With many homebuyers choosing to purchase properties in need of renovation, there is a considerable amount of money being spent on renovations. There are certainly advantages to buying a fixer-upper or property that needs a little love and care—but it is important to realize that fixing a home can be costly and time-consuming. Sometimes it is better to purchase a property that has more amenities than you think you will need to save in the long-run.
Costs of Renovations for Homeowners
The cost of renovations for home remodeling can vary considerably based on the repairs being done, but there is data showing the average amount spent by owners in different categories. This data includes:
- In 2016, millennial homeowners spent an average of $26,000 on renovations.
- In the same year, first-time buyers spent an average of $34,000 on renovations.
- Regular homeowners spent an average of $60,000 on renovations in 2016, which was very close to the 2015 average of $59,800.
Those New to Ownership Tend to Spend Less on Renovations
Judging from the data listed above, it is apparent that those who are newer to home ownership are not spending as much on renovations. It is understandable that this would be the case—since those new to home ownership likely do not have as much disposable income as those who have purchased their second or third home.
Consider the Benefits of Buying a Home with Everything You Need
It is possible that many homebuyers do not fully grasp the extensive costs of renovations when they purchase a home. If you are one of those who is unsure if you want a fixer upper or a newer home, it is worth looking more closely at the total costs.
Do you have questions about real estate in the Tri-Cities, WA? Please contact us to learn more.