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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Home Projects That Boost Value

By KCM • June 14, 2025
Home Projects That Boost Value Whether you’re planning to move soon or not, it’s smart to be strategic about which home projects you take on. Your time, energy, and money matter – and not all upgrades offer the payoff you might expect. As U.S. News Real Estate explains: ". . . not every home renovation project will increase the resale value of a home. Before you invest in a swimming pool or new addition, you should consider whether the project will pay itself off by getting prospective buyers in the door when it’s time to sell. " That’s why, before you pick up a power tool or call a contractor, your first step should be talking to a local agent. Planning Ahead Pays Off If you plan to move relatively soon, you’ll want to get a jump start on your to-do list. And even if moving isn’t on your radar yet, life can change quickly – and a new job, a growing family, or shifting priorities can fast-track your plans. You don’t want to be scrambling to fix up your home if your timeline changes. Smart updates now = fewer headaches later. By planning ahead, you can spread out the work over time, which is easier on your wallet and your stress levels. Plus, you’ll get to enjoy the upgrades while you’re still living there and have the peace of mind your house is ready to impress when it's time to list. What Buyers Want (and What’s Actually Worth Doing) If you’re not sure which projects are worth your time and money – here's some information that can help. A study from the National Association of Realtors (NAR) shows which upgrades typically offer the best return on your investment (ROI) (see graph below): If an update you're already thinking about overlaps with those high-ROI upgrades, great. Odds are it'll improve your quality of life now and your home’s value later. But don’t take this list as law. This is based on national data and is the sort of thing that's going to vary based on what’s most sought-after where you live. That’s where your agent comes in. As an article from Ramsey Solutions says: “ The best way to gauge what you can expect in terms of resale value on home improvements—especially if you’re planning to sell soon—is to talk to a real estate agent who is an expert in your market. They’re sure to know the local trends, and they can show you how other homes with the features you want to add are selling. That way, you can make an educated decision before you start ordering lumber and knocking down walls.” You'll just want to make sure you don't overdo it. Too many high-end updates can make your home the priciest in the neighborhood. That might sound great, but it can actually turn buyers away if it's outside their expected price range for the area. The right agent will help you make smart updates that buyers will love, without going overboard. Whether the project is big or small, it pays to be strategic. And an agent is a key piece of that strategy. Bottom Line It doesn’t matter whether you plan to move soon or not, it can still pay off to make strategic updates that’ll help you love your home now and stand out later. What’s one upgrade you’ve been thinking about – and wondering if it’s worth it? Let’s make sure it’ll pay off when the time comes.

Why You’ll Want a Home Inspection

By KCM • June 13, 2025
Once your offer is accepted, an inspector will assess the condition of the house, including things like the roof, foundation, plumbing, and more. That information is incredibly important and paves the way for you to re-negotiate with the seller, as needed. So, you don’t want to skip this step. An inspection is your chance to avoid costly headaches and get peace of mind. Let’s connect to talk about other ways to make your offer stand out.

Housing Market Forecasts for the Second Half of the Year

By KCM • June 12, 2025
Housing Market Forecasts for the Second Half of the Year From rising home prices to mortgage rate swings, the housing market has left a lot of people wondering what’s next – and whether now is really the right time to move. There is one place you can turn to for answers you want the most. And that’s the experts. Leading housing experts are starting to release their projections for the rest of the year. These insights will give you clarity – and a little more optimism than you might expect. Business Insider sums up the forecasts (and why they’re good news for you): “As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.” Let’s break it down. 1. Mortgage Rates Should Come Down (Slightly) While a major drop isn’t on the table, forecasters are calling for a modest decline in rates in the months ahead as the economic outlook becomes more certain. Based on the information we have right now, here’s a look at where they say rates should be by year-end (see graph below): Even this slight decrease is a welcome change. A seemingly small decline can still help bring down your future mortgage payment and give you a bit more breathing room in your budget. Just remember, everything from inflation to employment and broader economic shifts will have an impact on where rates go from here. So, don’t try to time the market. And do expect some volatility along the way. 2. Inventory Will Continue To Grow Inventory has already improved a lot this year. A big portion of the growth the market has already seen is because homeowners are getting tired of sitting on the sidelines. They’ve tried the wait and see approach with rates, and it hasn’t really paid off. And at a certain point, you need to move no matter what the market is doing. This is one reason more homes have been listed lately. And experts say that should continue. As Lance Lambert, Co-founder of ResiClub, says: “The fact that inventory is rising year-over-year . . . strongly suggests that national active housing inventory for sale is likely to end the year higher. ” If rate forecasts pan out as the experts say, that could be enough to tip some more sellers off the fence and back into the market – giving you even more options for your move. 3. Home Prices Are Moderating As more homes hit the market, there will also be less upward pressure on home prices . Expert forecasts are still calling for growth, but the pace of that growth is slowing down as inventory climbs. The average of all 7 forecasts shows prices will rise about 2% this year (see graph below): That means you could finally get a little bit of relief from rapidly rising home prices . When you combine the forecast for healthier price growth with projections for slightly lower mortgage rates, that could mean more buying power in the months ahead. Keep in mind, though, the housing market is hyper-local. So, this is going to vary by area. Some markets will see prices climbing higher. And some may even see prices dip a little if inventory is up significantly in that location. So, lean on a local agent for insights into what’s happening in your area. Bottom Line So, if you want or need to move this year, know that the experts say things should start looking up. Let’s connect so you can take advantage of any market shifts that work in your favor.
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