Why Buyers Pay Top Dollar for Some Homes

If you’ve wondered why certain homes seem to fly off the market while others take longer to sell, the answer often comes down to condition. As life gets busier, buyers are increasingly prioritizing homes that are truly move-in ready. This means fully updated; including newer kitchens and baths, modern HVAC systems, solid roofs, newer appliances, etc.

Recent data backs up what we’re seeing in the local market. According to a Zillow analysis, buyers are paying approximately 3.7% more for remodeled homes (prnewswire.com) This can easily translate to tens of thousands of dollars in added value.

Additionally, remodeled homes get significantly higher buyer engagement: Zillow reports 26% more “saves” per day and 30% more shares than similar homes that need work (Zillow.com).  Homes that are well maintained, with upgrades in key areas sell more quickly.

What motivates buyers?

• One of the biggest advantages of buying a home that has already been renovated is the ability to finance those improvements. Rather than writing a check to a contractor, buyers can roll the premium for upgrades into their mortgage. That makes the expense feel more manageable — especially when amortized over 15 or 30 years.
• Finding reliable contractors is hard. Labor shortages, rising material costs, and unpredictable timelines make renovations expensive and stressful. Many buyers don’t want to deal with managing quotes, delays, or the risk of cost overruns. Plus, contractors expect to be paid when work is complete, meaning a buyer needs to have the cash on hand to pay for the projects.
• Many buyers don’t have the time, desire, or expertise to take on a renovation. Busy professionals and growing families increasingly value convenience. 

How does this impact sellers?

In an ideal world, you will keep your home updated and well maintained so that when you are ready to sell, you don’t have to think about it. However, sometimes life gets away from us and we lose track of the passage of time. All of a sudden, a kitchen that was fully renovated in 2002 appears dated. Or that roof you “just replaced” is older than your young adult child. If you find yourself in this situation and you are preparing to sell, you have a choice to make. Take on some strategic projects or adjust your expectations on your home’s value.

If you’re preparing to sell, investing in select upgrades before listing can pay off but you want to be strategic about it. Not all projects will result in increased value and even if value is added, you might not recoup all the cost of your projects. Before you do anything, reach out and we can tell you what makes sense in your specific situation.

photo credit: istockphoto.com/rodworks