Renovation homes cost 45% less than comparable turnkey homes: study

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Buying a home that needs a little TLC could save you a considerable amount on your next real estate purchase.

The median cost of a home to renovate in the United States is $225,000.

That’s 45% cheaper than turnkey homes of the same size and location, according to Porch, an online home improvement website that connects homeowners and contractors.

Porch analyzed home listing prices on Redfin, a full-service real estate agency, to determine median costs for homes in need of repair and turnkey homes.

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The current median upper fixer cost is nearly 20% lower than what Porch observed in 2021, which was pegged at $280,000.

However, homes for renovation were still cheaper than turnkey homes in both years.

Homes for renovation are defined as properties in need of repairs, while turnkey homes are defined as properties that have already been renovated and are ready to move into. (iStock/iStock)

While homebuyers realize significant savings when buying homes to renovate, they have to spend money and time (and sometimes endure a lot of aggravation) on renovations and repairs that can run into the thousands of dollars. .

Porch cited comprehensive structural skeleton and foundation renovation estimates from RemodelingCalculator.org and found that median repair costs for a certain project would be around $130 per square foot.

This number would be 15% higher on average than turnkey homes of the same size in similar locations.

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Porch’s updated Restorative Study found that only 1% of U.S. real estate listings were classified as restorative in 2022 so far.

The contractor adds tiles to the floor

Cost estimates from RemodelingCalculator.org indicate that a full 350 square foot laminate floor remodel could cost anywhere from $1,464 to $2,056 with basic materials. (iStock/iStock)

Citing data from Redfin, homebuyers are more likely to find a repairman in Mississippi, where 4.73% of homes are considered repairmen; Maine, where 4.72% of homes are considered homes for renovation; and Louisiana, where 3.64% of homes are considered homes for renovation.

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Alaska (2.72%), Arkansas (2.72%), Hawaii (2.5%), Indiana (2.4%), Vermont (2.34%) and California ( 2.3%). %).

Person installs new roof tiles

Cost estimates from RemodelingCalculator.org indicate that a complete renovation of a 1,600 square foot asphalt roof and requiring a single layer of tearing could cost between $5,312 and $7,460 with basic materials. (iStock/iStock)

Teleprinter Security Last To change To change %
PRCH PORCH GROUP INC. 2.77 -0.08 -2.81%
RDFN REDFIN CORP. 9.50 -0.21 -2.16%

The states in which homebuyers are having a harder time finding a mansion are Utah, Nevada, Nebraska, Iowa, Minnesota, Wisconsin, Tennessee, Kentucky, North Carolina, South Carolina, Virginia and Massachusetts – all of which have a higher percentage of fixative less than 1%.

In May 2022, the median home sale price was $430,982, according to Redfin’s latest Housing Market Snapshot.

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The real estate brokerage found its reported median to be a 15% increase from last year.

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