Sorry, Home Depot, we have entered the age of move-in ready. Buyers are willing to pay nearly 4% more than expected for a home that is already remodeled (3.7%)—an additional $13,194 on a typical U.S. home. That’s the highest sale price premium of all 359 listing keywords in a new study by Zillow, which looked at more than two million homes listed for sale on their site in 2024.
Zillow found that remodeled listings had higher metrics of demand: they got 26% more daily saves, and were shared with a buying partner 30% more often than similar homes that were not remodeled. That all leads to the conclusion that shoppers are more serious about remodels, and more likely to take the next steps toward purchase.
While it might seem logical that remodeled homes would sell for more, that hasn’t always been the case. Last year’s Zillow analysis of listing keywords found the term “remodeled” only contributed to a 0.8% sale price premium, meaning we’ve have a 450% increase in just 12 months. Prior to the pandemic, Zillow research found listings that mentioned “Fixer,” “TLC,” “Needs Work” or “Good Bones” were more likely to sell than listings without those terms.
“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.”
Ironically, fixer-uppers have moved from the option for those trying to get into a house more affordably to the target of cash-flush buyers who want to customize their new home. It’s all in the keywords: a “Fixer-Upper” sells for 7.3% less than a similar home, the largest discount in three years, while a home that “Needs Work” or “TLC” sells for around 8% less than expected. That equates to more than $28,000 for a typical U.S. home, which seems like a bargain. But add in the rising costs of renovations (thank you, inflation and high interest rates) and what looked like cost savings can quickly vanish.
America’s love affair with the fixer-upper began over a decade ago, in the mid-2010s, as home prices post the Great Recession began to rapidly increase. First-time millennial buyers looking for more affordable options chose homes that needed work, the DIY movement being fueled by all your favorite before-and-after renovation TV shows (looking at you, Property Brothers). Skyrocketing home values meant that any mistakes or budget overruns were financially forgiven due to the huge equity gains as homes appreciated rapidly.
But that was then and this is now…when home value appreciation has returned to earth. In 2024, homes nationwide appreciated 2.6%, and Zillow is forecasting 2.9% home value growth in 2025. With buyers gaining the upper hand in more parts of the country, sellers aren’t so sure that a costly gut renovation will quickly pay off. That said, thanks to the pandemic’s renovation boom, 28% of all for-sale listings on Zillow are now described as “renovated.”
Click here for more on Zillow’s report on U.S. home renovation trends.
