Save here, splurge there: An investor’s guide to doing both right

Scoring a real estate deal is a thrill…but in certain places, it’s smarter to pay top dollar. A new Realtor.com study reveals where investors are scoring bargains and where they’re shelling out premiums.

Investors landed the biggest steals in Michigan, paying an average of $118,000—53.1% below the state’s median price. They also snagged hefty discounts in:

• Maryland (45.4%, $231,000)
• Virginia (45%, $230,000)
• Delaware (41.4%, $238,000)
• Wisconsin (40.7%, $175,000)

On the splurgy side, investors paid the most over typical prices (35.1%) in Montana, coughing up an average of $574,000. That’s followed by:

• Utah (33.7%, $667,000)
• California (23.3%, $909,000)
• New York (12.3%, $554,000)
• Vermont (3.2%, $382,000)

Why the big divide? “We’re seeing a clear split in investor strategy,” explains Realtor.com senior economic research analyst Hannah Jones. “Some investors are doubling down on affordability, while others are willing to pay a premium for markets with persistent housing shortages and strong rental demand.”

This two-pronged tactic pays off even more when targeting specific cities. Here’s where investors scored the biggest discounts:

• Detroit (58%, $106,000)
• Pittsburgh (52.7%, $115,000)
• Baltimore (52%, $186,000)
• Cleveland (51.4%, $113,000)
• Milwaukee (50.1%, $164,000)

Meanwhile, investors overpaid by the most in these cities:

• Los Angeles (19.8%, $1,198,000)
• San Diego (9.2%, $990,000)
• New York City (8.7%, $741,000)
• San Francisco (6.8%, $1,296,000)
• Nashville (3.4%, $477,000)

Shawn Zar at Sell My House Fast learned firsthand that going both high and low can be a winning strategy. “I recently bought a home in Shreveport, LA, 18% under market. We fixed it up, and it’s already rented. But we also paid 10% over for a place near the port in Savannah, GA. Demand there never drops. The best deal isn’t always the cheapest.”

Learn more about just how high and low investors go.