Most homebuyers, including first-timers, are now getting smarter. Because of the rising costs of buying properties, shoppers are finding ways to cut corners. That is why this year, many aspiring homeowners are going for a fixer-upper as their first home.
A study shows that around 60% of consumers who are looking to buy a house in the market are considering properties that need tough love—meaning those that need renovation or remodeling. The survey adds that shoppers nowadays are looking for alternative ways to save. And one solution that they find plausible is by selecting a property that needs some labor instead of buying a house that is beyond their reach.
How media affects shoppers’ behavior
Many experts observe that today’s homebuyers are more confident when it comes to home renovation projects. These young aspiring shoppers are between 35 and 54 years old. Some of them belong to a group that may have already owned a home and has experience when it comes to renovating or maintaining their homes.
Media outlets, particularly the TV and internet, play a crucial role in their thinking and behavior. Most of these young house buyers are inspired by the DIY renovation and remodeling projects that they see on TV.
Seeing how other people transform their walk-in bathtubs in Salt Lake City, for example, amazes them to the point that they want to do it themselves, too. Whether they saw a project on a TV show or got inspired by the before and after photos, home shoppers are trying to turn their dream home into a reality.
More than half of these home shoppers are willing to shoulder $20,000 worth of renovation costs. Almost all even expect to get the money back as they boost the value of their property.
$300K is the average home price now
Experts say that the median price of an average home in the country is now at $300K, which is a price tag that is far beyond what most people can afford. Once the year starts to hit the busiest season for the housing market, people should expect the prices to rise even further.
This growing trend may be beneficial to home sellers, especially if their property needs a few renovations and upgrades. With the ever-increasing number of buyers looking for a fixer-upper, it is no doubt that your property will sell like hotcakes as soon as you post it online.
But keep in mind that home shoppers may only find it interesting because they think that they can get something in return. So, if you are open to making a deal, then it will work to your advantage.
Most people who are currently on the lookout for properties to renovate often plan to turn them into profit. One idea that most have in mind is by converting them into rental properties. But with today’s housing market climate, it is more likely that home shoppers will be looking for properties that they will be able to live in for years.