Plug and play has had its day. As affordability pressures reshape the housing market, a growing number of younger buyers especially are increasingly willing to take on older properties, drawn by lower purchase prices, renovation potential and the ability to personalize a space over time, rather than paying a premium for move-in ready builds.
“Millennials are not just buying fixer-uppers because they like the aesthetic,” says Ankit Sehgal of Swiftdrain, which specializes in drainage products. “They are doing it because older homes offer a lower entry point and the opportunity to build value over time. What we are seeing is a generation that is willing to put in the work, but they need clear guidance on where to start so their investment pays off rather than becoming a financial drain.”
Sehgal details the specifics that draw buyers to properties that need work.
- Significantly lower entry prices. Fixer-uppers are priced an average of 54.2% below the median U.S. single-family home, making them one of the few remaining paths to homeownership for price-sensitive buyers.
- More house for the budget, even if it needs work. These properties are typically older and smaller, but the tradeoff is affordability and flexibility, allowing buyers to improve the home over time rather than stretching financially upfront.
- High buyer interest despite longer timelines. While fixer-uppers tend to sit on the market slightly longer than comparable older homes, that gap has narrowed significantly since 2021, signaling growing comfort with renovation projects.
- Outsized online demand. Fixer-uppers receive 52% more page views per listing than similar affordable homes, indicating that buyers are actively seeking renovation-ready properties rather than avoiding them.
- Regional hotspots with real value. Availability is strongest in the Midwest and Northeast, while the deepest discounts are concentrated in the Midwest and South. Markets such as St. Louis; Detroit; Toledo; Dayton; Jackson, Mississippi; and Waco, Texas, stand out for offering both supply and savings.
While all of the above are plusses for buyers, there can still be a wariness, especially with first-time buyers who would have very little knowledge of how to go about actually getting the fixing up done.
“The largest obstacle for buyers when considering fixer-uppers is a fear of the unknown,” says Jacob Wood, a real estate broker at New York City’s Coldwell Banker Warburg. “Even if buyers have the budget and timeline, their fear of overages scuttles the deal. Buyers also fear their own judgment. Even if a project comes in on time and budget, a buyer may select their own design on paper, then just not like it when the product is finished.
“When marketing a fixer-upper or advising a buyer considering one, the most effective approach is to obtain cost and timeline estimates from a full-service design-and-build general contractor. An itemized list of material and labor expenses, along with a timeline breakdown of each phase of the project, will be much more useful than a single, overall cost and timeline estimate, even if that estimate is exactly correct.”
On the seller side of a fixer-upper property, Wood encourages clients that repairing and repainting of walls, or refinishing floors instead of replacing them, typically yields a four-to-one or five-to-one return on investment. The same goes for deep cleaning, washing or repairing windows, he notes.
“The net return on staging costs is similar,” he says. “Buyers are much more likely to bid on a professionally staged home, even if it requires a complete renovation. Sellers risk wasting money by undertaking a complete renovation before listing. Renovating to sell often results in chintzy, generic work that buyers don’t love. Painting, refinishing and staging help open up the market for a fixer-upper, but kitchens and baths should be left to buyers.”
While fixer-uppers, if handled right, can save buyers a lot of money, some agents, like Pam Rosser Thistle, with Berkshire Hathaway HomeServices Fox & Roach, REALTORS® in Philadelphia, understands that some clients prefer not to go that route.
“Buyers who are not investors may overlook an outdated kitchen or bathroom, but few will get involved in a home that needs major work,” she says. “This is best left to investors and contractors. Many will fantasize about a project; few will take it on once they tally the costs. Most first-time buyers prefer a property with little to do, that is move-in ready. An exception would be for a premium location or a place that had a feature like parking.”
Revamping an older home
“The biggest mistake homeowners make is prioritizing cosmetic upgrades before addressing what is behind the walls,” says Sehgal. “Electrical systems, plumbing, foundations and drainage determine whether a renovation succeeds or fails. If those elements are not assessed early, homeowners risk costly repairs that undo months of progress and budget planning.” He recommends these steps for proceeding with fixer-upper projects.
- Foundation and structural integrity first. Before cosmetic updates begin, homeowners should assess the foundation, load-bearing elements and drainage. Cracks, uneven floors or persistent moisture issues can compromise every other renovation if left unaddressed.
- Plumbing systems and water management. Older homes often have aging pipes, outdated layouts or poor drainage. Upgrading plumbing early prevents leaks, water damage and costly rework once walls and finishes are in place.
- Electrical safety and capacity. Many older properties were not designed to support modern power demands. Rewiring, panel upgrades and grounding improvements ensure safety, code compliance and long-term functionality.
- Moisture control and ventilation. Proper drainage, venting and airflow protect the home from mold, rot and indoor air quality issues, particularly in basements, kitchens and bathrooms.
- Cosmetic and lifestyle upgrades last. Once the core systems are secure, homeowners can confidently invest in finishes, layouts and design choices that personalize the space without risking future tear-outs.
“As a listing agent, I price a fixer-upper at the bottom of the Comparative Market Analysis range and try to find other sold properties in the area that are like fixer-uppers,” says Brian Teyssier, of REMAX Real Estate Solutions in Pittsburgh. “Market conditions sway my advice. For example, I’ll recommend sellers get the house pre-inspected first and address anything broken, defective or a safety hazard because these are things that will kill a deal. Ugly carpet and wallpaper don’t kill deals. Sellers can address cosmetic items, but I’ve found that rarely will they. The smart move is to just price it for the updates needed.”
Ava Anz, Wood’s co-worker at Coldwell Banker Warburg, points out that properties needing renovations allow clients to not only enter at a lower price point, but also opens the door to neighborhoods and buildings that may be out of reach with their budget.
“I help clients manage renovation costs and stay within their budgets by working with the vendors and contractors I partner with,” she says. “Buyers find that this makes financial sense while allowing them to customize their home to fit their lifestyle and add their own personal touch. Providing cost guidance and connections, positioning the property price-wise with renovation concepts and targeting value-add buyers lead to a successful sale.”
