With TV shows romanticizing the transformation of tired properties into dream homes, it’s no wonder that the idea of buying a fixer-upper has captured the imagination of homebuyers.

But before you dive headfirst into demo days and design plans, it’s important to weigh the upsides and pitfalls to determine if this option is truly the right fit for you.

Pros

One of the most significant advantages of purchasing a fixer-upper is the reduced purchase price. This can vary by market and location, but a StorageCafe study from early 2024, for instance, found that among 70,000 active listings in fifty of the most populous cities, the average cost was $283,000—nearly 30 percent less than that of move-in-ready homes. Besides protecting your budget, this lower cost can provide an opportunity to move into a desirable area or neighborhood that might otherwise be out of reach. There’s also often less competition for these homes since many buyers shy away from ones that need extensive repairs.

Another benefit is the potential for equity growth. Renovating a fixer-upper can significantly increase its value, especially if you’re strategic with your improvements and stick with a well-planned budget. Whether you flip the home immediately after renovating or stay in it for years, you may see a substantial return on your investment when it comes time to sell. Especially for the latter, it’s a great way to build financial value while crafting a space you love.

On that note, a fixer-upper allows you complete creative freedom as well. Unlike with move-in-ready homes, which often come with features you may need to compromise on, you can design every aspect to match your style and needs and invest in the spaces that mean the most to you. From expanding the primary bathroom to changing the layout of the kitchen, you get to play around with the rooms and features until they feel uniquely yours.

Cons

While there are many positives to purchasing a fixer-upper, there are also drawbacks worth considering. For one, though you may save on the initial price of the home, you’ll incur greater expenses when transforming the property. Even if you budget accordingly, you’re always likely to face unpredictable costs during renovations, particularly in an older home. It can be common to uncover hidden problems, such as structural issues, outdated plumbing, or pest infestations, which can quickly inflate your total costs and lead to financial strain.

Piling on to that is the time-intensive nature of renovating a fixer-upper. This can take months or even years, depending on the scope of the project, and the process of managing contractors, securing permits, and adhering to timelines over that span can be stressful, especially if you’re juggling work and family responsibilities. Not to mention that living in or near construction can be disruptive or exhausting. In short, the reality of a renovation is rarely as seamless as it appears on TV, and the constant decision-making can lead to burnout and, worst of all, dissatisfaction in the end.

Making the decision

Ultimately, whether this path is right for you depends on your goals, budget, and lifestyle. If you have the financial resources to handle unexpected surprises, the time to commit to renovations, and the vision to see the project through, a fixer-upper can be a rewarding journey. However, if the thought of living amid dust and delays makes you cringe, a move-in-ready home may be a better choice.

To help you work through the nuances, reach out to a knowledgeable real estate agent, who can answer your questions and assist you in navigating the market, evaluating potential properties, and connecting with trusted contractors and lenders. With their guidance and careful forethought, you can find a house worth turning into a home.