Loan Officer | NMLS #1166673
Branch NMLS #1711540
Posted On July 25, 2017
Zillow reports that buyers are more open to “fixer uppers” than ever before. With the rising popularity of home renovation shows, limited available housing inventory, and budgetary restrictions, first-time home buyers, especially millennials, are exploring options in need of repair or renovations over starter homes.
Zillow chief economist Svenja Gudell acknowledged the influence of home renovation shows on today’s buyer. She said, “In general, buyers today are a lot more educated about the real estate market in part because they watch more HGTV, and come across certain terms and processes in mainstream media.”
The National Association of Home Builders (NAHB) reports the most popular kitchen renovations include wood cabinets (85%), stainless steel appliances (79%), and granite countertops (64%), all staples of home renovation shows like “Property Brothers” on HGTV. First-time home buyers are also getting more specific with their home searches, also. According to the Chase Search for Home Snapshot, as of April 2017, the top five home styles searched on Google were mansion, yurt, bungalow, brownstone, and minka. In a heated housing market, shoppers are narrowing their searches and making moves quickly when interested in a certain style of home.
However, despite the potential for costs savings, budgeting is often reported as the “biggest shock” for renovators. Home renovation shows also depict unrealistic timeframes for renovation projects. Renovators that end up carrying the cost of their fixer upper’s mortgage plus the cost of the rent for their current living situation may be in for a surprise.