In real estate, few types of homes stir up as much excitement mixed with a dash of fear as the so-called fixer-upper.
Buying a property in need of repairs might seem daunting to some, but others with a stomach for renovations and a diet of HGTV home makeover shows might salivate over the prospect of toiling over a home to make it their own.
In a real estate market characterized by elevated interest rates and still-rising home prices, the allure of a cheap fixer-upper might be growing stronger for some buyers who see it as a financially savvy route to homeownership…
Purchasing a fixer-upper typically involves more than just installing shiny new appliances and adding a spa bathroom so the home can be resold for more money. Some homes may be in such disrepair that the path to getting them updated and habitable will require time, effort, and money. Yet they also present a higher home value and personal satisfaction for those who commit long-term.
“If you look at renovation, a lot of it was fueled by new appliances and making your kitchen look great,” says Leaf Home CEO Jon Bostock. “Now it’s more about either getting a [return on investment] or preventing further maintenance. You’re starting to see those decisions.”
A study by Leaf Home, a home improvement company, recently found that more than two-thirds of baby boomers, “live in homes that are 30-plus years old, many of which have never undergone renovations or had major appliances replaced.”
This means the coming years could be primed for a generational housing shift where younger buyers might simply have no choice but to renovate.
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