The Real Cost of a Fixer-Upper: What Buyers Need to Know

Are Fixer-Uppers Worth It Right Now? Let’s Talk About It.

Lately, I’ve been seeing more and more buyers asking about fixer-uppers, and it’s not just you. Online searches for homes that need a little TLC have tripled since 2021, and they’re getting over 50% more views than move-in-ready homes.

The appeal is clear: lower prices, more creative freedom, and the chance to turn a house into your home. But as exciting as that sounds, fixer-uppers can also bring some surprises that cost you time, money, and sanity.

So, let’s break it all down, what the data says, what to watch for, and how to make a smart move if you’re thinking about buying one here in San Diego.

The State of Fixer-Uppers Right Now

Nationally, fixer-uppers list for around $200,000, which is about 54% less than the average single-family home. That’s a big discount!

But here’s what’s interesting, there are actually more fixer-uppers hitting the market (up nearly 19% since 2021), yet they make up a smaller share of total listings than before. Translation: competition for the good ones is heating up.

Most fixer-uppers were built in the late 1950s, are around 1,600 square feet, and usually have three bedrooms and two baths. They also tend to sit on the market a little longer, giving you some room to negotiate.

Why People Love Them

Lower Price: The biggest draw, plain and simple. You’re starting from a lower price point, which means a smaller down payment and a little more breathing room in your mortgage.

Customization: You get to make it yours. Want to open the kitchen, add a deck, or redo the floors? You call the shots.

Less Competition: Most buyers still prefer turnkey homes, so you might find fewer bidding wars and more flexibility when it comes to negotiating.

Equity Growth: Smart, strategic updates can add real value. Even modest improvements like fresh paint, refinished floors, or an updated bath, it can build equity quickly.

The Not-So-Glamorous Side

Hidden Costs: Renovation budgets always go higher than expected. Experts say plan for 10–20% extra for surprises, because there will be some. Consider outdated wiring, plumbing issues, or hidden water damage.

Time + Disruption: Remodeling takes time, and permits can slow things down even more. If you’re living there during construction, be ready for dust, noise, and delays.

Resale Risks: Not every renovation pays off. You don’t want to over-improve beyond what the neighborhood supports. That luxury kitchen might not bring a luxury return if nearby homes aren’t priced that way.

What to Evaluate Before You Jump In

Before you fall in love with that “potential,” make sure you’re checking:

• Location: You can fix the house—but not the neighborhood.

• Structural vs. Cosmetic: Paint and flooring? Easy. Foundation issues? Different story.

• Resale Potential: Stay within about 10–15% of your neighborhood’s median price after renovations.

• Timeline: Some projects take weeks, others take a year or more. Be realistic.

Common Pitfalls (And How to Avoid Them)

• Overestimating your DIY skills

• Underestimating time and cost 

• Skipping permits

• Forgetting to check zoning laws 

• Overpaying upfront 

Most of these can be avoided by working with a local agent who understands both renovation costs and what buyers in your area actually want.

Final Thoughts

Buying a fixer-upper in San Diego can be an amazing way to build equity and get into a neighborhood you love, but it’s not for everyone.

The key is preparation:
Get your financing and renovation budget lined up early.

Never skip inspections.
Know the difference between a cosmetic project and a money pit.
Partner with the right pros, contractors, inspectors, and an experienced agent who knows how to spot a deal.

With the right plan, that “before” photo could turn into your dream “after.”