Many potential buyers are struggling in the current housing market, but even with the market teetering in sellers’ favor, not every house is flying off the market.
Buyers don’t want fixer-uppers
In a recent podcast, J.R. Whalen of the Wall Street Journal noted, “Traditionally, fixer-upper homes have given buyers an opportunity to save some money on the cost of the house and remodel and renovate to their liking. But in today’s housing market, almost nobody wants them.”
We found a similar pattern in our own survey, with 77% of buyers saying they wouldn’t consider purchasing a home that isn’t “move-in ready.” In essence, the ship has sailed on fixer-uppers, and real estate agents who are trying to move these outdated homes will struggle.
A lot of today’s buyers are made up of first-time homebuyers, millennials and baby boomers, and all these buyers are looking for move-in ready homes.
Not surprisingly, first-time homebuyers do not want to deal with the stress that fixer-uppers can entail. A move-in ready home appeals to their inexperience with homeownership and likely home improvement projects. Not to mention the fact that these first-time homebuyers may have spent years saving up for a house. They may not be able to afford to fix up the home, too.
Sometimes referred to as the HGTV generation, millennials bought into the magic of the home makeover shows and now want the end result without the work. In fact, 78% of millennials said their top priority is finding a move-in ready home. Even minor repairs or updates can be a turnoff for this generation.
Many baby boomers are now empty nesters and hitting retirement age. If they’re moving, they’re likely looking to downsize and decrease their home maintenance requirements. They often no longer have the time or desire to put a lot of work into a home, so fixer-uppers are a no-go.
Money is tight
Besides just wanting move-in-ready homes, many homebuyers simply can’t afford to buy a fixer-upper. High mortgage rates, property prices and property taxes have increased the upfront costs of buying a home. On top of that, inflation, concerns about job security and high construction loan rates are also making buyers shy away from fixer-uppers.
Instead, many home improvement projects become wish list items for a few years down the road once they have the cash.
What this means for sellers and listing agents
Although inventory is low, fixer-uppers are still sitting on the market. Homes in need of repairs or renovations will not sell as fast or for as much as homes that are move-in ready. For agents with homeowners hesitant to make large updates, a little goes a long way, and simple repairs or minor updates could help the home move off the market faster. Agents who also give their clients options like pay-at-closing concierge services will win more listings and create better referrals.
Curbio works with agents and their clients to transform fixer-uppers into move-in ready homes with no payment due until the home sells. Interested in partnering with Curbio? Contact us at https://curbio.com/estimate.
For more information, visit https://curbio.com.