Report: Buyers Choosing Remodeled Homes Over Fixer-Uppers

While many homebuyers have historically opted for a fixer-upper in order to find a home in their price range, according to new research, that tide may be turning.

According to a recent analysis from Zillow®, today's buyers are willing to pay nearly 4% more than expected for a home that is already remodeled—or an additional $13,194 on a typical U.S. home. That's the highest sale-price premium of all 359 listing keywords Zillow analyzed across more than 2 million homes listed for sale in 2024. 

Remodeled listings on Zillow get 26% more daily saves and are shared with a shopping partner 30% more often than similar homes that are not remodeled, according to the report. These metrics of demand suggest shoppers are more serious about these listings, and more likely to take the next steps in the home-buying process.

It might seem intuitive that remodeled homes would sell for more, but that hasn't always been the case. Last year's Zillow analysis of listing keywords found the term "remodeled" only contributed to a 0.8% sale price premium. And prior to the pandemic, Zillow research found listings that mentioned "fixer," "TLC," "needs work" or "good bones" were more likely to sell than listings without those terms. 

Once considered a way to get a great deal on a home for buyers on a strict budget, fixer-uppers are now becoming an option reserved for cash-flush buyers who want to customize every inch of their space. Zillow research finds a "fixer-upper" sells for 7.3% less than a similar home, the largest discount in three years. A home that "needs work" or "TLC" sells for around 8% less than expected. That adds up to more than $28,000 on a typical U.S. home, a meaningful deal on the purchase price. But add in the rising costs of renovations, which have climbed with inflation and high interest rates, and those cost savings can quickly vanish. 

America's love affair with the fixer-upper began in the mid-2010s, Zillow explains. As home prices recovered from the Great Recession and began to rapidly increase, first-time millennial buyers sought out more affordable options, choosing homes that needed work rather than move-in-ready properties. Dramatic before-and-after renovation TV shows and the DIY movement took off, inspiring many others to take on their own fixer-upper. Skyrocketing home values meant that homeowners could afford a few mishaps or budget overruns and still see huge equity gains while their homes were appreciating so rapidly. 

Home-value appreciation has since come back down to earth. In 2024, homes nationwide appreciated 2.6%, and Zillow is forecasting 2.9% home value growth in 2025. As buyers begin to gain the upper hand in more parts of the country, sellers can no longer be assured that a costly gut renovation is an investment that will quickly pay off. 

Nearly 30% of all for-sale listings on Zillow are now described as "renovated" (28%). This comes after the pandemic ignited a renovation boom, fueled by the rise of remote work, the unprecedented growth in home equity and an aging housing stock. These newly renovated homes are now beginning to hit the market, just in time for eager buyers looking for move-in-ready properties during the spring home shopping season. 

Reprinted with permission from RISMedia. ©2025. All rights reserved.

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