Fixer-upper
A home that needs repairs or updates, usually priced below fully renovated comparables. Ranges from cosmetic work to full gut jobs.
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Where this comes up: getting ready
Part 1 of 4
Why a seller cares
A fixer-upper is priced from what it will be worth fixed, minus the cost and trouble of fixing it. Sellers who know that arithmetic know why the offers look the way they do.
Part 2 of 4
A simple example
Renovated comps sell for $300,000. Your home needs about $50,000 of work. Investors offer around $200,000; a family looking for a project offers $230,000.
| The buyer | How they price it |
|---|---|
| A flipper | $300,000 minus $50,000 of work, minus their profit and holding costs |
| A family doing the work over time | Closer to $300,000 minus the work, because they are not paid to do it |
| A buyer who wanted move-in ready | They do not offer at all |
A fixer-upper's price is a renovated home's price with the renovation and the risk taken out.
Part 3 of 4
What people get wrong
That a fixer-upper discount equals the cost of the repairs. It is larger, because the buyer is also paying for the hassle.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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