Is Paying More for an Updated Home Worth It? Here’s How to Decide

Inner Circle • March 11, 2025

If money were no object, would you Fix up this house?

If you’re in the market to buy a home, you probably want to negotiate the best price possible. But in today’s market, getting the best deal isn’t just about negotiating the lowest price—it’s about making a smart financial decision that balances cost, convenience, and long-term value.

Even if you’ve just started your home search, you’ve probably noticed that updated homes are often difficult to find and sell faster and at higher prices than homes that need some sprucing up. But how much more may not be so obvious…

Well, according to a recent press release, homes that are “remodeled” currently sell for nearly 4% more than expected, as opposed to last year when they only contributed to a 0.8% sale price premium.

This demand for updated homes signals a shift from the past when buyers were more willing to take on fixer-uppers. But does that mean paying a premium for a move-in-ready home is the best choice for you? Not always. The key is understanding when paying a premium for an updated home is worth every penny, and when rolling up your sleeves and tackling a few projects might be the better move.

The Math Behind Move-In-Ready Homes: Why Paying More Pays Off

For many buyers, choosing a home that needs work was once an appealing way to get more house for the money. But with today’s financing rates and inflation driving up renovation costs, that strategy isn’t always as cost-effective as it used to be.

The press release cited above also mentioned that fixer-uppers now sell for 7.3% less than comparable move-in-ready homes, which is the largest discount in three years. On the surface, that sounds like an opportunity. But the reality is that rising material and labor costs can quickly erase those savings. A kitchen remodel alone can easily exceed $50,000, and unexpected repairs often push budgets even higher. In some cases, paying a little more for a home that’s already updated can actually be the more affordable long-term option.

That doesn’t mean fixer-uppers are off the table. But if you’re considering one, it’s important to approach it with a realistic renovation budget, and an understanding that costs can change quickly. The home that seems like a better deal could become a financial headache if renovation prices climb beyond your expectations.

From an investment perspective, the financial math behind home improvements rarely favors the buyer who tackles renovations themselves. According to the 2024 Cost vs. Value Report, most remodeling projects don’t even provide a dollar-for-dollar return, let alone a profit. While minor updates—like replacing your garage door or front door—often offer solid ROI, big-ticket renovations like full kitchen overhauls or high-end bathroom remodels rarely recoup their full cost in resale value. And let’s be honest, when people think “updated,” new kitchens and bathrooms are the types of things buyers envision, not a couple of doors.

That’s one reason why many buyers are willing to pay more upfront. Instead of dealing with renovation stress, unexpected costs, and the hassle of living in a construction zone, they’re choosing the convenience of a move-in-ready home. And with the added bonus of being able to finance that cost over 30 years, the monthly payment difference might not be as significant as it seems at first glance, and likely more appealing than having to dip into the savings account or rack up the credit card bill.

When Paying More Makes Sense (And When It Doesn’t)

So, should you be willing to stretch your budget for an updated home? It depends. Here are a few things to consider:

When it makes sense to pay more:

  • You don’t have the time, patience, or expertise for renovations. Even minor projects can take months and often go over budget.
  • You want cost predictability. With an updated home, you’re not rolling the dice on how much renovations will actually cost.
  • The updates are worth more than the premium you’re paying. If you can buy an updated house for less than it would cost you to update any other options available to you, it’s likely a smart financial decision.
  • There just aren’t a lot of updated homes that come on the market. If renovated homes are few and far between, paying more for the opportunity to buy one can be money well-spent.

When buying a home that needs work might be the better move:

  • You have renovation experience or trusted contractors. If you’re handy and able to do the work yourself, or you’re able to hire contractors at a reasonable price, you may be able to save significantly.
  • You’re comfortable living through renovations. Some projects, like painting or flooring, can be done room-by-room over time, making it easier to live around. But if you need to do major kitchen or bathroom renovations, or gut the entire house, you’ll either need to be comfortable living through the chaos, or have a place to stay in the meantime.
  • You’re in a market where fixer-upper discounts are larger. In some areas, the price gap between updated and non-updated homes makes renovations a more viable option. If you can get a house that needs work at a substantial discount, and do the work for less than it would cost to buy an updated one, it might be worth the effort.
  • There just aren’t a lot of updated homes that come on the market. If renovated homes are few and far between, and you’re having trouble getting your offers accepted due to stiff competition for the few updated homes, it might make sense to buy one that needs work.

Every buyer’s situation is different, and there are cases where buying a home that needs work can still be a good investment. The key is to go in with clear expectations and a solid understanding of the true costs involved.

Working with a great real estate agent can help you evaluate your options and make a decision that aligns with your goals and budget. They can:

  • Help you compare updated and fixer-upper homes in your target market to see where the best opportunities lie.
  • Connect you with contractors and help you gather renovation cost estimates so you know what to expect before making an offer.
  • Help craft offers that give you a competitive advantage without overpaying.

The Takeaway:

Paying more for a move-in-ready home might seem like a splurge, but in reality, it’s often the smartest financial move. The best deal isn’t always about getting the lowest price—it’s about getting the best value.
If you’re looking at a fixer-upper, make sure the discount justifies the work and expense required. If you’re leaning toward a move-in-ready home, know that you’re not just paying for convenience—you’re paying for financial predictability and peace of mind.
No matter which route you choose, the right strategy can help you make a decision that stands the test of time. And that’s where working with an experienced real estate agent can make all the difference.


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Thinking About Renting Your House Instead of Selling? Read This First.

By KCM • September 13, 2025
Thinking About Renting Your House Instead of Selling? Read This First. If your house is on the market but you haven’t gotten any offers you’re comfortable with, you may be wondering: what do I do if it doesn’t sell? And for a growing number of homeowners, that’s turning into a new dilemma: should I just rent it instead? There’s a term for this in the industry, and it’s called an accidental landlord . Here’s how Yahoo Finance defines it: “These ‘accidental landlords’ are homeowners who tried to sell but couldn’t fetch the price they wanted — and instead have decided to rent out their homes until conditions improve.” Why This Is Happening More Often Right Now And right now, the number of homeowners turning into accidental landlords is rising. Business Insider explains why: “While there have always been accidental landlords . . . an era of middling home sales brought on by a steep rise in borrowing rates — is minting a new wave of reluctant rental owners." Basically, sales have slowed down as buyers struggle with today’s affordability challenges. And that’s leaving some homeowners with listings that sit and go stale. And if they don't want to drop their price to try to appeal to buyers, they may rent instead. But here’s the thing you need to remember if renting your house has crossed your mind. Becoming a landlord wasn’t your original plan, and there’s probably a reason for that. It comes with a lot more responsibility (and risk) than most people expect. So, if you find yourself toying with that option, ask yourself these questions first: 1. Does Your House Have Potential as a Profitable Rental? Just because you can rent it doesn’t mean you should. For example: Are you moving out of state? Managing maintenance from far away isn’t easy. Does the home need repairs before it’s rental-ready? And do you have the time or the funds for that? Is your neighborhood one that typically attracts renters, and would your house be profitable as one? If any of those give you pause, it’s a sign selling might be the better move. 2. Are You Ready To Be a Landlord? On paper, renting sounds like easy passive income. In reality, it often looks more like this: Midnight calls about clogged toilets or broken air conditioners Chasing down missed rent payments Damage you’ll have to fix between tenants As Redfin notes: “Landlords have to fix things like broken pipes, defunct HVAC systems, and structural damage, among other essential repairs. If you don’t have a few thousand dollars on hand to take care of these repairs, you could end up in a bind.” 3. Have You Thought Through the True Costs? According to Bankrate, here are just a few of the hidden costs that come with renting out your home: A higher insurance premium (landlord insurance typically costs about 25% more) Management fees (if you use a property manager, they typically charge around 10% of the rent) Maintenance and advertising to find tenants Gaps between tenants, where you cover the mortgage without rental income coming in All of that adds up, fast. While renting can be a smart move for the right person with the right house, if you’re only considering it because your listing didn’t get traction, there may be a better solution: talking to your current agent and revisiting the pricing strategy on your house first. With their advice you can rework your strategy, relaunch at the right price, and attract real buyers to make the sale happen. Bottom Line Before you decide to rent your house, make sure to carefully weigh the pros and cons of becoming a landlord. For some homeowners, the hassle (and the expense) may not be worth it.

Condos Could Be a Win for Today’s Buyers

By KCM • August 29, 2025
Condos Could Be a Win for Today’s Buyers Not every homebuyer wants the biggest house on the block. Some want something simpler, more affordable, and easier to maintain, especially in a market where every dollar counts. That’s where condos come in. For first-time buyers, they can be a smart way to get into homeownership without stretching your budget. For downsizers, they offer less space to maintain with the flexibility to stay in a great location. And right now, condos are one of the most buyer-friendly parts of the market. Condo Inventory Is Up, And That Means More Choice According to the National Association of Realtors (NAR), there are 194,000 condos for sale right now. That’s the second highest amount we’ve seen in the last three years (see graph below): Just remember, this is the national figure. The exact number is going to vary based on where you’re looking to buy. But, generally speaking, you have more options and less competition. You’re not stuck waiting for something to pop up or rushing into an offer just to beat someone else to it. You’ve got plenty to choose from. And if you’re particular about layout, location, or amenities, this is your chance to be selective. That’s a big shift from the market frenzy of just a few years ago. Compared to early 2022, we’ve got nearly double the condos available now. That gives you more breathing room to find the right fit. Prices Are Cooling, and Buyers Hold More Negotiating Power And since there are more for sale, many sellers are more open to negotiating right now. So, you may be able to get a better price. As Redfin explains: “. . . condo buyers in many cities may be able to find sellers who are willing to give concessions and/or sell for less than their asking price.” Condo prices are starting to ease in many markets. According to Intercontinental Exchange (ICE), condo prices dipped 1.3% in June compared to last year. And over half of the top 100 U.S. metros saw condo prices drop slightly year-over-year. Data from Redfin shows what the recent dip in prices looks like (see graph below): That doesn’t just help with affordability, it also shifts the power dynamic. Condo buyers in many markets are now in a position to negotiate on price and ask for concessions, like help with closing costs. Bottom Line Condos aren’t just a fallback option. In today’s market, they’re one of the most strategic ways to buy. With more options, softening prices, and more room to negotiate, now could be the right time to make your move. Could a condo check more boxes than you expected? Let’s talk through your options and find out.

More Contracts Are Falling Through. Here’s How To Get Ahead.

By KCM • August 23, 2025
More Contracts Are Falling Through. Here’s How To Get Ahead. When you sell a house , the last thing you want is for the deal to fall apart right before closing. But according to the latest data from Redfin, that’s happening a bit more often lately. The good news is, it’s completely avoidable if you lean on an agent for insight into why that is and how to avoid it happening to you. This June, 15% of pending home sales fell through . That means those buyers backed out of their contracts. That’s not too much higher than the norm of roughly 12% from 2017-2019, but it’s still an increase. And it’s one you don’t want to have to deal with. The key to avoiding this headache is knowing what’s causing the issues that lead to a buyer walking away. A recent survey from John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM) finds that agents reported the #1 reason deals are falling apart today is stemming from the home inspection (see graph below): Here’s why. With high prices and mortgage rates stretching buyers’ budgets, they don’t have a lot of room (or appetite) for unexpected repairs. Not to mention, buyers have more options to choose from now that there are more homes on the market. So, if the inspection turns up a major issue, they may opt to walk away. Afterall, there are plenty of other homes they could buy instead. Or, if the seller isn’t willing to tackle repairs , a buyer may back out because they don’t want the expense (and the hassle) of dealing with those issues themselves. The good news is, there’s a way you can get ahead of any unpleasant surprises as a seller, and that’s getting a pre-listing inspection. It’s not required, but the National Association of Realtors (NAR) explains why it’s helpful right now: “To keep deals from unraveling . . . it allows a seller the opportunity to address any repairs before the For Sale sign even goes up. It also can help avoid surprises like a costly plumbing problem, a failing roof or an outdated electrical panel that could cause financially stretched buyers to bolt before closing .” What’s a Pre-Listing Inspection? It's exactly what it sounds like: a professional home inspection you schedule before your home hits the market. Here’s what it can do for you: Give you time to fix what matters . You’ll know what issues could come up in the buyer’s inspection. So, you’ll have time to take care of them before anyone even walks through the door. Avoid last-minute renegotiations . When buyers uncover unexpected issues after you’re under contract, it opens the door for concessions you may have to make like price drops or repairs, or worse, a canceled deal. A pre-listing inspection helps you stay ahead of those things before they become deal breakers. Show buyers you’re serious . When your home is clean, well-maintained, and already vetted, buyers see that. It builds trust and can help you sell faster with fewer back-and-forth negotiations. The bottom line? A few hundred dollars upfront can save you thousands later. Should Every Seller Do This? Not necessarily. Your real estate agent can help you decide what makes the most sense for your situation, your house, and your market. If you decide to move forward with a pre-listing inspection, your agent will guide you every step of the way. They’ll: Advise on whether to fix or disclose each issue Help you prioritize repairs based on what buyers in your area care about Make sure you understand your local disclosure laws Bottom Line If you want to avoid potential snags in your deal, a pre-listing inspection could be the way to go. Let’s talk about whether a pre-listing inspection is the right move for your house and market. Would you rather find out about a major repair now, when you can handle it on your terms – or after you’re under contract, when the clock is ticking?
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