Do You Really Save Money When You Buy A Fixer-Upper?

You’ve seen the TV shows. A nice couple looks for a house. They want everything updated and beautiful; who wouldn’t? But it never takes long before the couple’s hopes are dashed, and they have to settle for a fixer-upper, which, on the shows, saves them a boatload of money.

Do they really save money, though?

A survey in Porch says that no, homebuyers don’t save money on buying a fixer-upper, and often, they lose money.

Even though the majority of fixer-upper homeowners thought they could save money, they actually spent about the same or more than their move-in ready counterparts. On average, respondents paid just over $250,000 for move-in ready homes. Meanwhile, fixer-uppers cost slightly under $200,000, on average. After renovations, though, fixer-upper homeowners ended up spending almost $247,000 in total when they managed to stay within budget. Fixer-upper homeowners who went over budget spent over $25,000 more than move-in ready homebuyers for a total cost of $275,741.

So, maybe that move-in ready house is worth it after all. Of course, saving money isn’t the only reason people buy fixer-uppers. Many buy because they like the neighborhood, or because they like the house, even though it needs work. Sometimes, the fact that the home needs work is part of the appeal. In fact, nearly half or respondents say that they wanted to personalize the home. How else can you turn a home into your very own unique gem?

People who bought move-in ready homes surprisingly cited some of the same reasons: they like the house or the neighborhood. They also say they bought move-in ready because they were afraid of the time commitment and the inconvenience.

Would the fixer-upper buyers do it again? Most said they would. 86% of people whose renovations stayed within budget said they’d buy the same house again. Even the majority of people (60%) who said they went over budget said they’d buy the same place again.