Buying a Fixer-Upper? Learn about home renovation and remodel costs

If you’ve been shopping for a home in 2025, you’ve probably noticed something: a lot of the inventory on the market isn’t brand new. Across Texas and beyond, many existing homes are dated, neglected, or in need of a full facelift. For budget-conscious buyers, these homes can look like a bargain.

But here’s the problem—too many people buy what they think is a steal, only to find out they’re the ones getting robbed.

That “cheap” house with shag carpet and wood paneling might hide outdated plumbing, foundation cracks, or an electrical system that’s a lawsuit waiting to happen. And the cost of fixing those issues? It can easily blow past whatever you thought you saved on the purchase price.

So, how do you spot a deal worth pursuing versus a money pit that eats your budget alive? It starts with understanding renovation costs and financing strategies.

Why So Many Homes Need Work

The truth is, America’s housing stock is aging. The median age of a U.S. home is over 40 years, and in Texas cities like Houston and Dallas, thousands of houses were built in the 1970s and 1980s. Many of them haven’t seen meaningful updates since. This is especially true in well‑established neighborhoods that remain highly desirable for families. The best school districts and most sought‑after areas often come with older homes that haven’t been renovated in years—or even decades—so buyers drawn to location and lifestyle need to be ready for the cost of updates.

Buyers today are also running into homes sold by investors who did a quick cosmetic “lipstick” remodel—fresh paint, shiny fixtures, maybe some new vinyl flooring—while skipping the expensive but essential upgrades like roofs, plumbing, or HVAC. Even when they do tackle a renovation, it’s often uneven: maybe the kitchen looks sleek and modern, but the bathrooms are still stuck in 1985, or the style choices are quirky enough that you’ll want to redo them anyway. And while new construction avoids these issues, those neighborhoods tend to be farther out or in up‑and‑coming areas rather than established ones—take Celina as a good example. You trade shiny finishes for a longer commute.

Whether you’re eyeing a complete gut renovation or just some strategic upgrades, you need to know what you’re walking into before signing a contract.

House Renovation Costs by Project

According to the 2024 U.S. Houzz & Home Study, 39% of homeowners went over their renovation project budget – and nearly a quarter didn’t set a budget at all. Setting a realistic budget is crucial for a successful renovation. Breaking down renovation costs by project helps you see where money typically goes and plan accordingly. The 2025 NerdWallet renovation cost report and industry data from Angi, Fixr, and HomeAdvisor provide the following ranges:

Gut renovation

A gut renovation involves stripping a home’s interior to its basic structural elements. It’s the most extensive project short of a teardown. Average costs range from $100,000 – $200,000, or $60 – $150 per square foot, and typically include new plumbing, electrical, appliances, roofing, and HVAC. In practice, though, some gut renovations can climb as high as $500,000 depending on the size and finishes. Timing is also a factor—most full gut projects won’t be move‑in ready for 10 to 12 months at minimum, and larger homes can take even longer.

Interior demolition

Before new construction comes demolition. Removing walls, fixtures, and finishes usually costs $1,000 – $5,000, or about $2 – $10 per square foot. That figure generally includes debris removal, dumping fees, permits, and labor.

Bedroom renovation

The average bedroom remodel costs around $20,000, with typical ranges between $4,000 and $40,000. Pricing depends on square footage, materials, and whether you’re adding custom closets, windows, or built‑in storage. A reasonable baseline is $100 per square foot.

Bathroom renovation

The national average for a bathroom remodel is about $12,000, with costs between $6,600 and $17,500. That’s $70 – $250 per square foot. Popular upgrades include new cabinetry, shelving, showers, and tubs. Material choices make a big difference here—ceramic tile might keep your remodel closer to the lower end of the range, while marble finishes can double or triple costs. Another huge cost driver is plumbing: if you’re able to use existing piping, expenses stay manageable, but relocating plumbing lines for a new layout can add thousands to the final bill.

Kitchen renovation

The kitchen is usually the priciest room to remodel. Average costs land around $27,000, but range from $14,600 to $41,500. High‑end remodels with luxury countertops, custom cabinetry, and designer appliances can easily exceed $65,000. Everyone dreams of outfitting a kitchen with Bertazzoni, Wolf, Viking, or Sub‑Zero, but there are also plenty of high‑quality mid‑range brands like KitchenAid that deliver strong performance at a lower price point. Countertops and backsplashes are usually the biggest cost drivers if you’re going high‑end, with natural stone or quartz easily doubling the budget compared to laminate or tile.

Flooring

Flooring deserves its own category because it spans a huge range in both style and price. Wood flooring alone can range from about $6 to $25 per square foot including materials and installation. Basic options like domestic oak or maple fall in the $6–$10 range, mid‑range options land between $11–$18, and high‑end choices with exotic woods or custom patterns can climb to $19–$45 per square foot. Factors like wood type, plank width, installation complexity, and subfloor preparation significantly impact the final bill. Hardwood and natural stone sit at the premium end, while engineered hardwood and ceramic tile offer a mid‑range option. Luxury vinyl planks can deliver durability and a stylish look for $4–$7 per square foot. The choice isn’t just about budget—flooring impacts the overall feel of your home and how easy it is to maintain. Whether you’re upgrading a single room or replacing floors throughout, it’s a line item that can easily add tens of thousands to your renovation budget.

Garage renovation

A garage remodel costs $7,000 – $30,000, averaging around $18,000. If you’re converting a garage into livable space, permits and electrical work will be major cost drivers.

Home exterior renovation

Exterior updates boost curb appeal and protect your investment. Common projects include:

• Roof replacement: The average cost for a roof replacement nationally can vary widely, with estimates typically ranging from $7,500 to $30,000 or more depending on the size of the home, the type of material used, and labor costs. Asphalt shingles are the most popular and cost‑effective option, while metal, tile, and slate roofs are more expensive but offer greater durability and longevity. To get an accurate estimate for your home, you should have a professional roofer conduct an inspection and provide a detailed quote.

• Siding replacement: Average $11,518, typical range $5,572 – $17,603. You’ll spend less repairing house siding versus replacing it.

• Deck replacement: Average $7,900, typical range $4,100 – $11,700. Like other exterior renovation projects, you can save some money by focusing on repairs rather than replacement.

• Entryway addition: Average $18,000, typical range $14,000 – $32,000. An entryway addition can be a great way to boost your home’s value while boosting its visual appeal and comfort. The extra space can be especially valuable for homeowners in areas that experience extreme weather. You’ll blow past any savings just trying to make the house safe.

So How Do You Know if You’re Buying a Deal or a Money Pit?

Preparation and the right team make all the difference. Work with an experienced realtor who can recommend highly qualified inspectors, contractors, and even architects or designers. Vet those professionals before you shop and let them know your goals. Contractor quotes for the same job can vary wildly—one plumber may charge $7,000 to replace pipes while another quotes $15,000. Having relationships in place helps you get realistic numbers and saves you from scrambling at the last minute.

Take it a step further—ask for preliminary quotes in advance so you already understand cost ranges for the projects you’re considering. Do your homework and come prepared—the $500 you spend upfront on inspections and consultations could save you from a six‑figure mistake later. In other words, spend a little now to avoid losing a lot later.

When you find the perfect house, order a thorough inspection, then have your contractor and design team walk the property. Get estimates based on the upgrades you want, not just the repairs needed. That way you know whether your dream kitchen remodel is $30,000 or $60,000 before you commit.