A fixer-upper can be a sustainable and affordable option if you choose carefully.
Prospective homebuyers take a variety of paths in search of affordability. Some choose to look at newly built homes, knowing that they are built to higher standards for energy efficiency and sustainability. Others go in the opposite direction, looking for homes that need work and that can be improved with sustainable renovations.
Properties marketed as fixer-uppers received 52% more page views than comparable older and affordable homes, according to recent realtor.com analysis . Searches for the keyword “fixer-upper” in July 2025 were more than triple the volume of searches for that phrase four years earlier.
Why are fixer-uppers suddenly more attractive? The main reason is the price tag: the median list price of a fixer-upper was $200,000, a 54% discount compared to the median list price of $436,250 for all single-family homes, according to Realtor.com.
The markets with the most fixer-uppers tend to be in the Midwest and the Northeast, particularly in places with less new construction. According to Realtor.com, the top markets with the highest share of fixer-uppers and the biggest savings on the median price of a fixer-upper include St. Louis, Detroit, Jackson, Miss., Toledo and Dayton.
If you’re tempted to buy a fixer-upper, it’s important to do your research and know as much as you can about the location, the projects you’ll need to do to make it livable for the long term and the contractors you’ll need to hire.
“When purchasing a home with deferred maintenance in a great location, the key is to buy right and renovate smart,” says Donna Deaton, managing vice president of REMAX Victory + Affiliates in Liberty Township, Ohio. “A good rule of thumb is to keep your total investment, including repairs, within about 70% to 75% of the home’s after repair value. Focus on updates that make the biggest impact such as kitchens and bathrooms, especially primary baths, and add curb appeal without over improving beyond the neighborhood.”
How to Choose a Fixer-Upper
Inherently, all fixer uppers have problems you need to address, points out Angie Hicks, co-founder ofAngi, the home services platform formerly known as Angie’s List.
“You should go into your home search knowing which problems you’re comfortable with–and which ones to avoid,” Hicks says. “In most cases, structural/foundation issues are the biggest red flag to stay away from. These repairs can be time-consuming and extremely expensive, making them not worth it for many people.”
Hicks also warns that safety hazards–things like asbestos, old wiring and lead-based paint - can make the fixing process more difficult and expensive.
“Cosmetic updates are one thing, but structural or mechanical issues can quickly turn a bargain into a costly nightmare,” Deaton says.
Deaton shares this list of red flags for buyers looking at homes that need work:
Foundation cracks or uneven floors, which may indicate structural issues. Basement walls that have previous injections with no warranty. Bowed in basement walls. Basement or attic rafters that have been sistered or joined together for stability.
Driveways and/or sidewalks that are sinking in spots are a good indication that there could be a broken underground sewer pipe.
Water stains, mold or musty odors that could point to leaks or drainage problems.
Outdated electrical panels or visible old wiring, which can pose safety hazards.
Aging HVAC, roofs or windows that may need immediate replacement.
Evidence of DIY or unpermitted work that wasn’t done to code. Buyers can easily check for permits by address.
Pest damage or rotting wood that might suggest deeper hidden problems.
Peeling paint or wood stain, which could indicate a major lead issue.
“In Chicago, we have a lot of old charm but with that charm often comes hidden challenges during renovations,” says Michael Kang, an agent with Coldwell Banker Goldcoast in Chicago and founder of Spacematch real estate team in Chicago. “The biggest red flags I look for are foundation cracks, roof leaks and signs of water intrusion, especially in basements. I also pay close attention to outdated electrical or plumbing systems because those can turn into major expenses once you start opening walls. Insulation is another hidden issue: many older homes have little to none, which makes them drafty and inefficient no matter how nice the finishes look.”
Repairs to Avoid
If affordability is the main reason you’re considering a fixer-upper, you’ll need to carefully avoid repairs that are too costly and find a way tobudget for renovations.
“If possible, avoid homes that need major repairs, like a new HVAC unit or plumbing system,” Hicks says. “I recommend sticking to homes that only need cosmetic repairs if cost is a big concern.”
However, if you find a home that needs significant work, you may also be able to take a staggered approach. For example, while from a sustainability perspective it might make sense to replace all the leaky windows in an older house, that can be an expensive investment. It may be possible to replace them a few at a time instead.
“Avoid anything structural, replacing the roof, electrical work, particularly updating knob and tube wiring, or mold remediation,” Deaton warns. “And, if the home has a well and/or septic system, be aware that those are very costly to replace if needed.”
Sustainability Investments
Renovating with sustainability in mind can add value to your home, lower your energy bills and increase its resilience when extreme temperatures hit or other climate impacts. Not every renovation requires a huge investment of cash, either.
“Start with what you can’t see: air sealing, attic insulation and quality windows make the biggest difference in lowering energy bills and keeping the home comfortable year-round,” Kang says. “Then layer in upgrades like high-efficiency HVAC systems, heat pumps, tankless water heaters and smart thermostats. If you’re planning to get an EV, think ahead and run conduit for charging or solar hookups, even if you’re not ready to install them yet. It’s always cheaper and easier to plan for sustainability during renovation than to retrofit later.”
Hicks recommends swapping out all the appliances for modern, eco-friendly versions, which will make a huge difference when compared to older models.
If you finance your home with an FHA or VA loan, those programs require a certain amount of insulation in the attic, Deaton says. You may be able to request that the sellers add insulation or give you a credit for that improvement depending on your market conditions.
Fixer-Upper Tips
The most essential piece of advice Deaton offers is to never skip the home inspection when buying a fixer upper. Not only will you have a better sense of the projects required to update the house, you’ll also be able to ask the inspector about the anticipated lifespan of systems and appliances so you can prepare for long term investments. If the inspection finds significant flaws, you can negotiate with the sellers to reduce the price or make some repairs before you purchase the house. Be sure to attend the inspection so you can ask questions.
“My biggest piece of advice is to expect the unexpected,” Hicks says. “When renovating any home – but especially a fixer upper – you need to be prepared for unexpected costs and emergencies that pop up along the way. For example, updating your flooring or painting your walls may reveal hidden water damage that will require time and money to repair.”
Hicks also suggests bringing a trusted contractor to view the house before you make any decisions. A contractor can give you a better understanding of the scope of the renovations and how much they will cost.
“Everyone wants to renovate because they want that updated, modern look but it’s important to stay realistic with your budget,” Kang says. “Renovations almost always cost more than expected: permits, delays and material costs add up fast. I always tell clients to pad their budget by at least 15% to 20% for surprises. Work with a contractor who understands energy-efficient building practices, so your money goes toward improvements that lower long-term costs, not just cosmetics. Having a realistic plan upfront helps avoid burnout and budget shock halfway through construction.”
Is a Fixer-Upper Really an Affordable Solution?
A fixer-upper can be a sustainable and affordable option if you choose carefully.
Prospective homebuyers take a variety of paths in search of affordability. Some choose to look at newly built homes, knowing that they are built to higher standards for energy efficiency and sustainability. Others go in the opposite direction, looking for homes that need work and that can be improved with sustainable renovations.
Properties marketed as fixer-uppers received 52% more page views than comparable older and affordable homes, according to recent realtor.com analysis . Searches for the keyword “fixer-upper” in July 2025 were more than triple the volume of searches for that phrase four years earlier.
Why are fixer-uppers suddenly more attractive? The main reason is the price tag: the median list price of a fixer-upper was $200,000, a 54% discount compared to the median list price of $436,250 for all single-family homes, according to Realtor.com.
The markets with the most fixer-uppers tend to be in the Midwest and the Northeast, particularly in places with less new construction. According to Realtor.com, the top markets with the highest share of fixer-uppers and the biggest savings on the median price of a fixer-upper include St. Louis, Detroit, Jackson, Miss., Toledo and Dayton.
If you’re tempted to buy a fixer-upper, it’s important to do your research and know as much as you can about the location, the projects you’ll need to do to make it livable for the long term and the contractors you’ll need to hire.
“When purchasing a home with deferred maintenance in a great location, the key is to buy right and renovate smart,” says Donna Deaton, managing vice president of REMAX Victory + Affiliates in Liberty Township, Ohio. “A good rule of thumb is to keep your total investment, including repairs, within about 70% to 75% of the home’s after repair value. Focus on updates that make the biggest impact such as kitchens and bathrooms, especially primary baths, and add curb appeal without over improving beyond the neighborhood.”
How to Choose a Fixer-Upper
Inherently, all fixer uppers have problems you need to address, points out Angie Hicks, co-founder of Angi, the home services platform formerly known as Angie’s List.
“You should go into your home search knowing which problems you’re comfortable with–and which ones to avoid,” Hicks says. “In most cases, structural/foundation issues are the biggest red flag to stay away from. These repairs can be time-consuming and extremely expensive, making them not worth it for many people.”
Hicks also warns that safety hazards–things like asbestos, old wiring and lead-based paint - can make the fixing process more difficult and expensive.
“Cosmetic updates are one thing, but structural or mechanical issues can quickly turn a bargain into a costly nightmare,” Deaton says.
Deaton shares this list of red flags for buyers looking at homes that need work:
“In Chicago, we have a lot of old charm but with that charm often comes hidden challenges during renovations,” says Michael Kang, an agent with Coldwell Banker Goldcoast in Chicago and founder of Spacematch real estate team in Chicago. “The biggest red flags I look for are foundation cracks, roof leaks and signs of water intrusion, especially in basements. I also pay close attention to outdated electrical or plumbing systems because those can turn into major expenses once you start opening walls. Insulation is another hidden issue: many older homes have little to none, which makes them drafty and inefficient no matter how nice the finishes look.”
Repairs to Avoid
If affordability is the main reason you’re considering a fixer-upper, you’ll need to carefully avoid repairs that are too costly and find a way to budget for renovations.
“If possible, avoid homes that need major repairs, like a new HVAC unit or plumbing system,” Hicks says. “I recommend sticking to homes that only need cosmetic repairs if cost is a big concern.”
However, if you find a home that needs significant work, you may also be able to take a staggered approach. For example, while from a sustainability perspective it might make sense to replace all the leaky windows in an older house, that can be an expensive investment. It may be possible to replace them a few at a time instead.
“Avoid anything structural, replacing the roof, electrical work, particularly updating knob and tube wiring, or mold remediation,” Deaton warns. “And, if the home has a well and/or septic system, be aware that those are very costly to replace if needed.”
Sustainability Investments
Renovating with sustainability in mind can add value to your home, lower your energy bills and increase its resilience when extreme temperatures hit or other climate impacts. Not every renovation requires a huge investment of cash, either.
“Start with what you can’t see: air sealing, attic insulation and quality windows make the biggest difference in lowering energy bills and keeping the home comfortable year-round,” Kang says. “Then layer in upgrades like high-efficiency HVAC systems, heat pumps, tankless water heaters and smart thermostats. If you’re planning to get an EV, think ahead and run conduit for charging or solar hookups, even if you’re not ready to install them yet. It’s always cheaper and easier to plan for sustainability during renovation than to retrofit later.”
Hicks recommends swapping out all the appliances for modern, eco-friendly versions, which will make a huge difference when compared to older models.
If you finance your home with an FHA or VA loan, those programs require a certain amount of insulation in the attic, Deaton says. You may be able to request that the sellers add insulation or give you a credit for that improvement depending on your market conditions.
Fixer-Upper Tips
The most essential piece of advice Deaton offers is to never skip the home inspection when buying a fixer upper. Not only will you have a better sense of the projects required to update the house, you’ll also be able to ask the inspector about the anticipated lifespan of systems and appliances so you can prepare for long term investments. If the inspection finds significant flaws, you can negotiate with the sellers to reduce the price or make some repairs before you purchase the house. Be sure to attend the inspection so you can ask questions.
“My biggest piece of advice is to expect the unexpected,” Hicks says. “When renovating any home – but especially a fixer upper – you need to be prepared for unexpected costs and emergencies that pop up along the way. For example, updating your flooring or painting your walls may reveal hidden water damage that will require time and money to repair.”
Hicks also suggests bringing a trusted contractor to view the house before you make any decisions. A contractor can give you a better understanding of the scope of the renovations and how much they will cost.
“Everyone wants to renovate because they want that updated, modern look but it’s important to stay realistic with your budget,” Kang says. “Renovations almost always cost more than expected: permits, delays and material costs add up fast. I always tell clients to pad their budget by at least 15% to 20% for surprises. Work with a contractor who understands energy-efficient building practices, so your money goes toward improvements that lower long-term costs, not just cosmetics. Having a realistic plan upfront helps avoid burnout and budget shock halfway through construction.”
By Michele Lerner, Associate Editor
Michele Lerner is an award-winning freelance writer, editor, and author who writes about real estate, personal finance, and business.Also Read