How to Buy a Fixer-Upper: Pros, Cons, and Finding the Best Property for You

Homeownership is becoming further out of reach for many Americans. That’s likely why page views for fixer-uppers on Realtor.com were up by 52% year-over-year, according to a 2025 report from the National Association of Realtors. Buying a fixer-upper generally costs 54% less. 

But as anyone who’s ever watched a home renovation TV show will know, it’s often more time, money, and stress than you bargained for.

We’ll help you think through whether buying a fixer-upper is the right plan.

Table of Contents

1. Is buying a fixer-upper right for you?
   1. Goals
   2. Familiarity with real estate legal issues
   3. Financing
   4. Stress
   5. Work you’re willing to do
   6. Contractors
   7. Work required
   8. Leeway
   9. Experience
2. How do you find a fixer-upper?
3. Make a plan: Get accurate time and cost estimates

Is buying a fixer-upper right for you?

Let’s be clear. Taking on a fixer-upper can be a life-changing opportunity. But to make it work, you’ll need to start with your whys, because that will be the guiding factor toward a happy outcome.

What are your goals?

Are you looking for a permanent home? If it’s an investment, are you planning to do a fix-and-flip, or hold it for rental income? Your financing options and home preferences might be very different in each scenario.

Most of my clients buy fixer-uppers to fix and flip for a profit. Also, some of my clients enjoy DIY projects, and they plan on staying in the home for a long term.
In nearly every case, the project takes longer and costs more than the initial estimates. I always advise clients to build in a buffer for these unexpected expenses. Despite the challenges, the majority of my clients are happy with the the final outcome, both financially and in their overall enjoyment of the home.

How familiar are you with real estate legal issues?

You’ll need to be especially careful to follow proper permitting rules if you’re making big changes to the house. Easements, zoning laws, HOAs, and more can also affect your investment profitability.

How secure is your financing?

You may need a special type of mortgage if you want to roll your renovation costs into buying a fixer-upper. Additionally, financing options are more limited for investment properties compared to your personal residence. 

How much stress can you tolerate?

Any home purchase is stressful, but especially buying a fixer-upper. In a 2025 survey from Today’s Homeowner (TH), nearly one in five people who bought a fixer-upper reported that it negatively affected their mental health. 

It’s important to do thorough research, work with a real estate agent experienced with selling fixer-uppers, and be prepared both financially and mentally for delays and extra costs.

How much work are you willing to do?

Sweat equity can help you save more money—maybe. In the TH survey, 7% of DIYers caused additional damage, 5% injured themselves, and 27% eventually had to call contractors in anyway.

Many aspiring fixer-upper buyers seek peer advice. One Redditor asked, “For anyone who bought a fixer upper, was it worth it?”

For anyone who bought a fixer upper, was it worth saving on costs? Would you do it again or buy a new build/renovated home?
byu/Successful_Test_931 inFirstTimeHomeBuyer

The responses were mixed but instructive. Some shared success stories of equity growth and personal satisfaction. Others admitted they underestimated hidden costs, enduring years of unplanned repairs, contractor headaches, or emotional burnout.

These firsthand accounts underscore that while a fixer-upper can pay off, going in with realistic expectations and a buffer is essential.

How familiar are you with local contractors?

Even if you plan on swinging a hammer yourself, chances are you’ll need to hire a contractor for some work, like electrical and plumbing. Contractor quality can vary significantly, and they’re often booked out far in advance.

How much work needs to be done?

It’s important to get a home inspection, which half of the TH survey respondents skipped. Nearly half of those folks later said they regretted it, often after they uncovered more serious issues with the home. 

How much leeway do you have?

The more work that needs to be done and the less experience you have, the more you should bump up your time and cost estimates. Nearly half of the TH survey respondents reported going over budget.

How much experience do you have?

Building a new addition to the home probably isn’t in the cards if you’ve never changed a light bulb before. In the TH survey, 44% of homeowners reported “intermediate” skills, such as smaller household repairs.

How do you find a fixer-upper?

Many people find the right reno project through the same online real estate listings as normal homes. You can search for terms like “fixer-upper,” “TLC,” “needs work,” etc., to zero in on these homes. But you can expand your search horizon much further if you know where to look. 

• Networking: Your personal and professional network can be a fruitful source for off-market (i.e., not listed for public sale) homes. Local real estate meet-ups are great places for aspiring investors to find opportunities and connections alike.

• Tax auction: Governments at the local, state, and federal levels may seize and sell properties from former homeowners who fail to pay their taxes. These properties can be quite cheap, but financing and the condition of the property are often dicier prospects. 

• Foreclosures: Similarly, the property condition can vary, but foreclosure sales can be a lucrative avenue for finding an affordable fixer-upper. 
• Real estate agent: Choose your real estate agent wisely. Some may have more connections and knowledge than others, particularly if they’ve helped others with buying a fixer-upper. 
• Driving for dollars: A real estate investor strategy where you drive around and keep your eyes peeled for possible fix-and-flip homes that aren’t on the market. You then locate and contact the property owners with an offer to purchase their property.

Make a plan: Get accurate time and cost estimates

Finding the property is usually the easy part. Making sure it’s the right property is much harder. The pre-purchase process can set you up for success or failure, so it pays to make sure you do things right during this stage. 

It’s best to start with a clear picture of your financial capability and creditworthiness. Your mortgage lender will certainly consider this, but it’s on you to make sure you can afford renovation costs, too. Consider hiring a financial advisor who can help.

The most common mistake is underestimating costs. So it’s crucial to build in a financial cushion, whether it’s from savings, investments, or financing.

When you find a house you’re interested in, don’t skimp on the cost of hiring a home inspector. You want as much information on the home as you can get, even if it requires hiring specialty inspectors for things like pest damage or structural soundness. Get quotes from contractors on how much it would cost to fix up. 

Finally, make sure you budget for overages, like correcting unforeseen damage, temporary relocation costs, or hiring a contractor after all for work you’d planned to do yourself. Every project has contingencies like this, and some experts recommend adding as much as 20% extra to your budget to account for it.