Is a Fixer-Upper Worth It? Here are the Risks and Rewards

Fixer-Uppers Are Having a Moment

If you’ve noticed more homes “with potential” popping up lately, you’re not imagining it.
Searches for fixer-uppers have tripled since 2021, and these homes are now getting over 50% more online views than similar listings.

It’s easy to see why: lower prices, the freedom to customize, and the satisfaction of turning a diamond in the rough into your dream home.
But there are also risks that can turn that dream into a money pit if you’re not careful.

If you’re thinking about buying a fixer-upper in the Greater Milwaukee Area, here’s what you should know before you start picking out paint colors.

The State of Fixer-Uppers

Nationally, the median price for a fixer-upper is around $200,000—a 54% discount compared to the $436,250 median for move-in-ready homes.
Even though more are hitting the market, they now make up only 5.2% of total listings, down from 6.1% in 2021.

The average fixer-upper was built in the late 1950s, offers around 1,600 square feet, and has three bedrooms and two bathrooms. They also tend to stay on the market a little longer—53 days compared to 50 for other homes.

Why Buyers Love Them

Lower Price Tags
Fixer-uppers typically come with a smaller price tag, which means lower down payments and monthly payments.

Creative Control
You can design your home exactly how you want it, from finishes to layout to overall style.

Less Competition
While most buyers prefer move-in-ready homes, fixer-upper buyers often have more room to negotiate.

Equity Potential
Smart renovations can increase your home’s value and help you build equity faster.

What to Watch Out For

Hidden Costs
Renovations nearly always cost more than expected. Experts recommend adding 10–20% to your total budget for surprises.

Time and Disruption
Permits, inspections, and construction delays are common. Be prepared for the possibility of living in a work zone.

Over-Improving
It’s easy to overspend. Upgrades that go far beyond the neighborhood standard may not pay off when you sell.

Before You Buy, Think About

  • Location: Does the neighborhood support your long-term plans and renovation goals?

  • Structural vs. Cosmetic Issues: Cosmetic updates are manageable, but structural problems can drain your budget.

  • Timeline: Can you handle living through months of renovation?

  • Resale Potential: Keep your updates within 10–15% of the area’s median home value.

Common Pitfalls

  • Overestimating your DIY skills

  • Underestimating time and costs

  • Skipping permits

  • Forgetting zoning rules

  • Overpaying for “potential”

Working with an agent who knows the fixer-upper market in the Greater Milwaukee Area can help you avoid these mistakes, find hidden gems, and guide you toward smart investments.

The Bottom Line

Buying a fixer-upper can be an incredible opportunity, but success comes down to preparation and patience.
In the Greater Milwaukee Area, fixer-uppers can either be a stepping stone to your dream home or a costly detour—and the difference lies in planning wisely and having the right guidance along the way.

jennifer Sloan