Due to the current housing market, consumers are buying and selling properties in droves — many of them for the first time. However, a new report shows that, even though they understand the benefits that renovations can bring to a home listing, many lack the resources and know-how to take full advantage of this information.
In fact, real estate company Coldwell Banker found in its latest survey that the majority of U.S. homeowners understand that renovating their home can help boost its value when they do decide to sell. A whopping 89% of respondents who sold their homes within the past three years updated them before doing so.
Homeowners want clarity on renovations that increase the value of their property
Just over 1 in 5 (21%) homeowners plan on selling their home sometime in the next 12 months, with the following being their top reasons for doing so:
- Wanting more space (26%)
- Wanting an upgraded home (23%)
- Being closer to friends or family (20%)
- Wanting to downsize (18%)
And although 91% of current homeowners plan to upgrade their property before listing it, many are unsure where they'll get the cash to do so (28%) — and what projects to spend it on (28%).
Coldwell Banker revealed that younger homeowners had greater trouble coming up with this money than their older counterparts. More specifically, it found that those respondents with money challenges included:
- 34% of Gen Z
- 31% of millennials
- 14% of Gen X
- 4% of baby boomers
Perhaps that's why many are looking for alternative ways to fund these projects — a survey from Modernize indicated that 31% of homeowners looking to renovate their property plan to finance half of the project. Even then, however, one-third of Coldwell Banker's respondents still needed additional repairs after the first round of renovations.
With this in mind, it comes as little surprise that 28% of respondents who made upgrades to their home found the whole process stressful.
Home buyers experience their own set of challenges as well
The Coldwell Banker survey also showed that nearly a quarter (24%) of respondents expect to purchase a home in the next 12 months. Younger buyers are driving this trend, as the report found that this number included:
- 41% of Gen Z
- 40% of millennials
- 23% of Gen X
- 9% of baby boomers
This may be due to more younger consumers looking to settle down in their first home, as a recent Chase survey also discovered that 60% of first-time home buyers plan on purchasing a home in the next 12 months.
However, Coldwell Banker showed that the homebuying process is intimidating for 23% of home buyers, while another 24% of respondents don't have the funds for a down payment on their purchase.
These figures may explain why 23% of homeseekers want an upgraded home — with a newer property, they may expect to spend less in the long-term and have less to worry about during the homebuying process too.
Methodology: The Harris Poll conducted an online survey of 2,037 American adults (ages 18 and up) on behalf of Coldwell Banker from June 22-24, 2021. Of the participants, 1,335 are homeowners and 432 sold a home within the past three years.