Nobody’s Buying Fixer-Uppers Anymore, But Here’s Why They Should

For as many wall-smashing, demolition-loving, shiplap-plastering home improvement television shows as there are, today’s buyers are surprisingly uninterested in purchasing fixer-upper properties. In fact, moving in and not lifting a finger is one of the biggest priorities for most first-time buyers, with one survey reporting that 78 percent of millennials prefer move-in ready homes.

So, why exactly are many home buyers snubbing the opportunity to be their very own version of Chip and Joanna Gaines? The chief reasons are the time suck that renovating creates, and the extensive hours needed to work on a drippy kitchen sink that cuts into things like work, side hustles, community activism, and travel.

Another reason why buyers aren’t interested in fixer uppers? “People want instant gratification,” says Mark Mason, a RE/MAX agent in Cottage Grove, Minn., and an avid fixer upper himself. “Older generations [of buyers] were interested in building ‘sweat equity’ and adding value to the home, but many people today overlook the benefits or aren’t willing to put in the effort.”

Although the freshly painted, amenity-rich new home is appealing to most buyers, you’re missing out on a lot when you opt for a turn-key property instead of a home that’s a little rough around the edges. Here’s why you should consider buying a fixer-upper home—orange carpet, linoleum flooring, brass light fixtures, and all.

You’ve probably seen the number-crunching “before and after the big renovation” graphics on a home improvement show. Renovations, especially upgrading the kitchen or the bathrooms, gets you instant equity that can take others years to build. Considering that only 11 percent of millennials consider a home to be a permanent place to live, these kinds of renovations will up the resale value.

In order to reap these benefits, it has to be the right type of renovation and the right scale, says Mason. When buying a fixer-upper property, he advises working closely with your real estate agent, who can help you buy it for the right price and ensure you’re yielding a good return on the improvements you plan on making.

“Your agent needs to make sure you’ve added the correct amount of value and that you don’t over-improve or under-improve the home based on the neighborhood location,” says Mason.

In other words, you don’t want to add $50,000 worth of renovation if it’s only going to get you $25,000 in value.

Let’s get real: Many home buyers are intimidated by home improvement projects because of the fear that they will accidentally blow up the house. (Just me? Okay then.) Often, however, a fixer-upper home only needs minor—yet completely transformational—aesthetic improvements that don’t require a sledgehammer or new blueprints, such as pulling up carpet, refinishing hardwood floors, or changing out light fixtures.

Still intimidated? Mason says novice DIYers can learn almost anything they need to know from YouTube instructional videos or leveraging their network of experienced home improvers like their handy dad or a contractor aunt.

But how can you be so sure your fixer upper only needs aesthetic fixes (and the house isn’t secretly falling apart)? Although there’s no way to be 100 percent certain until the inspection or, worse, once you start digging into a project, you can assemble a team to help you determine expected costs and the scale of renovation when you look at homes. If you are thinking about buying a fixer upper, Mason suggests hiring a real estate agent with construction experience as well as a contractor or handyman who can give you estimates for the work needed before you even submit a bid on the house.

Sure, it’s not as time consuming to pick out curtains or artwork for a move-in ready house as it is to change out the countertops or re-tile a floor, but making improvements on your home gives an increased feeling of joy when you’re there. In fact, a 2019 National Association of Realtors remodeling impact survey of consumers found that 74 percent of renovators have more desire to be at home after their renovation project is completed and 58 percent feel happy every time they see their finished product.

So, buying a fixer upper not only gives you unlimited ability to customize it to your taste, but it also makes home a happier place? Sign me up and take me to the nearest home improvement store.