Buying a fixer-upper home can be an exciting opportunity for homebuyers who want to create a personalized space without having to pay the high costs associated with building their dream home from the ground up. These homes often come with lower price tags compared to move-in-ready properties, allowing buyers to invest in upgrades that fit their taste and lifestyle. With careful planning, a fixer-upper can become a dream home tailored to your preferences.

However, that doesn’t mean that buying a fixer-upper home doesn’t come with some potential challenges. Unexpected costs, time-consuming projects, and potential structural issues can turn what seems like a bargain into a financial strain. Understanding the pros and cons associated with buying a fixer-upper can help you ensure that you’re making the right move for yourself, your family, and your financial future.

Pro: Lower Purchase Price

For most people, a home is the biggest purchase that they ever make. Depending on where you want to call home, a home can cost hundreds of thousands of dollars, especially if you’re purchasing a newer home that offers lots of amenities. Fixer-uppers are typically a little older, and since they need more work, the asking price is significantly lower. According to Realtor.com, the price of a fixer-upper is typically around 50% of the cost of a home that’s move-in ready.

A lower purchase price can also free up funds to invest directly in renovations. Instead of paying a premium for a fully upgraded home, buyers can customize improvements to match their vision. This provides flexibility to prioritize the updates that matter most, from kitchen and bathroom remodels to energy-efficient upgrades.

Con: Unexpected Costs and Hidden Issues

While fixer-uppers can be more affordable up front, they also come with some inherent financial risks. Hidden problems, which can include everything from outdated electrical systems to structural problems, have the potential to turn your “good deal” into a money pit. Plumbing problems, roof damage, and termite infestations all have the power to turn an affordable home into something that costs more than buying a new build.

Accurately estimating renovation costs can be challenging, particularly for first-time buyers without construction experience. Even minor issues can quickly escalate, requiring professional expertise and additional funding. Failing to account for unexpected expenses can turn a seemingly affordable home into a costly financial burden.

Pro: Personalization and Creative Freedom

Fixer-upper homes give buyers the chance to change the layout, features, and everything else without having to pay for all of the things that come with a new build. For instance, the average slab foundation can be between $10,000 and $20,000, depending on several factors. When you buy a fixer-upper, the foundation is already in place, and you can use that money elsewhere.

From selecting flooring and paint colors to redesigning layouts or updating fixtures, buyers can shape the home according to their style and lifestyle needs. This creative control is often unavailable in newer, move-in-ready homes, making a fixer-upper a compelling option for those with a clear vision.

Con: Time and Effort Required

If you’re considering buying a fixer-upper, you’ve undoubtedly seen some of the TV shows that focus on the concept. On those shows, a home transitions from disaster to dream home in 60 minutes or less. What you don’t see is the large crew of professionals who work around the clock to get the property updated and renovated as quickly as possible. Unless you have access to a large crew of experienced professionals, your fixer-upper is going to take some time.

DIY enthusiasts may enjoy hands-on projects, but certain tasks, like electrical or structural work, often require licensed professionals. Coordinating contractors, sourcing materials, and supervising progress adds additional responsibilities that can be stressful and time-consuming.

Pro: Potential for High Return on Investment

If you’re not planning on living in the home that you purchase forever, a fixer-upper is a great way to get a higher return on your investment. Obviously, the amount that you spend on upgrading the home will come into play, but a lower initial asking price increases your odds of turning a profit when the time comes to sell.

This makes fixer-uppers appealing not just for personal use, but also for investors or buyers looking to build long-term wealth through real estate investment. Choosing improvements that add functional and aesthetic value, like updating kitchens and bathrooms or improving energy efficiency, can yield the highest return relative to cost.

Con: Emotional and Physical Stress

When the process of fixing up a home is over, you can put your feet up and relax in a space that you turned into everything you wanted it to be. However, the process that has to take place for you to relax in your dream living room is a stressful one, both physically and emotionally. Home renovations of any size can be stressful, and tackling an entire house only amplifies that stress.

Unexpected setbacks, such as structural issues, permit delays, or cost overruns, can intensify frustration and anxiety. Even small mistakes in DIY projects or poor-quality work can compound over time, leaving homeowners feeling overwhelmed.

Is a Fixer-Upper Right for You?

Ultimately, whether a fixer-upper is right for you depends on a number of factors. You’ll want to consider how long you plan on living in the home, and how much DIY know-how you have. Other factors include the initial condition of the property and your local government’s process for obtaining permits. Buying a fixer-upper isn’t something you should go into uninformed, but it does provide a wide range of benefits.