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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How To Make Sure Your Sale Crosses the Finish Line

By KCM • December 12, 2025
How To Make Sure Your Sale Crosses the Finish Line If there was one simple step that could help make your home sale a seamless process, wouldn't you want to know about it? There’s a lot that happens from the time your house goes under contract to closing day. And a few things still have to go right for the deal to go through. But here’s what a lot of sellers may not know. There's one part of the process where some homeowners are hitting a road bump that’s causing buyers to back out these days. But don’t worry. The majority of these snags are completely avoidable, especially when you understand what’s causing them and how to be proactive. That’s where a great agent (and a little prep) can make all the difference. What’s Causing Some Buyers To Back Out The latest data from Redfin says 15% of pending home sales are falling through . And that’s not wildly higher than the 12% norm from 2017-2019. But it is an increase. That means roughly 1 in 7 deals today don’t make it to the closing table. But, at the same time, 6 out of 7 do. So, the majority of sellers never face this problem – and odds are, you won’t either. But you can help make it even less likely if you know how to get ahead. You might assume the main reason buyers are backing out today is financing. But that’s actually not the case. The most common deal breaker today, by far, is inspection and repair issues (see graph below): Here’s why that’s a sticking point for buyers right now: Buyers are already stretched thin from high prices and challenging mortgage rates, so they don’t have the appetite (or budget) for unexpected repairs. If they’re going to spend all that money, they want to get something that’s move-in ready. They don’t want to take on another high-cost project themselves. They have more homes to choose from, so if yours seems like a hassle or if you’re not willing to fix something, they can just move on. The sellers with the best agents have heard about this shift and they’re doing what they can to go in prepared. Enter the pre-listing inspection. What’s a Pre-Listing Inspection? It’s exactly what it sounds like. It’s a professional home inspection you schedule before your home hits the market. And while it’s not required, the National Association of Realtors (NAR) explains why it could be a valuable step for some sellers 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 .” Think of it as a way to avoid future headaches. You’ll know what issues could pop up during the buyer’s inspection – and you’ll have time to fix them or decide what to disclose before you put your house on the market. This way, when the buyer’s inspector walks in, you’re ready. No surprises. No last-minute panic. No deal on the line. Is It Worth It? Generally speaking, a pre-listing inspection costs just a few hundred dollars. So, it’s not a big expense. And the information it gives you is invaluable. But before you make that investment, talk to your local agent. In some markets, it may not be worth it. And in others, it may be the best move you can make. It all depends on what’s happening where you are and what’s working for other local sellers. If your agent recommends getting one, they’ll also: Help you decide which issues to fix Prioritize repairs based on what buyers in your area are focusing on Connect you with trusted professionals to get the work done Ensure you understand local disclosure laws That small step could save your deal (and your timeline). Bottom Line So, if there was one simple step that could help make your home sale go according to plan, would you do it? If you’d rather deal with surprises on your terms (not with the clock ticking under contract), let’s talk about whether a pre-listing inspection makes sense for your house. It may be worth it so you can hit the market confident, prepared, and in control.

The 3 Housing Market Questions Coming Up at Every Gathering This Season

By KCM • December 10, 2025
The 3 Housing Market Questions Coming Up at Every Gathering This Season Whether it’s at a family gathering, your company party, or catching up with friends over the holidays, the housing market always finds its way into the conversation. Here are the top three questions on a lot of people’s minds this season, and straightforward answers to help you feel more confident about the market. 1. “Will I even be able to find a home if I want to move?” Yes, more than you could a year or two ago. The number of homes for sale has been rising over the past few years. According to data from Realtor.com, there have been more than one million homes on the market for six straight months, something that hasn’t happened since 2019 (see graph below): That means two things: Buyers have more options. Sellers have more places they can move to next. Many homeowners who held off are realizing the shelves aren’t bare anymore. So, if you hit pause on your home search last year because nothing fit your needs, it may be worth another look. With more homes on the market now, you’re not competing for the same handful of listings like you were a couple of years ago. And because there’s a bit more to choose from, homes aren’t disappearing the minute they hit the market. That gives buyers more space to breathe, more options to compare, and a little more time to make a confident decision. 2. “Will I ever be able to afford a house?” Affordability is starting to improve. Finally. It’s been a tough few years for buyers. But this year brought some much-needed good news: Mortgage rates have been easing. Home price growth has been moderating. That adds up to a monthly mortgage payment that’s hundreds of dollars lower than it would have been just a few months ago (see graph below): Buying still isn’t easy, but the numbers are starting to improve. For a lot of people, that means buying a home is becoming a more realistic goal again. 3. “Should I wait for prices to come down?” A lot of people worry that the housing market is about to crash, but the data doesn’t point in that direction. Yes, the number of homes for sale has been rising, but it’s still nowhere near the level needed for prices to fall significantly on a national scale. On top of that, homeowners today have a lot of equity and are in a much stronger financial position than they were back in 2008. Of course, every local market is a little different. Some areas are still seeing prices climb, while others that saw huge spikes a few years ago are leveling off or seeing small corrections. But overall, the national picture is clear: experts surveyed by Fannie Mae project home prices will keep rising, just at a slower, more normal pace (see graph below): That’s why waiting for a major price drop to get a deal isn’t a very strategic plan. History shows the same thing over and over: people who spend time in the market tend to build the most long-term wealth, not the people who try to time the market perfectly. Bottom Line Talk about the housing market can feel loud and confusing, especially when you’re hearing so many different takes. If you want to understand what these trends mean for your goals, let’s connect and walk through it together.

Thought the Market Passed You By? Think Again.

By KCM • December 9, 2025
Thought the Market Passed You By? Think Again. If you stepped back from your home search over the past few years, you’re not alone – and you’re definitely not out of options. In fact, now might be the ideal time to take another look. With more homes to choose from, prices leveling off in many areas, and mortgage rates easing, today’s market is offering something you haven’t had in a while: options. Experts agree, buyers are in a better spot right now than they’ve been in quite a long time. Here’s what they have to say. Affordability Is Finally Improving Lisa Sturtevant, Chief Economist at Bright MLS, says affordability is finally starting to turn the corner: “Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.” Mortgage rates have eased from their recent highs, price growth has slowed, and that one-two combo is making homes more affordable than they’ve been in months. There Are More Homes on The Market And a big reason prices are easing is because there are more homes on the market. According to the latest from Realtor.com, there are 17% more homes for sale today than there were at this time last year. That means more options, less competition with other buyers, and a chance to find the space that actually works for you. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), shares : “Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price. Current inventory is at its highest since May 2020, during the COVID lockdown.” Take a look at the numbers. As Yun notes, inventory is up everywhere. Compared to this time last year, every region of the country has more homes on the market than at this time last year (see graph below): That translates to more homes to choose from, whether you’re looking for a bigger backyard, a shorter commute, or finally ditching your rental. But not all markets are the same… When you compare current inventory growth to pre-pandemic norms (2017–2019), the picture changes a bit, depending on where you are (see graph below): The green bars show where inventory has fully recovered (and even grown above pre-pandemic levels) in the South and the West. Supply, however, is still tighter in the Northeast and Midwest, as shown in the red bars, where inventory is still below normal. And here’s why that’s still a win everywhere. When you step back and look at the bigger picture, with inventory up in every region, that means more choices everywhere, even if some areas have more homes for sale than others. And with fewer buyers in the market and more homes for sale, sellers are willing to negotiate to get a deal done. All of that adds up to a win for today’s buyers. And it’s also why working with a local expert really makes a difference. What’s happening in your zip code or neighborhood might look different than the national or regional trend. But the overall takeaway is clear: with more homes on the market, buyers have more leverage than they did a year or more ago. So, if you stepped away from your search because things felt too competitive, too pricey, you were worried about finding a home, or it was all just too much to process, this could be your moment to take another look. And if you’re not quite ready to go all in, that’s okay too. You can start by planning ahead. That means working with a trusted agent who can help you break down your budget, narrow your search, and make sure you're prepped and ready when the right home hits the market. Bottom Line Want to know what’s happening in our area? Let’s have a conversation so you can get a custom overview of what’s available right now and learn how to be ready when the timing is right for you. Because this isn’t 2021. This isn’t even 2023 or 2024. This is a new market – and you might be surprised by what you find.
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