If you’re looking for a modest, reasonably priced home in today’s housing market, you will probably come across listings with descriptions such as “needs some tender loving care,” “here’s a chance to add your personal touch,” or even the hyperbolic “this is a great investment opportunity.” These fixer-uppers carry temptingly lower price tags that are especially alluring when you’re on a tight budget. However, many buyers underestimate the extent—and cost—of the work these properties...