Do complete fixers appreciate at the same rate?

[Carl Johnson]

Hypothetical question...

let's say an owner owns a house that is in complete need of renovation from top to bottom...but the house is in a decent neighborhood in a generally expensive area.

Does the house gain in value at the same rate per year as other properly maintained houses in the same area? To me, it doesn't really make sense that it should...the cost to bring the house up to standard also goes up...so the only appeal of such a house would be an under market price. 

Thanks for any feedback.