Buying a property often sold “as is” is a great way to break into homeownership. You will be investing much less and have a chance to build “sweat equity” early in your life. If you are lucky enough to find a “needs lots of work” home in a nice neighborhood, you will be making a great long-term investment. From experience, we know that this option is much better for those who are not afraid to get their hands dirty and have some experience or willingness to learn a few basic remodeling skills. If you rely on all being done by professionals, the chances are you’ll invest more than the house is actually worth.
Below is a practical, research-backed look at pros and cons, what to inspect before you bid, and realistic cost ranges for the big-ticket systems first-time buyers most often face: windows, HVAC, plumbing, and electrical.
The Upside of Buying a Fixer Upper as Your First Home
- Lower purchase price + forced equity. You’re paying for the house’s current condition, then capturing value as you improve it.
- Less competition. Many buyers can’t see past cosmetic issues; that’s your opportunity.
- Customize over time. Prioritize safety/efficiency first, then upgrade finishes as budget allows.
- Financing exists for this. FHA 203(k) loans roll purchase + rehab into one mortgage. This means one application, one closing, and one monthly payment for both the home and the improvements.
The Tradeoffs and What to Be Realistic About
- Uncertain scopes. Once walls open, hidden defects can add thousands of dollars. Build a 10–20% contingency into your planned remodeling budget for unexpected expenses.
- Carrying costs during work. Interest, insurance (older homes may cost more to insure), storage, and possible temp housing.
- Permit/inspection timelines. Safety-critical work (electric, gas, structural) requires permits and licensed trades.
- Energy bills can be higher until you address the envelope and mechanicals. This includes air sealing/insulation, newer water heater, properly sized HVAC and new appliances.
Due-Diligence Checklist (before you write the offer)
- Foundation. Some fixer-uppers require lots of cosmetic work, and there are some that have significant structural problems. While many things like roof replacement or a falling-down porch over the door can be fixed fairly easily, the foundation is one of the issues that’s best not to get involved with. If there are a few small cracks that don’t show a leak, that’s not a major problem, but anytime you see water in the basement and settling walls, it’s best to stay away or at a minimum, consult with a foundation expert before making a purchase.
- Electrical panel size and wiring age. Inspect the type of wiring and panel. Even if you are very experienced and can rewire the entire house, remember that an electrical panel upgrade will require a certified electrician and it is expensive. Build this into your budget.
- HVAC age and type; duct condition. This is a big-ticket item. If the house currently has radiant heat and no AC, and your plan is to live comfortably, read below for an estimated cost of installation. This is another item that is not considered a homeowner’s special. You will need an expert to help with new ductwork and a furnace and AC unit installation.
- Windows & exterior envelope. Look for rot, failed seals, lead paint in pre-1978 homes, and overall air leakage. Plan for the replacement cost if necessary.
- Environmental risks. Lead-based paint (pre-1978), asbestos in some older materials, and radon in many regions are something to plan for before a purchase. In many states, as a homeowner, you will be able to remove and properly dispose of these materials, but you should know how to safely deal with them.
- Sewer issues. Leave this one to the experts, especially when the sewer lines are compromised under your front yard.
Real-World Cost Ranges for Major Systems
Costs vary by region, house size/complexity, materials, and local labor rates. Use these as ballparks to plan and then get local quotes.
Windows (replacement)
Typical range (per window): ~$300–$2,500 each installed, depending on size, style, and frame; national averages cluster around $500–$1,100 per window. Whole-house (20 to 25 windows) can easily reach mid-five figures.
Tips: Prioritize failed/rotted units first; consider phased replacement. Air sealing, storm windows, or sash kits can be lower-cost bridges until you can plan for full replacement.
You can purchase great-quality windows from premium brands at big box stores. Replacing windows is not absolutely the most complicated task and if you are fairly comfortable, you can learn how to do it with the help of professional YouTube videos. Sealing around the unit will be crucial and making sure they open and close comfortably for cleaning are the main points to look for.
HVAC (furnace + AC or heat pump)
Full system replacement (typical home): ~$5,000–$12,500; some brands/sizes in larger homes run higher (low- to mid-$10Ks). Average national quotes often land around $7,500–$13,000 for combined systems.
Tips: Duct condition matters. If ducts are leaky/undersized, budget for remediation. This one is best left to professionals, especially to assure you have full warranty on both units.
Plumbing (repipe)
Whole-house repipe: ~$1,500–$15,000, with many projects around $7,500; PEX is usually cheaper than copper and faster to install. Larger or complex homes can exceed that range.
Tip: This is another one you can learn on your own. Pex is very easy to work with, and if your walls are wide open, you can tackle this project on your own. Sewer lines, especially in the basement (in concrete) are more complex, but there are plenty of online resources for those looking to learn.
Electrical (panel upgrade & rewiring)
- Panel upgrade (to 200 amps): roughly $1,300–$4,500 total installed; simple swaps can be under that, complex service upgrades higher.
- Whole-house rewiring: commonly ~$7,000–$13,000 for average homes; older, larger, or plaster-walled houses can run above that.
Why it varies: Access (open framing vs. finished walls), AFCI/GFCI requirements, service relocation, and permit/inspection fees.
Things you can easily handle yourself
- Drywall: It is messy, and working on drywall will feel miserable. Hang it correctly and your finishing will be much easier. You can save a lot of money and work on your own schedule if you are willing to tackle this by yourself.
- Tile: There are many options to lay backsplash tile for beginners. Start there, and once you master the kitchen, you can move to waterproofing and bathroom tile. Both are very doable by the homeowner. Take your time and watch lots of videos.
- Paint: This one is an absolute must. If you purchased a fixer-upper you are the one painting, no questions asked.
- Deck: Another project that can be tackled on your own, especially if the framing is still good and you are looking at just redecking. Opt for a long-lasting material – it is worth the investment.
- Flooring: Laminate, refinishing hardwoods – all can be easily done without professional help. If you are planning to install carpet, it might be more economical to purchase and have it installed.
- Kitchen cabinetry can be installed easily as long as you follow the plans closely. Don’t miss the spacers at the wall, or your cabinets will not fully open.
How to Prioritize on a First-Home Budget
- Life-safety & code compliance first
Address active leaks, unsafe wiring, combustion appliance safety, gas leaks, failing panels, and broken heaters before cosmetics. - Stop energy and moisture losses
Air seal and insulate the attic/basement rim joists; fix obvious window/door weatherstripping; then right-size HVAC. - Phase high-ticket items
- Do the panel now if undersized; rewire room-by-room with future projects.
- Repipe via accessible runs first; tackle slab sections with remodels.
- Windows: replace the worst and add storms/air-sealing elsewhere until a full swap fits the budget.
Pro Moves for First-Timers
- Make your offer contingent on inspection and, if needed, a contractor walk-through unless you are buying a property “as is”.
- Get line-item bids (materials, labor, permits, inspection fees).
- Sequence contracts so invasive work (electric/plumbing/HVAC) happens before finishes.
- Keep receipts & product docs for future buyers and insurance.
- Invite utility savings early. Air sealing, smart thermostats, and basic maintenance can shave bills right away.
A fixer-upper can be the most affordable path to a home you love, but without a doubt, it makes economic sense only if you tackle some of the projects yourself. If you are handy, you can learn many trades as you go, and don’t be afraid to take some risks and push yourself. You will be surprised how much you can accomplish on your own. Today, you can find video tutorials for every brand or type of project. Take advantage of the technology and learn as much as you can. If you know a project exceeds your comfort or expertise, call in a professional.