How To Decide Whether a Fixer-Upper Is Actually a Good Deal: Ask a Wahi REALTOR®

Fixer-uppers can provide great value, but they can also become home-improvement nightmares. Here’s what you need to know before buying one. 

By Josh Sherman | 2 minute read

A fully renovated move-in-ready home is the dream for most Canadians. Some 64% say they prefer a renovated home, according to Wahi’s 2024 Great Canadian Dream Home Survey. Unfortunately, what Canadians want doesn’t necessarily line up with what they can afford. Whether due to budget constraints, penny pinching, or even a strong do-it-yourself attitude, a sizable number of Canadians (23%) are eyeing so-called fixer-uppers. These are properties that require a little (or a lot) of TLC but are normally priced lower as a result. “Fixer-uppers are an attractive option for house hunters on a budget, especially if they have DIY skills around the house,” says Wahi Broker of Record Anne Alkok. “However, not all fixer-uppers are created equal, and there are also many pros and cons to go over.” 

According to Alkok, there are several potential advantages to purchasing a fixer-upper:

1. The price: Fixer-uppers tend to be priced lower than similar homes in the area that are in a better state of repair. However, pricing varies for each depending on the home’s condition and the seller’s strategy: anywhere from less than 10% for homes that may need minor cosmetic repairs to upwards of 30% for properties that need major renos. 
2. The location: Because of their lower prices, fixer-uppers can help homebuyers afford property in neighbourhoods they may otherwise have been priced out of.  
3. The freedom: Fixer-uppers are often marketed as properties with opportunity — the opportunity to transform the space to your specific needs and tastes. It’s a marketing tactic from sellers that often holds some truth.
4. The profit: If the cost of your renovations is less than the difference between what you paid for the fixer-upper and its present value, then you’re in the green. This profit is on top of whatever appreciation may have otherwise taken place. Buying a fixer-upper can offer a great ROI if done right.

Buying a fixer-upper also comes with potential disadvantages. “First-time homebuyers should exercise caution when considering the purchase of a fixer-upper,” says Alkok.

There are several potential drawbacks to be mindful of, she says:

1. Time and money: “Renovations can be costly and time-consuming,” says Alkok. “To be on the safe side, you should always budget for more than you think the repairs will end up costing you.” She’s not wrong: in 2019, some 39% of Canadian renovations go over budget, according to a CIBC poll — and that number likely hasn’t come down since. Following the pandemic, material and labour costs have soared. In fact, a separate CIBC survey found that the average reno cost in Canada nearly doubled between 2019 and 2024 to $19,000. 

   Then there’s the timing to think about. A construction company estimates that renovations can take anywhere from three weeks to more than nine months, depending on the scope and scale of the work. Here is Violet Build’s timeline estimates for the most common types of projects: 

   • Bathroom: three to 6 weeks
   • Kitchen: six to 12 weeks
   • Basement finishing: eight to 12 weeks
   • Legal basement apartment: three to five months
   • Home addition: four to eight months
   • Full home renovation: four to nine months (or more)
   • Custom home build: 12 to 18 months

   
   Can you live without your kitchen for months? Do you work from home and will construction noise interfere? Do you run a side business out of your home that will suffer as a result of ongoing renovations? These are important considerations when you decide whether a fixer-upper is actually a good deal. 

   
   

   1. Loss of investment: An over-budget renovation can erase any profits you may have realized, though Alkok notes that if you intend to own the home over an extended period of time, this may be less of an issue.
   2. Stress: Renos can be nerve-racking. One survey from Billdr Canada, a contractor, found that 77% of Montreal residents say the renovation experience is stressful. A serious reno isn’t for the faint of heart. 
   3. Disappointment: Renderings and blueprints depict what a renovation should look like when complete. But nothing compares to seeing the finished project IRL. It is always possible that the renovation you undertake won’t live up to your expectations — yet another issue you won’t have if you buy a turnkey home rather than a fixer-upper. 

How To Decide Whether a Fixer-Upper Is Actually a Good Deal

Now that you’re familiar with the pros and cons of fixer-uppers, you can apply this knowledge when viewing properties along your homebuying journey. Unless you’re a general contractor or a seasoned home-flipper, though, you’ll likely need to bring in some help.

To decide whether a fixer-upper is actually a good deal, invite a contractor along to home showings that you attend. They’ll be able to provide you with an estimate of how much renovations may cost. A home inspection is another way to determine the extent of work required. “I always recommend buyers consider a home inspection before signing anything,” says Alkok. 

Ultimately, homebuyers need to weigh the downsides with the advantages to decide whether a fixer-upper is actually a good deal. “Even if a fixer-upper makes sense on paper, it might not fit your lifestyle,” adds Alkok.