Virtual renovation of 13 West 106th Street, Unit 4A | https://www.cityrealty.com/nyc/central-park-west/the-ellington-house-13-west-106th-street/122960/4A/FfduYaHR
Buying a fixer-upper can be a great way to enter the housing market for the first time or to purchase a property that would otherwise be out of reach. However, nearly any fixer-upper also presents complexities and costs that far exceed those associated with buying a move-in-ready property. This article explores the opportunities and risks of buying a fixer-upper, specifically in New York City, and highlights just some of the incredible deals on fixer-uppers currently available citywide.
In this article:
Opportunities
Despite being a daunting decision, buying a fixer-upper can be a strategic and rewarding one for buyers.
Existing condition at 13 West 106th Street, Unit 4A | $299,000 | https://www.cityrealty.com/nyc/central-park-west/the-ellington-house-13-west-106th-street/122960/4A/FfduYaHR
Lower sticker price
If you care about living in a specific location or type of building that would typically be out of reach, opting for a fixer-upper can be a great way to get into an otherwise out-of-reach market. After all, if a property has a bathroom from the 1950s, a kitchen that transports you back to the 1980s, or is generally in disrepair, expect to pay less than you would for a version of the same apartment that has been recently renovated. Still, if an unrenovated property—especially one with prewar features in pristine condition—goes on the market, the discount may not be steep. Like any unit, when it comes to fixer-uppers, cost is determined by multiple factors, including supply and demand.Opportunity to create a bespoke residence
The best thing about buying a fixer-upper is that you will likely be carrying out a gut renovation, which is an opportunity to design a property from the ground up. Beyond a few fixed features (e.g., water lines and retaining walls that can’t be moved), you’ll have the freedom to make countless decisions. From whether to opt for an open or separate kitchen to where closets and other built-in features are installed, you and your architect will be free to build a bespoke residence based on your wants and needs.
1040 Park Avenue, #10H | Asking $775,000 | https://cityrealty.com/n/I3256871
Potential financial gains
If you buy a fixer-upper and carry out a professional renovation, the apartment will almost certainly be worth more post-renovation. How much more depends on the extent and quality of the renovation (this article discusses the expected return on investment associated with different types of renovations). Still, whether you realize a return on your investment—especially if you opt to sell within five years of buying and renovating—will depend on the initial investment and the current market rate for similar apartments.
446 West 47th Street #5E prior to renovation
446 West 47th Street #5E after renovation. The unit sold for more than double post-renovation after three years | SERHANT
Risks
Alongside the many opportunities, buying a fixer-upper in New York City presents several challenges and risks.
13 West 106th Street, Unit 4A | $299K | https://www.cityrealty.com/nyc/central-park-west/the-ellington-house-13-west-106th-street/122960/4A/FfduYaHR
Time and complexity of renovating an NYC property
If you are planning to gut-renovate an New York City apaartment, it will require far more planning than similar home projects in most regions of the country due to the city’s complex building bylaws. In fact, the first thing you’ll need to do is hire a registered architect or professional engineer to file your plans with the NYC Department of Buildings (DOB). After gaining approval—which can take weeks or longer—you’ll also need co-op or condo board approval. Since you’ll likely be carrying out a complex renovation that may take months and even over a year to complete, you’ll also want to let your neighbors know that a gut renovation is about to take place.Financing obstacles
Lenders assess risk, so if an apartment is in exceptionally bad condition, it may not qualify for a conventional loan. In some cases, it may be necessary to rely on a short-term private-equity loan—also known as bridge financing or hard money—to bring the unit up to the standards needed to obtain a conventional loan.Insurance obstacles
Another potential challenge buyers sometimes face when purchasing a fixer-upper is that the unit may be uninsurable until certain upgrades are completed. This can arise for many reasons—for example, some older properties with early twentieth century wiring need to be rewired before they can be insured. If the property is uninsurable in its current condition, the best bet for a prospective buyer is to ask for a contingency that places the onus on the seller to bring the unit up to insurable condition prior to sale. If the seller is unwilling to proceed under these terms, there are alternatives, including purchasing the property in uninsurable condition—though this comes with obvious risks—and obtaining insurance after addressing the stated issues.Cost of renovations
It is rare for renovations to cost less than the original estimate and very common for renovations to cost much more. In general, New York City renovations cost anywhere from $300 to $800 per square foot, with more complex projects (e.g., gut renovations of bathrooms or kitchens with high-end finishes) costing more. At $300 to $800 per square foot, even a low-end project is still relatively costly. If you buy a 750-square-foot one-bedroom fixer-upper for $500,000, for example, a basic renovation will almost certainly cost at least $200,000 and may cost $350,000 to $400,000. While this may seem expensive, if you ultimately end up with a beautifully gut-renovated 750-square-foot apartment in a fantastic neighborhood having paid a total of $850,000 to $900,000, you’re still likely to come out on top. In Manhattan, the median apartment price (condos, condops, and co-ops) in 2025 reached $1.2 million in the third quarter.Return on investment
Depending on the property’s original price, the cost and extent of the renovation, and how long you hold the property, the potential return on investment can be significant. However, given the unpredictable cost of carrying out a gut renovation, it is always difficult to predict in advance how much you’ll realize in return, especially if the plan is to sell the apartment immediately following a renovation.
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Select Fixer-Uppers on the market priced under $1 million
Prospect Tower, #716 (Compass)
225 East 79th Street, #8C (Brown Harris Stevens Residential Sales LLC)
13 West 106th Street, #4A (Compass)
521 East 88th Street, #5C (Serhant)
Stimson House, #3E (Christies International Real Estate Group LLC)
The Regatta, #528 (Compass)
Bowert Court, #8A (Compass)
Chatham Towers West, #25E (Cicada International LLC)
179 East 79th Street, #15D (Serhant)
19 East 88th Street, #4H
$650,000 (-23.5%)
Carnegie Hill | Cooperative | 1 Bedroom, 1 Bath | 1,000 ft2
19 East 88th Street, #4H (Corcoran Group)
Carlton Regency South, #15G (Douglas Elliman Real Estate)
The Clinton Hill Cooperative Apartments, #12B
$730,000
Clinton Hill | Cooperative | 1 Bedroom, 1 Bath
The Clinton Hill Cooperative Apartments, #12B (Compass)
1040 Park Avenue, #10H (Douglas Elliman Real Estate)
Rockefeller Apartments, #10E (Sothebys International Realty)
Charing Cross House, #5GN (Corcoran Group)
370 Central Park West, #413
$849,000 (-10.6%)
Central Park West | Cooperative | 2 Bedrooms, 1 Bath | 900 ft2
370 Central Park West, #413 (Compass)
The President, #1A (Decode Real Estate)
60 Remsen Street, #10C (Brown Harris Stevens Brooklyn LLC)
250 Mercer Street, #C-201 (Find Properties)
311 East 71st Street, #8G (Compass)
Stimson House, #3EF (Christies International Real Estate Group LLC)
315 East 70th Street, #8G (Brown Harris Stevens Residential Sales LLC)
25 Charles Street, #4C (Compass)
Willoughby Walk, #1206 (Compass)
Fred Leighton Building, #4N (Compass)
Astor Terrace, #18A (Douglas Elliman Real Estate)
Would you like to tour any of these properties?
Just complete the info below.
Or call us at (212) 755-5544
Would you like to tour any of these properties?
Contributing Writer
Cait Etherington
Cait Etherington has over twenty years of experience working as a journalist and communications consultant. Her articles and reviews have been published in newspapers and magazines across the United States and internationally. An experienced financial writer, Cait is committed to exposing the human side of stories about contemporary business, banking and workplace relations. She also enjoys writing about trends, lifestyles and real estate in New York City where she lives with her family in a cozy apartment on the twentieth floor of a Manhattan high rise.
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