Home renovators have made an honest living by fixing up distressed properties, and putting them back on the market. But, the latest study from Zillow indicates that home shoppers are passing on fixed up homes for properties that are more move-in ready.
Zillow’s analysis shows home shoppers are shelling out nearly 4% more than expected for a home that is already remodeled -- about $13,194 on a typical U.S. home -- to skip the dust, delays, and contractor nightmares. That’s the biggest sale price bump of all 359 listing keywords Zillow analyzed across two million homes in 2024.
Plus, remodeled listings on Zillow get 26% more daily saves and are shared with a shopping partner 30% more often than homes that still need work. Translation: buyers aren’t just looking -- they’re ready to make a move.
It wasn’t always this way. Last year, a “remodeled” home barely nudged up the sale price, adding less than 1%. And before the pandemic, homes labeled as “fixer,” “TLC,” or “needs work,” actually moved faster than those without the buzzwords.
So, what changed? Simple -- cash is king, and buyers are stretched thin.
“Fixer-uppers can be appealing to a first-time buyer trying to get their foot in the door of homeownership because they offer a lower initial price of entry,” said Amanda Pendleton, Zillow’s home trends expert. “However, buyers who are already stretching their budget to afford a home in today's market may not be willing or able to spend more on renovations or repairs. A remodeled home may come with a higher price tag, but a buyer would get to spread that additional cost over the course of a 30-year mortgage versus paying cash upfront to make similar upgrades themselves."
Fixing up a home is messy business and without a meaningful profit, Chip and Jo would rather skip the headaches of gutting a kitchen or tearing up the floors. Zillow’s data shows that fixer-uppers now sell for 7.3% less, and homes needing “TLC” or “work” go for about 8% under expected price—translating to more than $28,000 in discounts on a typical U.S. home. Sky-high renovation costs and inflated contractor rates mean fix and flip investors are putting in more sweat for less equity.
The mid-2010s saw the golden era of fixer-uppers, thanks to first-time millennial homebuyers hunting for deals and a wave of renovation reality shows making sledgehammer demolitions look fun. As home prices recovered in the decade following The Great Recession, buyers could afford a few mishaps and cost overruns on a home renovation, knowing the property value would rise regardless.
Today's housing market paints a different picture. Home appreciation cooled down to just 2.6% in 2024, with Zillow forecasting the average to be 2.9% in 2025. The era of guaranteed instant equity is fading, and sellers banking on a high-dollar renovation may not see that money boomerang back.
And sellers know it. Nearly 30% of all listings on Zillow now tout “renovated” as a key feature. After a pandemic-fueled renovation boom, those move-in-ready homes are flooding the market -- just in time for spring buyers who want a turnkey deal, not a construction zone.
Bottom line: The fixer-upper fantasy is fading. In today’s market, buyers want finished, polished, and hassle-free -- and they’re willing to pay for it.
