Buyers Want and Pay More for Turn Key Condition

There was a time when buying a fixer-upper was seen as a savvy move—a way to get into the market at a lower price and build equity through renovations. But according to new research from Zillow, that era might be coming to an end.

Home buyers today are putting a premium on move-in-ready properties. In fact, Zillow found that remodeled homes are selling for nearly 4% more than expected, translating to an extra $13,194 on a typical U.S. home. These homes also get significantly more attention online, receiving 26% more saves and 30% more shares than their non-renovated counterparts. The message is clear: buyers want homes they can step into without worrying about costly upgrades.

Meanwhile, fixer-uppers are selling for a steep discount—the biggest in three years. Homes that need work are going for 7.3% less than similar listings, and those described as needing "TLC" or "work" are selling for about 8% under market value. While that may sound like a great deal, rising renovation costs and high interest rates mean buyers are often better off paying more upfront for a home that's already updated.

So, why the shift? A big part of it comes down to affordability. With mortgage rates and home prices still stretching many budgets, buyers are hesitant to take on renovation projects that require cash on hand. Instead, they’re willing to pay a bit more for a finished home, spreading that cost over a 30-year mortgage rather than shelling out tens of thousands in immediate expenses.

This trend is a stark contrast to the mid-2010s, when home improvement TV shows and skyrocketing home values made fixer-uppers an attractive option. Back then, many buyers were willing to gamble on a project, knowing their home's value would likely appreciate rapidly. But in today’s slower market, sellers can no longer assume a renovation will lead to a massive payoff.

Interestingly, nearly 30% of Zillow listings now include the word "renovated," reflecting a flood of updated homes hitting the market. Many of these homes are the result of the renovation boom triggered by the pandemic, as homeowners updated their spaces for remote work and long-term comfort. Now, as those homeowners look to sell, they’re finding eager buyers willing to pay a premium for a move-in-ready space.

For those thinking about selling, this shift is worth noting. If your home is outdated, pricing competitively or making some key upgrades could help attract buyers. On the flip side, if you're in the market for a home and willing to take on a project, fixer-uppers are offering some of the best discounts in years.

In real estate, trends always evolve, but for now, one thing is clear—buyers want convenience, and they’re willing to pay for it.

Source: Zillow Group, Inc., February 19, 2025