This 3BR Fixer-Upper Near Downtown Denver Just Sold for $421,000

You can still get an affordable single-family home near downtown Denver.

Home hunting is challenging these days for singles and small families. Prices are rising nationwide, mortgage interest rates are very low, and competition to buy a home is fierce.

But there are still some diamonds in the rough to be found. Here's an example of a recent home sale in Denver that might have been affordable for a single adult with a good income or two working adults, along with a couple of alternatives.

3BR fixer-upper in Denver

We found a three-bedroom, two-bathroom home at 63 Winona Ct in the Barnum West neighborhood of Denver that sold in early July for $421,000, according to Zillow. This home is in a great location, less than five miles from Larimer Square and downtown Denver, so it was a nice option for commuting professionals and families alike.

If a three-bedroom, two bathroom at this price in a major metro area sounds too good to be true, it's because there is more than meets the eye.

What do you get for $421,000 in Denver?

For a home in a major metro area at this price point, expect to make some tradeoffs. The first detail to note on this property is that the home isn't exactly a three-bedroom. There is an unpermitted basement space that the listing agent is calling a third bedroom. You get to finish it up.

This home was put up for sale in rough shape. Not only is it dated, but it was in downright grungy condition. The listing agent cleverly called this home a "sweat equity opportunity."

In fact, that may be true. Judging from the photos, a serious do-it-yourselfer might be able to turn this home into a showpiece. But there is much work to be done. Cabinets, walls, countertops, and doors are broken or damaged. All of the flooring was in poor condition. The yard is not landscaped. Fences are falling down. The kitchen and bathrooms need updating.

On the bright side, the home is relatively young, built in 1986. While a 35-year-old property may seem old to some buyers, it's not unusual to find single-family homes for sale that are more than 100 years old. The amount of maintenance required on a home does grow over time, which is why brand-new construction is so desirable. Generally, on a 35-year-old home, you shouldn't need to anticipate major issues like knob-and-tube wiring or cast-iron plumbing typically associated with older homes.

The home sold for 20% over asking price

This fixer-upper was listed in mid June for $350,000. It sold three weeks later for $421,000. That means it sold for slightly more than 20% above its asking price in a bidding that happened fast. The potential buyers almost certainly came in with their best offer first. We don't know if the winner was a cash investor or a family, but we do know there is usually intense competition at this price point because it's affordable for many singles, couples, and families.

Alternative homes in the same price range

A three-bedroom, one-bathroom fixer-upper in the beautiful Villa Park neighborhood sold for $425,000 in early July. This home is just under 1,000 square feet and was listed for $405,000. It sold for less than 5% above asking price.

Home buyers in the area also found alternatives to single-family homes. A two-bedroom, one-bathroom duplex built in 1905 sold in the Speer neighborhood of Denver in early July for $420,000. It's a little less than 1,100 square feet and a definite fixer-upper. It was listed at $375,000 and sold for 12% above asking price.

A gorgeous 844-square-foot turnkey condo in Lincoln Park also sold for $420,000. It's an open-air, one-bedroom, one-bathroom loft in the Santa Fe Arts District. This gem dropped in price from $439,000 in May. In addition to the price of the home, the new owner will pay $363 in homeowners association (HOA) fees every month.

How to buy a house

Whether you're looking in Denver or someplace else, start your home-buying journey prepared. Make sure your credit is ready to buy a home and save as much as possible toward:

• Down payment
• Closing costs
• Moving expenses

Consider carefully how much work you are willing and able to do on your own. Buying a fixer-upper is romantic but it can be a lot more work than you expect. But if a condo in a comparable price range won't give you the space your family needs, sign up for that laminate flooring installation class at your local home improvement store and go for it.