For the last fifteen years or more, everyone seemed to think they wanted to buy a fixer-upper. All those design shows glamorized the sweat equity that came with purchasing a fixer-upper. So many buyers fantasized about all the money they were going to make by finding and renovating that fixer-upper. But according to a new analysis by Zillow, the popularity of fixer-uppers might be dwindling.
Zillow found that buyers are willing to pay nearly four percent more than expected for a home that is already remodeled—or an $13,194 on an ordinary American property. Furthermore, remodeled listings get 26 percent more saves on a daily basis and are shared 30 percent more often between home-hunting partners than similar properties that need work. Amanda Pendleton, Zillow’s home trends expert, has a theory for why some buyers may be less enthusiastic about sledgehammers these days.
“Buyers who are already stretching their budget to afford a home in today’s market may not be willing or able to spend more on renovations or repairs,” she says in the report. “A remodeled home may come with a higher price tag, but a buyer would get to spread that additional cost over the course of a 30-year mortgage versus paying cash upfront to make similar upgrades themselves."
This is why it is so important for sellers to do the fixer-upper things that buyers can't afford to. Painting a neutral color like Sherwin Williams Agreeable White, refinishing scratched floors, replacing dated appliances, trimming the bushes and putting down mulch are all things that will make the house shine and bring more money to the seller in the end.
If you are thinking of selling a home in the DC metro area, let's talk! I can be reached at 240-401-5577 or by email at lise@lisehowe.com. I would love to help you!
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