There is a common theme around the globe: home buyers and renters want brand new or newly renovated homes and are willing to pay a premium for them, often a large premium. It's almost become an obsession. Here are the top reasons we've identified for the new craze:
Time is the last luxury. Enjoying a home immediately is more meaningful to most. Waiting for a renovation or new build is time lost. The time and effort spent on a home build or renovation project is time you can spend on your career making the money to pay for a home, or enjoy with friends and family.
Easy on the finances. In a rising interest rates environment, locking into a rate has value. When you buy a renovation project you need cash or additional financing, which is difficult to obtain, to renovate. One financed lump sum is quicker and easier. Plus, with rising labor and materials costs, anticipated costs for renovation at closing are bound to rise. Most projects go over budget regardless.
Less stress overall. Consumers want the least aggravation. Older systems require more time, effort and money to service, maintain and replace. New and renovated homes are already suited for today's lifestyle needs. Finally, seeing exactly what you're going to get is easier than imagining it.
Thinking about selling? Compass Concierge will front the cost of minor renovations to sell your home faster and for a higher price while giving your potential buyers what they want: a move-in ready home. Learn more here.