These two Toronto houses have two-bedrooms, one-bathroom and are $150,000 apart in price. Which is the better deal?

#GTAHomeHunt is a weekly series from the Star that gets into the details of real estate listings in Toronto and the Greater Toronto Area. Have a tip? Email us at social@torstar.ca

In this housing market, is it better to buy a cheaper property that requires extensive renovations, or purchase a move-in-ready home for a higher price?

For this week's GTA Home Hunt, realtor Othneil Litchmore dives into what first-time homebuyers should keep in mind when looking for their future place, and how they can score the best possible deal for their budget.

Prices: $699,000 and $849,900

Neighbourhoods: Beechborough-Greenbrook and Weston

What do the properties have to offer?

Located in Beechborough-Greenbrook, 69 Claybrooke St. is a detached bungalow with two bedrooms and one bathroom, ample parking space and is close to parks, public transit and schools.

Listed for $699,000, the property also features a basement with a separate entrance that with renovations could become an in-law suite or a long-term rental.

The kitchen, too, could use some updating, Litchmore said, and perhaps some landscaping in the backyard to transform the space into a comfortable outdoor living area.

Not too far away in Weston, 47 Denison Rd. W. is listed for $849,900, and, like 69 Claybrooke St., has two bedrooms and one bathroom, along with an unfinished basement, and is close to parks and public transit.

The difference between the two properties?

The interior of 47 Denison Rd. W. is more updated, complete with what appears to be a fresh paint job and a more modern feel compared to 69 Claybrooke St., but it doesn't seem to have a separate entrance to the basement. And, of course, it has a listing price $150,000 above what the other property is listed for.

Which property is a better deal?

For both properties, the sellers are likely expecting the homes to sell for more than they're listed for, Litchmore said.

The potential buyer of each will likely have different priorities - including how much time they want to spend making the properties their own, and how much they're willing to spend.

Of the two, 47 Denison Rd. W., will likely sell for the greater price in the end as it's move-in ready, making it more attractive for a potential first-time buyer who considers renovations extremely inconvenient," Litchmore said.

They might not know where to find the contractors, so they're willing to pay a premium to avoid the hassle of going through construction."

Less stressful situations are likely on the horizon for the buyer of this property, which makes it more attractive for folks who want to move in right away.

Plus, when you step into a property and can see yourself living there immediately, it may excite a buyer and lead them to spend more, he added.

The property at 69 Claybrooke St. will likely sell for more than it's listed for, too, but it requires renovations that could cost up to more than $150,000 - a price some may not want to bear, and a project that may seem intimidating or inconvenient, Litchmore said.

But if a first-time buyer looking for a deal is willing to put in some work, knows of a reliable contractor and isn't afraid of sawdust, it might be an offer too good to pass up, especially since resale value will likely skyrocket when the renovations are complete.

A lot of real estate investors ... always suggest first-time buyers or people looking to save money should aim for homes that need work because they'll be able to save on the initial cost," Litchmore said.

And 69 Claybrooke St. doesn't appear to have structural damages that could cause bigger issues - and costs - during the renovation process, the changes will likely mostly be cosmetic.

If you're handy, or can find someone handy and slowly work through it, it has a lot of potential," Litchmore said.

What should you keep in mind before buying a property like this?

In this competitive housing market it may not be possible for a potential buyer to request a home inspection before purchasing a property in need of renovations, Litchmore said, but that shouldn't stop folks from doing their due diligence before making a huge investment.

If you've ever watched Love It or List It,' they start digging around and all of a sudden you hear the foundation is sinking and you have to spend money to fix it," Litchmore said.

So, those granite countertops and new appliances you were planning on getting? You can't anymore because you've for to fix this broken pipe or something."

If a home inspection isn't in the cards, Litchmore suggests bringing along a contractor who may be able to perform a brief visual inspection during the tour to prevent the unfortunate situation of having to pay more than expected should damages be uncovered during the renovation process.

Which property offers the best deal?

Litchmore's verdict on which property is a better deal?

It depends on the buyer, but it's probably better to get a fixer-upper - there's more discount, and there's a greater ability to control your costs."

Alessia Passafiume is a GTA-based staff reporter for the Star's Express Desk. Follow her on Twitter: @alespassafiume