Many homeowners who purchase a fixer-upper say it was because they believed they’d save money. But they actually end up spending about the same or more than if they had opted for a move-in-ready home, according to a new study from Porch, a home remodeling website.
Porch surveyed more than 1,000 homeowners about recent repairs to their homes. More than one-third of respondents said they lived in fixer-uppers.
On average, respondents who bought a move-in-ready home paid just over $250,000, while respondents who bought fixer-uppers paid slightly under $200,000. But after renovations, fixer-upper homeowners tended to spend a total, on average, of nearly $247,000 if they actually were able to stay on budget. Fixer-upper homeowners who went over budget tended to spend more than $25,000 over than what a move-in-ready home would have cost them ($275,741 total).
Consumers are being drawn to fixer-uppers. Thirty-seven percent of those surveyed say that home improvement TV shows influenced their decision to take on a fixer-upper. The most influential shows, according to the survey, were “Grand Designs,” “Million Dollar Decorators,” “Flipping Out,” “Design on a Dime,” and “Rehab Addict.”
Staying on budget when fixing up a fixer-upper proves a challenge. Forty-four percent of respondents said they went over budget. The following were the top projects that most caused homeowners to go over budget:
- New HVAC
- New appliances
- New flooring
Source: “Turnkey Homes vs. Fixer Uppers,” Porch.com (June 2019)