Buying a home allows prospective buyers to build equity and enjoy the benefits of homeownership. However, the market dynamic between lower-cost fixer-uppers and move-in-ready properties has begun to shift along with homebuyers’ priorities and financial capabilities. The decision to purchase a move-in-ready house or fixer-upper goes well beyond a buyer’s technical aptitude for complex home repairs and requires a careful review of what’s at stake.
The research team at This Old House analyzed data from the National Association of Home Builders (NAHB), Zillow, and Renofi to uncover current housing market trends. Our analysis also revealed the advantages and disadvantages of fixer-uppers and move-in-ready homes and key factors that influence a homebuyer’s final decision. We also drew insights from a recent survey to better understand how homeowners approached homeownership in the context of repairs and renovations.
Homebuyers looking to save money can find value in fixer-uppers, but some moving costs simply can’t be avoided. For example, the cost of relocating should factor into your home-buying budget, especially if you have to move a second time after completing renovations. Hiring cheap moving companies can help lower moving costs, whether you choose to move in right away or take the time to craft your dream home first.
Key Takeaways
- Although fixer-uppers are selling for the biggest discount in years, 7.3% less than similar homes, buyers are willing to pay 3.7% more ($13,194) for already-remodeled homes, according to Zillow.
- The average annual cost of a home built prior to 1960 is 6.3%, nearly double that of homes built 50 years later (3.2%), according to the NAHB.
- Despite a home inspection’s inherent value in informing a buyer’s decision to purchase a fixer-upper, our 2025 study revealed that 27% of buyers opted not to get one.
- Completing a major home renovation project on a fixer-upper requires nine to 12 months on average, according to Renofi.
- For their highest-priority home renovation project, 58% of homeowners hired a contractor, while 42% opted to complete repairs themselves, according to our survey.
Current Market Trends
When reviewing homes within their target housing market, prospective buyers may come across properties listed as either “move-in-ready” or “fixer-uppers.” But what does move-in-ready mean? Compared to fixer-uppers that require time and money invested to bring them up to acceptable living conditions, move-in-ready homes are complete and free from any major structural issues that would prevent homeowners from occupying the property.
Fixer-uppers are selling for 7.3% less than homes of similar potential value—the largest discount within the last three years, according to Zillow. However, buyers are willing to pay up to 3.7% more—an additional $13,194—for a home that’s already been remodeled. Instead of leveraging a steep listing price discount as an opportunity for a potentially greater ROI in home renovations, buyers are seemingly more inclined to finance the difference over their mortgage terms.
The cost of a home’s upkeep, on top of any necessary renovations or repairs, may be the underlying cause of this trend. Buyers who opt for a newer home spend less on maintaining it. Annual operating costs—expressed as a percentage of home value—are nearly twice as high for homes built prior to 1960 (6.3%) as they are for homes built in the 2010s (3.2%), according to the NAHB.
Pros and Cons of a Fixer-Upper Home
Prospective homebuyers who purchase a fixer-upper can benefit from a lower purchase price and corresponding down payment, greater oversight of renovation quality and home customization, and less competition. “Fixer-uppers are worth it for the cost savings, especially in today’s market when home ownership is out of reach for many,” says Mike Peck, licensed contractor and VP of installation at Leaf Home. “You may save quite a bit by purchasing a property at a lower price and leaving room in your budget for home improvements.”
Renovations on any fixer-upper aren’t without their fair share of stumbling blocks. Inexperienced homebuyers who take on renovations may not realize that “the renovation process can be time-consuming, [can] result in unplanned costs, and may pose safety risks,” says Peck. Costly permits, supply chain inefficiencies, and lack of available skilled labor can put a damper on renovation plans. “You might even end up spending more than buying a turnkey house,” says Pete Evering of Utopia Management San Diego.
“Fixer-uppers are most appropriate for people with a solid understanding of construction (or the ability to team with trustworthy, skilled contractors)” and those “who enjoy the process of transforming potential into performance,” says Elliott Caldwell, co-founder and CEO of Home Team Luxury Rentals. Yet, as much sense as fixer-uppers can make on paper, they’re not for everyone. “If you have to ask yourself whether a fixer-upper is right for you, it’s most probably not,” says Evering.
Pros and Cons of a Move-In Ready Home
“Buying a move-in-ready home is best suited for those who want to move in quickly and don’t want to deal with the hassle of repairs and renovations,” says Peck. “It’s also a good option if you don’t have the time, energy, or expertise when it comes to DIYs.” Move-in-ready homes typically offer homebuyers a smoother buying experience and direct access to nearby amenities and established neighborhoods.
Yes, the “purchase price of a move-in ready home is higher, but it may save you time and concern,” says Caldwell. However, homebuyers have less say in any customization, as they “have to settle with what’s available and compromise on a few features, even with the best deals,” says Evering. Move-in-ready homes don’t experience the momentary jump-up in value between construction and completion, and the existing community around these houses can host an older infrastructure.
All said and done, “someone prioritizing a seamless transition might lean toward a move-in-ready option,” says Caldwell. Renovations can easily get in the way of other life priorities that take precedence over saving money at the outset of a home purchase. “Turnkey homes are more convenient, with fewer surprise costs and peace of mind that you’re up to date on code,” says Peck
Key Factors To Consider
Deciding between a fixer-upper and a move-in-ready property requires evaluating several factors, including the potential costs, the market conditions, the home’s resale value, and your time, budget, and lifestyle, to name a few. While finding a fixer-upper can inspire prospective buyers to dedicate themselves to renovations, much of the work happens before a single sledgehammer blow falls. “It’s a question of an honest assessment of your level of financial flexibility, renovation know-how, and lifestyle timeline, balancing short-term convenience with potential long-term value creation,” says Caldwell.
In contrast, move-in-ready properties cater to those who lack the time or inclination to hire a contractor or complete renovations themselves. Buyers may elect to finance the higher expense of a move-in-ready home rather than gamble on a (potentially) higher return on investment from home improvements. Exploring the following key considerations can help prospective buyers make a more informed decision between a fixer-upper and a move-in-ready home.
- When I bought a fixer-upper home, it was the perfect storm. The home was listed for $30,000 less than the average home in the neighborhood due to the seller needing to sell fast, and it was not updated. Overall, the bones were good, and the roof and HVAC systems were all in good condition. The only updates needed were new windows, paint, new flooring, and new light fixtures, which put me at about $25,000 of renovations—still less than the market value of homes around me. —Abby, West Tennessee Homeowner
Costs and Budget
The financial draw of a discounted fixer-upper can tempt prospective homebuyers for whom a move-in-ready property may be slightly out of reach. However, while “fixer-uppers are often cheaper upfront, they usually require significant cost in repairs,” says Peck.
Recently, the cost of renovations has risen due to higher interest rates and material costs as a result of inflation. With these increased costs, the formula for a profitable fixer-upper isn’t as easily solved, driving some prospective homebuyers to opt for a new construction home or one that’s already been remodeled. Over a quarter of homes listed for sale (28%) on Zillow carry the descriptor “renovated,” so buyers have a respectable inventory of move-in-ready homes to choose from.
Although “fixer-uppers may be harder on the wallet than initially expected,” says Peck, buyers can still pursue this avenue of homeownership and increase their chances of success with a strategic approach. Getting a home inspection is a key first step in determining if a fixer-upper is worth the investment. However, our recent survey shows that more than one in four buyers (27%) opted to forego a home inspection prior to purchase, leaving the door open to potentially costly and unforeseen home repairs in the future.
“Be present during the inspection to ask questions and gain a comprehensive understanding of the property’s condition,” says Evering. “The inspector will provide a detailed report outlining the existing issues and repair recommendations. This information will be crucial in determining the scope of work required and estimating renovation costs accurately.” Buyers can then take these issues to contractors to get quotes on any necessary work and formulate a budget. Regardless of the final cost of renovations, adding a 10%–20% cushion can help account for any unanticipated costs along the way.
Market Conditions and Resale Value
“Younger generations are increasingly attracted to fixer-uppers due to their lower upfront cost and potential for investment,” says Peck. Yet, it can be easy for prospective buyers—primarily first-time homebuyers—to view the purchase of a fixer-upper through rose-colored glasses. Building equity in the home becomes harder to achieve as the cost of renovations creeps closer to the top end of a budget that may already strain a buyer’s financial standing.
Thorough market research and insight into the home’s resale value can give buyers the context they need to approach renovations with profit in mind. Regardless of your budget for a fixer-upper, “never buy one unless you have a solid vision for how you’re going to maximize or increase its value,” says Evering. The time buyers take to review this information also helps inform their purchase decision if they decide to make an offer on a move-in-ready property.
Time and Lifestyle
Whether you complete home repairs yourself or supervise hired contractors, renovating a fixer-upper requires time, a commodity some lifestyles prohibit. Homeowners should be realistic about the true value of the time they can commit to renovations, especially if they need to live somewhere else until the work is completed. Depending on how far the renovation timeline extends, the cost of a hotel room or short-term rental can easily exceed a renovation budget by a few hundred or even a few thousand dollars.
The key to building enough time into a renovation timeline is erring on the side of caution by expecting and accounting for delays. Yet, “if executed correctly, buying a fixer-upper can end up [being] a great investment,” says Evering. Below are estimates of the time required for the most common home renovations, according to Renofi:
- Addition: 12–20 weeks
- Finished basement: 4–8 weeks
- Kitchen: 6–12 weeks
- New flooring: 1–3 weeks
- Primary bathroom: 3–10 weeks
While these smaller projects can be completed in a matter of weeks, a major home renovation can take anywhere from nine to 12 months, especially if the project involves an entire level or more than two or three rooms. If this timeline seems excessive, prospective buyers may be better off purchasing a move-in-ready property to decrease any potential delays. Move-in-ready homes are best for prospective buyers who need something fast and whose lifestyle doesn’t support dedicating significant resources to home renovations.
DIY vs. Contractors
Homeowners who opt to complete home renovations on their own can further their cost and time savings. “If you are not doing the work yourself, it takes more time to find a professional with the skills you need,” says Michael Frisch, associate professor at the University of Missouri-Kansas City. However, not all homeowners have the inclination or skills to complete home renovation projects, so “for larger projects, hiring a professional is safer and more effective,” says Peck.
Homeowners who aren’t afraid of putting in sweat equity tend to gravitate toward fixer-uppers because they can customize as they renovate. However, if you plan on hiring a contractor to complete home renovations, it’s best to find a home closest to what you’re looking for—whether that’s a fixer-upper or move-in-ready property. Even if you plan on changing a few things down the road, a move-in-ready property enables you to live in the home immediately and schedule upgrades whenever your time and resources align.
Our survey also revealed that the majority of homeowners (58%) hired a contractor for their highest-priority home renovation project, compared to those who did the work themselves (42%). Contractors are often a trusted resource for jobs involving HVAC systems, roofing, solar panel installation, and foundation repairs. Respondents report they’re more willing to take on projects like installing new wallpaper, painting, landscaping, lighting, and tiling themselves.
Making the Right Choice
The ultimate decision between a move-in-ready home and a fixer-upper centers on what it is you’re looking for in homeownership, primarily your relationship with your home. “When working with buyers, I often ask, ‘What comes to mind when I say Home Depot?’ If they cringe, we’re leaning toward newer builds. If their eyes light up, it’s time to explore older homes,” says Paul Johansen, licensed associate real estate broker at The Corcoran Group.
You might also ask yourself the following:
- How willing are you to complete repairs yourself?
- Do you prefer the definitive purchase price of a move-in-ready home or the potentially lower, yet unknown, investment of owning a fixer-upper?
- Does it make more financial sense to purchase materials and do the work yourself or hire a contractor who can buy supplies in bulk?
- Are you more interested in custom finishes or the potential to upgrade should you choose to do so in the future?
If you’re ready to take on a home renovation, start with these quick tips for tackling a fixer-upper house, or check out our guide to the best places to buy a fixer-upper.
For those who opt to purchase a move-in-ready home, a robust final walk-through checklist can help give you peace of mind before closing. Either way, a moving cost calculator can help you budget for moving expenses before you start the next chapter in your life.
