Is Paying More for an Updated Home Worth It? Here’s How to Decide

Inner Circle • March 11, 2025

If money were no object, would you Fix up this house?

If you’re in the market to buy a home, you probably want to negotiate the best price possible. But in today’s market, getting the best deal isn’t just about negotiating the lowest price—it’s about making a smart financial decision that balances cost, convenience, and long-term value.

Even if you’ve just started your home search, you’ve probably noticed that updated homes are often difficult to find and sell faster and at higher prices than homes that need some sprucing up. But how much more may not be so obvious…

Well, according to a recent press release, homes that are “remodeled” currently sell for nearly 4% more than expected, as opposed to last year when they only contributed to a 0.8% sale price premium.

This demand for updated homes signals a shift from the past when buyers were more willing to take on fixer-uppers. But does that mean paying a premium for a move-in-ready home is the best choice for you? Not always. The key is understanding when paying a premium for an updated home is worth every penny, and when rolling up your sleeves and tackling a few projects might be the better move.

The Math Behind Move-In-Ready Homes: Why Paying More Pays Off

For many buyers, choosing a home that needs work was once an appealing way to get more house for the money. But with today’s financing rates and inflation driving up renovation costs, that strategy isn’t always as cost-effective as it used to be.

The press release cited above also mentioned that fixer-uppers now sell for 7.3% less than comparable move-in-ready homes, which is the largest discount in three years. On the surface, that sounds like an opportunity. But the reality is that rising material and labor costs can quickly erase those savings. A kitchen remodel alone can easily exceed $50,000, and unexpected repairs often push budgets even higher. In some cases, paying a little more for a home that’s already updated can actually be the more affordable long-term option.

That doesn’t mean fixer-uppers are off the table. But if you’re considering one, it’s important to approach it with a realistic renovation budget, and an understanding that costs can change quickly. The home that seems like a better deal could become a financial headache if renovation prices climb beyond your expectations.

From an investment perspective, the financial math behind home improvements rarely favors the buyer who tackles renovations themselves. According to the 2024 Cost vs. Value Report, most remodeling projects don’t even provide a dollar-for-dollar return, let alone a profit. While minor updates—like replacing your garage door or front door—often offer solid ROI, big-ticket renovations like full kitchen overhauls or high-end bathroom remodels rarely recoup their full cost in resale value. And let’s be honest, when people think “updated,” new kitchens and bathrooms are the types of things buyers envision, not a couple of doors.

That’s one reason why many buyers are willing to pay more upfront. Instead of dealing with renovation stress, unexpected costs, and the hassle of living in a construction zone, they’re choosing the convenience of a move-in-ready home. And with the added bonus of being able to finance that cost over 30 years, the monthly payment difference might not be as significant as it seems at first glance, and likely more appealing than having to dip into the savings account or rack up the credit card bill.

When Paying More Makes Sense (And When It Doesn’t)

So, should you be willing to stretch your budget for an updated home? It depends. Here are a few things to consider:

When it makes sense to pay more:

  • You don’t have the time, patience, or expertise for renovations. Even minor projects can take months and often go over budget.
  • You want cost predictability. With an updated home, you’re not rolling the dice on how much renovations will actually cost.
  • The updates are worth more than the premium you’re paying. If you can buy an updated house for less than it would cost you to update any other options available to you, it’s likely a smart financial decision.
  • There just aren’t a lot of updated homes that come on the market. If renovated homes are few and far between, paying more for the opportunity to buy one can be money well-spent.

When buying a home that needs work might be the better move:

  • You have renovation experience or trusted contractors. If you’re handy and able to do the work yourself, or you’re able to hire contractors at a reasonable price, you may be able to save significantly.
  • You’re comfortable living through renovations. Some projects, like painting or flooring, can be done room-by-room over time, making it easier to live around. But if you need to do major kitchen or bathroom renovations, or gut the entire house, you’ll either need to be comfortable living through the chaos, or have a place to stay in the meantime.
  • You’re in a market where fixer-upper discounts are larger. In some areas, the price gap between updated and non-updated homes makes renovations a more viable option. If you can get a house that needs work at a substantial discount, and do the work for less than it would cost to buy an updated one, it might be worth the effort.
  • There just aren’t a lot of updated homes that come on the market. If renovated homes are few and far between, and you’re having trouble getting your offers accepted due to stiff competition for the few updated homes, it might make sense to buy one that needs work.

Every buyer’s situation is different, and there are cases where buying a home that needs work can still be a good investment. The key is to go in with clear expectations and a solid understanding of the true costs involved.

Working with a great real estate agent can help you evaluate your options and make a decision that aligns with your goals and budget. They can:

  • Help you compare updated and fixer-upper homes in your target market to see where the best opportunities lie.
  • Connect you with contractors and help you gather renovation cost estimates so you know what to expect before making an offer.
  • Help craft offers that give you a competitive advantage without overpaying.

The Takeaway:

Paying more for a move-in-ready home might seem like a splurge, but in reality, it’s often the smartest financial move. The best deal isn’t always about getting the lowest price—it’s about getting the best value.
If you’re looking at a fixer-upper, make sure the discount justifies the work and expense required. If you’re leaning toward a move-in-ready home, know that you’re not just paying for convenience—you’re paying for financial predictability and peace of mind.
No matter which route you choose, the right strategy can help you make a decision that stands the test of time. And that’s where working with an experienced real estate agent can make all the difference.


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Is It Time To Put Your House Back on the Market?

By KCM • March 24, 2025
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Is Living in an HOA Right for You? Take This Quiz to Find Out!

By Inner Circle • March 19, 2025
If you’re thinking about moving, you might want to dedicate some of that thought to how you feel about buying a place in a homeowners’ association (HOA). They’re becoming more and more common, so there’s a good chance the house of your dreams may be smack dab in the middle of one. Love them or hate them, HOAs come with rules, fees, and a unique lifestyle that isn’t for everyone. Take this quiz to see if HOA living is your perfect match or a recipe for frustration! The Rules: For each question, pick the answer that best describes you and note the point value. At the end, total up your score and check your results! 1) How do you feel about uniformity in a neighborhood? I love it! Matching mailboxes and identical landscaping bring me peace. (+10) I don’t care what my neighbors do. (Within reason, of course…) (+5) I’m considering a pink front door and a flock of yard flamingos. (+1) 2) How do you feel about paying HOA maintenance fees? It’s worth every penny to not have to do yard work. (+10) I don’t love the extra cost, but I’ll enjoy having less to worry about. (+5) I can either do things myself, or hire someone to do it for less money. (+1) 3) Your neighbor’s holiday lights are still up (but not lit) in June. How do you react? Wouldn’t happen. I’d have the HOA on speed dial and call on January 1st. (+10) As long as they’re not being lit, I’ll survive. (+5) Sounds like my kind of people! (+1) 4) You want to put up a basketball hoop in your driveway. What do you do? Check the rules and get written approval before even buying a basketball. (+10) Put it up and deal with the HOA if they say something. (+5) Install it and paint a three-point line on the street while I’m at it. (+1) 5) Your HOA sends you a violation notice because your trash cans were left out an hour too long. Your response? Apologize and pay a fine, even if they didn’t fine you. Rules are rules. (+10) Grumble but move them and appreciate the fact that they didn’t fine me. (+5) Throw some leftover fish in the can and leave them out longer out of spite. (+1) 6) How do you feel about community events, like chili cook-offs and movie nights? Can we make it a weekly event?! (+10) Might go, might not. Depends on my mood. (+5) Hard pass. I barely want to see them walking out to their car in the morning. (+1) 7) What’s your ideal approach to home improvement? Submit plans to the HOA, wait for approval, then proceed carefully. (+10) If it’s outside, I’ll check the rules first. Inside is none of their business. (+5) I barely want to file permits with the building department in town. (+1) 8) You have too much junk in your garage and want to park your car in the street overnight. Thoughts? Garages are for cars, not junk. Would never be an issue for me. (+10) It’s just for a night or two, so I’ll just do it and hope I don’t get fined. (+5) They’re lucky I don’t just park it on my front lawn. (+1) 9) How do you feel about security patrols and gated entrances? Love it! It keeps me and all of my neighbors safe. (+10) It’s fine, but I don’t need it. I could just get a security system installed. (+5) My friends shouldn’t need a background check to visit me. (+1) 10) How do you feel about neighborhood meetings? I’ll attend every one and take detailed notes. (+10) If I have time, I’ll go. If not, oh well. (+5) I avoid them at all costs. I’m probably a topic on their agenda. (+1) Your Results: 80-100 points: You were born for HOA life! You love structure, rules, and well-maintained neighborhoods. Enjoy your perfectly manicured community and don’t forget to remind your neighbor that their lawn is exactly 0.2 inches too long. 40-79 points: You could live in an HOA, but it wouldn’t be your dream. Some rules make sense, but others might test your patience. As long as the benefits outweigh the annoyances, you’ll survive. 10-39 points: You and an HOA would mix about as well as oil and water. The idea of asking permission to paint your shutters makes your skin crawl, and you’d rather be fined than conform. A neighborhood with no HOA (or an underground resistance movement) is more your speed.

Buying Your First Home? It’s Okay To Feel Nervous

By KCM • March 15, 2025
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