The limited number of entry-level homes for sale coupled with rising prices is turning many homebuyers’ attention toward homes that need updating or repairs.
Homes that need work are in less demand than homes that are in pristine condition, affording homebuyers the opportunity to pay less for a home, yet get the features and ambiance they want through remodeling.
According to realtor.com's most recent homebuyer survey, over half of participating homebuyers are willing to spend $20,000 or more on renovation. Why? Ninety-59% of them are confident they’ll get a positive return on their investment.
The survey found that about three out of five home shoppers under 55 years-old are considering buying a home that needs renovating, and fifty-nine percent of homebuyers between 18 and 34 years-old are willing to tackle a fixer-upper.
Ideas for renovations are easy to find on your cellphone or tablet from Pinterest and Instagram to Houzz, to a plethora of home remodeling shows on your television. In fact, 60% of homebuyers surveyed said they were influenced by home remodeling shows to consider buying a fixer-upper.
One-third of homebuyers said that a kitchen upgrade would be their first priority, and one-quarter said they wanted to remodel a bathroom, followed by 20% who want new wood flooring.
According to the National Association of Home Builders, homebuyers are most interested in having a laundry room to close off piles of dirty clothes and linens, along with Energy Star appliances and windows throughout the home.