There is a new theme surrounding buying in the United States, and Dallas is not immune from it. People are wanting new or newly renovated homes and are willing to pay a premium (and sometimes a very large premium) to get it. At no other time in my real estate career have I seen listings priced so drastically different depending on if they are deemed “move-in ready” versus “a project”. Sorry, Chip and Joanna! 

 

Why is this? Let’s look. Turn out here are a couple of reasons. 

 

1.     Time

Those looking for move-in-ready properties realize that this is the last luxury that we all have. Who wants to wait around to renovate or to build when there is inventory waiting to be closed on and moved into ASAP? Not to mention, decorating and furnishing is the fun part. People get frustrated with waiting around for the permit and design process of a build or renovation. While your furniture may also take a while to arrive, at least you can order it and have a game plan put together quickly. 

 

2.      Costs

With the rising costs associated with both labor and materials, people are finding renovations hard to budget for. Not to mention, a lot of projects are requesting to be fronted in cash. 

 

3.     Interest Rates

We are in the midst of a rising interest rate environment. Although this may be changing with what is happening in our world, people are still itching to lock into a rate before it rises even more.

 

4.     Trends

Most new and renovated homes are designed with how people are living their lives in the present day. This includes open kitchens, outdoor spaces, flex spaces, etc. It is hard to find an older home that has the capacity to accommodate all that we “need” today without extensive reworking and/or adding square footage. 

 

5.     Vision

At the end of the day, most buyers do not have a vision. Buying new or move-in ready is a lot easier to “see” versus having to look past all the issues and design distractions of a project. Instant gratification is key. We are living in 2022, after all.  

 

Honestly, I love the process of renovating and building. Sure, it drives me crazy occasionally, but what doesn’t? Good things come to those who wait, right? On the flip side, I also understand people wanting to move into exactly what they are looking at. With that said, my advice to sellers is to make your property as move-in ready as you possibly can.

Contact me if you’d like to hear more about the Compass Concierge program that loans you the funds to furnish and fix your property up until closing. It is such a game-changer for sellers! 

 

Alison JensenMarch 4, 2022