Spring 2019 might just be the year for homes in need of renovation. According to a study by realtor.com, nearly 60% of homebuyers are considering the purchase of a fixer-upper.
Around 95% of those homebuyers believe that a little care for these type of homes will go a long way in giving them a positive return on investment.
In fact, the study found that just over half of those homebuyers are also willing to spend more than $20,000 on renovations as rising home prices and limited entry level inventory continue to be a hurdle in buying a brand new home.
Realtor.com conducted this study through an online survey in March, consisting of 1,015 respondents planning to purchase a home in the next 12 months.
According to the survey, roughly three out of five home shoppers under 55 years-old are considering the purchase of such homes this spring. "At 65% middle-aged shoppers are more likely to be current homeowners and their experience with maintaining and improving their existing home could give them the confidence to tackle renovations, especially when motivated by trying to find a home that fits their needs within their budget," noted Danielle Hale Chief Economist at Realtor.com.
The study found that only 59% of younger home shoppers aged 18-34 years-old, who are less likely to be current owners, are considering a home in need of renovation. Less than a third of buyers older than 55 years-old would consider a home that needs renovations.
In terms of their spending power on renovations, the study indicated that while 51% were willing to spend $20,000, 28% said they would spend up to $10,000 and 22% were willing to spend between $10,001 and $20,000.
But would these amounts be enough for renovation? Not really. According to realtor.com data, a major kitchen remodel can cost around $66,000, while a minor remodel will cost around $22,000. Similarly, an upscale bathroom remodel will cost around $64,000, while a midrange bathroom remodel runs to about $20,000.
Click here to read the full Spring Homebuyer report.