Is the Fixer-Upper Era Over?
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Buyers are increasingly turning away from fixer-uppers—and opting for remodeled or move-in-ready homes instead.
According to a recent Zillow report, this trend is fueled by a desire for convenience and rising renovation costs, which have made the allure of “TLC” homes much less appealing. Here’s a breakdown of what’s happening and why the era of the fixer-upper may be nearing its end.
Remodeled Homes Are in High Demand
In a market where every penny counts, buyers are willing to pay a premium for homes that are move-in ready. Zillow’s analysis found that homes labeled as “remodeled” see the highest sale price premium of any listing keyword—3.7% higher than expected.
This translates into an additional $13,194 on the sale of a typical U.S. home.
But it’s not just about price—these homes are also gaining attention. Listings that highlight being “remodeled” receive:
- 26% more daily saves
- 30% more shares with shopping partners
Buyers are clearly eager to find homes that require little to no work, and they’re willing to pay for that convenience.
Fixer-Uppers Are Selling at a Discount
On the other end of the spectrum, fixer-uppers are selling for their biggest discount in years.
Homes listed as “needs work” or “TLC” now sell for about 7.3% less than similar homes—a price cut that has gone up over the last three years. This amounts to a $28,000 savings on the typical U.S. home.
Why the sharp drop in interest? A few factors are at play. For one, the cost savings of purchasing a fixer-upper are shrinking due to rising renovation costs, inflation, and high interest rates. Zillow reports that homes labeled as “fixer,” “TLC,” or “needs work” are now selling for about 8% less than expected.
For another, the overall appeal of taking on a major project has waned. Go figure.
With the cost of everything going up, it’s hardly surprising today’s homebuyers don’t want their new home to come with a list of expensive fixes to make the place livable.
Shifting Buyer Preferences & Market Trends
The landscape has changed dramatically in just a few years. In 2023, the keyword “remodeled” contributed to a 0.8% sale price premium, but that number has jumped to 3.7% in 2024.
Prior to the pandemic, homes described as “fixer,” “TLC,” or “needs work” had a better chance of selling. That trend has now reversed, as buyers prioritize homes that are ready to move into.
While Zillow forecasts 2.9% growth in home values in 2025, the housing market is now growing at a much slower pace compared to the post-Great Recession boom. For many buyers, the convenience of a move-in-ready home outweighs the potential savings of buying a fixer-upper.
The Rise of Move-In-Ready Homes
In 2024, 28% of all for-sale listings on Zillow mentioned being “renovated.” This surge in listings reflects the pandemic-driven renovation boom, fueled by remote work, rising home equity, and aging housing stock.
It’s clear that buyers are no longer looking to invest in long-term projects but instead are focused on securing homes that meet their needs right away.
Today’s buyers are opting to finance a higher purchase price for the convenience of a move-in-ready home, rather than using cash to fund expensive renovations. The remodeling trend is here to stay, signaling a shift in how people view homeownership—and how much they’re willing to spend for a home that’s ready for the future.
TL;DR
The fixer-upper’s time in the spotlight may be over, at least for now.
As buyers continue to prioritize convenience and the costs of renovation continue to rise, the appeal of move-in-ready homes is stronger than ever.
The message is clear: If your client is selling a home that’s been remodeled, you’re likely to see higher demand and a better price. But if they’re holding onto a fixer-upper, it may be time for a conversation on pricing strategy—or on what they can do to make their home as move-in-ready as possible. It may be a DIY-er’s dream, but if the number of those buyers had dwindled, as Zillow’s research indicates, it’s worth considering how much it would cost to make your seller’s home appealing to more buyers.
It’s not about picking the cheapest things to fix, either (though that might be enough to attract more fixer-upper-friendly buyers). Make a list of the problems that make your seller’s home a fixer-upper and discuss targeting those first, even if it means your seller will have to spend a considerable amount to attract buyers.
Help them see how investing X amount to fix a big-deal problem could ultimately result in a sale price that makes that expense worthwhile. And be ready to provide information on trusted service professionals in your area.
Key Details:Â
- Zillow’s latest report reveals that remodeled homes are commanding a 3.7% premium, with buyers paying an additional $13,194 on average.Â
- In contrast, fixer-uppers are selling at a 7.3% discount, the biggest in three years, due to rising renovation costs and buyer preference for move-in-ready properties.Â
- With 28% of listings now labeled “renovated,” convenience is clearly winning over customization.
Posted by Sarah Lentz | Feb 20, 2025 | Housing Market
https://nowbam.com/is-the-fixer-upper-era-over/
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