House renovation and design television programs may be prompting more buyers to shed some of their fixer-upper fears. Nearly 60 percent of home shoppers recently surveyed said that home renovation television has made them more optimistic about renovations, according to a new realtor.com® survey of about 1,000 consumers who are planning to buy a home in the next 12 months.
As inventories remain tight in some markets, home buyers are eyeing properties they once cast aside to look at them under a new lens of how they could renovate it. Nearly 60 percent of the home buyers surveyed say they are considering buying a home that needs renovation, the survey showed.
“Whether it’s seeing the project unfold in a tidy 30-minute segment, or just getting inspired by the before-and-after shots, home shoppers are turning to home renovations to make their dream home when finding one as-is turns out to be difficult,” the survey notes.
Rising home prices and a limited number of entry-level homes are helping springtime home shoppers consider other homes that need renovating, says Danielle Hale, realtor.com®’s chief economist. “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,” she says.
Buyers expect their renovations to make a big difference on the value of the home, too. Ninety-five percent of buyers say they expect some home remodeling will result in a positive return on their investment. Nearly a quarter of buyers surveyed say they expect a positive return of more than 50 percent from their remodels.
They’re willing to spend the big bucks, but is it enough? Slightly more than half of home buyers who are considering a home that needs some TLC say they are willing to spend more than $20,000 on the remodel. Twenty-eight percent are willing to spend up to $10,000, and 22 percent are willing to spend between $10,001 and $20,000. However, a kitchen remodel costs around $66,000, and even a minor kitchen remodel will cost about $22,000, according to realtor.com®. A kitchen upgrade was the top home renovation project that buyers said they would consider. Other popular projects include a bathroom renovation or a hardwood flooring refinish.
Regardless if a buyer wants to DIY or not, it’s important that clients fully understand the benefits and setbacks that can come with taking on a home project, as opposed to hiring professionals to complete the task.