With Inventory Low: Will Your Dream Home Need Some TLC?
TLC- Tender Loving Care, but Realtor speak for, “This house needs some work!”
Nealry 60% of Homebuyers Would Consider a “Fixer-Upper”
According to a new survey from Move.com, the wave of first-time homebuyers hitting the market this summer has resulted in an interesting statistic. Nearly 60% of buyers searching for a home this spring are willing to consider buying a fixer-upper, with 95% believing that the projects needed will increase their new home’s value! (always consult your favorite Realtor first)
Realtor.com’s Chief Economist, Danielle Hale, pointed to low-inventory at the entry-level price range for the increase in willingness to renovate. In the Charlotte market, as many as half of the entry level, $150-200K are cash sales to investors.
“The combination of rising home prices and limited entry-level homes for sale is prompting many home shoppers to consider homes that need renovating.
Replete with inspiration at their fingertips – like Pinterest, Instagram, and various home renovation TV shows – some home shoppers are comfortable tackling home renovation jobs to find a home that balances their needs with their budget.”
It starts with Where do you want to live... and then you look at your budget. If you are like many of us, the budget, in our fav neighborhood doesn’t quite get us all we were looking for. So, the dilemna is, do we buy a “lesser” house where we want to be, one that may need some work, or do move further “out” and get the house we want. As you can see below, in Charlotte and around the country, people are living where they want, and renovating as budgets permit.
Half Would Spend Over $20,000 If Needed
In addition, just over half of all respondents who said they would be willing to buy a home in need of some work, and would also spend more $20,000 to make the home fit their needs.
The most common ‘expected’ renovation is a kitchen remodel which can run anywhere from an inexpensive facelift, call it $10,000. More common is the low $20,000 range for a minor remodel on up to $50-75,000 for a more major remodel. Often these prjects can get over $100,000 with additional square feet or extenive interior renovations.
This isn’t a new trend by any means. According to the Joint Center for Housing Studies at Harvard University, home improvement project spending reached a new high in 2018.
“Americans spent $336.9 billion on remodeling projects, up 7.4% from the $313.6 billion a year earlier.”
Home renovation television shows have given many buyers hope that they could renovate a home they can afford into their dream home! But be warned, the half hour “docu-drama” hides the complexity quite well
If you are one of the many Americans considering buying a home this spring, let’s get together to help you find a house with the potential to be your dream home! We are “building” real estate agents, it is in our DNA. Check our our founders story, and test our Agents. We know building.
Interested in design ideas as you look for a home? We can help. Interested in flipping homes? We can help. We also provide “After Renovation” value estimates. We have a treasure trove of quality contractors, remodellors and builders available to our clients. In most Charlotte markets, renovations add real value. Check with us when planning.