
Fixer-uppers can be prone to foundation issues linked to unavoidable factors like aging building materials, weathering and foundation settlement.
When inspecting fixer-uppers, tell clients to look for telltale signs of deterioration like:
- Cracks wider than ¼ inch.
- Uneven floors.
- Sticking doors and windows.
- Visible leaks and water damage.
Failing to identify and address foundation issues can be expensive, with the average cost of foundation repairs, according to Forbes in 2024, totaling $5,400, rising to over $ 50,000-plus for extensive work.
For agents, try to help buyers look beyond an attractive listing price and consider the true cost of necessary repairs. If any of the above issues have been identified, make sure clients understand not only the financial risk but also the time and mental strains tied to renovations.
Plumbing and drainage
Old homes are more likely to contain outdated hardware like lead and polybutylene pipes that can be prone to failure, as well as drainage issues associated with ground movement.
Plumbing and drainage issues are not always easy to spot during viewings, but good agents will be sure to mention the importance of investigating potential issues such as:
- Inconsistent water pressure.
- Water stains and signs of mold.
- Discolored water.
- Standing water outdoors.
Fixing these issues can quickly become costly, as they often cause wider structural damage. For example, addressing a flooded basement alone can cost upward of $50,000, so agents must make sure buyers are prepared to face such risks.
Roofing
Roof issues and damage can not only grow into more severe structural problems, but also negatively impact energy efficiency, particularly in older homes with less effective insulation.
Make sure buyers understand the importance of identifying signs of issues like:
- Missing tiles and shingles.
- Sagging rooflines.
- Missing or broken flashing.
- Leaks and interior water damage.
Fixer-uppers are particularly prone to roof issues due to the natural deterioration of older materials; the cost of a roof replacement for an average-sized home can total $80,000.
Advise buyers to work with a licensed roofer trained to inspect structures and understand the severity of potential damage, as visual wear doesn’t always mean significant damage.
If serious issues are found, encourage clients to ask the seller to perform repairs, and adjust the sale price accordingly and make sure they understand the importance of inspection contingencies.
Windows and doors
Fixer-uppers that are 30-plus years old are likely to contain outdated windows and doors, which not only impact livability but also exacerbate broader structural issues.
Fortunately, these types of issues are relatively easy to identify. Agents should tell buyers to look for:
- Single pane windows.
- Warped, wrinkled or rotted frames.
- Drafts throughout the home.
- Condensation and foggy panes.
Windows and door issues may seem inconsequential, but they’re often indicators of larger issues like shifting foundations. Using the data from the 2024 Forbes consumer reports, bringing windows up to standard alone can cost $15,000 or more; therefore, it’s essential to inform buyers of such issues and expected consequences.
Is buying an older residential asset worth it?
While some experts predict home sales will rebound in the near future, many prospective buyers may still feel anxious about entering the market. Currently, conditions do appear to be frozen, but some signs suggest higher rates aren’t stopping buyers from bargain hunting.
Choosing to invest in older residential assets may help buyers capitalize on the current market, but doing so can also expose them to unique risks. When working with buyers interested in older assets, agents must ensure their clients are aware of common issues, associated costs and the likely impact renovations will have on the value of fixer-uppers.
Andrew Reichek is the President of Bodebuilders.com. Connect with him on LinkedIn.