Modern Buyers Want Design Show Homes
Real estate shows are a big trend right now, and interest rates are low. This is causing young buyers to stretch to mortage their glitsy dream home. Many buyers can't afford to carry a mortgage and pay for a renovation, so properties done up like those on design shows are selling like crazy. Staging has become very popular because sellers realize the difference it makes.
We can all understand wanting a home we can show off to friends and family right away. We have to keep up with all of those gorgeous homes on TV after all! The previous generation seemed to buy more for location, and didn't mind having projects to take on down the road. Of course that was before the real estate market was so competitive, and money could be put away for renovations.
I recently took buyers through a starter home in a great neighbourhood, in great condition, but in need of a new kitchen. It was priced around $900,000 and would cost about $50,000 to put in a kitchen. They felt it needed too much work for their budget, even though the budget was about $1 million. Rather than putting in a kitchen of their choice, it was more affordable to stretch for a more expensive home move-in ready.
Of course it's fun to be able to design your dream home from a fixer-upper, but that's just not a reality for many buyers. I'm not saying that the market for a fixer upper isn't competitive- many buyers will pay good money for a property to gut, sometimes too much money when caught up in bidding wars.
