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State of Repair: Average Home Repairs Budget Increases 51% Year Over Year

Buying & Selling
Buying & Selling
State of Repair: Average Home Repairs Budget Increases 51% Year Over Year

With the pendulum now swinging back to buyers after months of being on the seller’s side, PunchListUSA finds that more and more work is being completed inside the sales transaction.

In fact, our latest data report finds that our average job size’s budget has gone up 51% from August/September 2022 compared to the same time last year, from roughly $2,537 per job in 2021 to $3,831 in 2022.

The findings come from work orders generated from over 26K estimates through the PunchListUSA proprietary technology platform and demonstrate that sellers are now doing more pre-listing in order to get their homes ready for sale. And it makes sense for sellers to do this – in fact, data from our partners at the Association of REALTORS (NAR) indicates that homes are staying on the market longer – 20% longer just from July to August, for example. Many sellers now need to make those home repairs in order to close a transaction.

Here’s what else PunchListUSA is seeing in the current buyers’ market:

Over longer periods of time, the average work order size is increasing

In 2021 up until late September, the average work order size was $2,727. That work order size has increased 37% to roughly $3,729 in 2022 YTD. This is partly due to home inspections once again becoming a requirement for sellers to complete, and partly due to the types of renovations sellers are undertaking to get homes market ready.

Across the board, we’re seeing the following trends taking place pre-listing: major system repairs being made, kitchens that are older than 15 years getting entirely redone, and fewer fixer-uppers entering the market. This is all very typical of a buyers’ market – homebuyers are seeking more move-in ready options as opposed to putting an offer in on a house that requires a lot of work after closing.

The number of home repair estimates in September 2022 versus September 2021 increased over 100%

Over the last 18 months, home sellers were getting multiple offers on every property listing. According to Zillow, in 2020 homes spent an average of just 25 days on the market before going under contract – and at this time last year, NAR found that average had shortened to only 18 days. Homebuyers often had no due diligence period whatsoever to get a home inspection completed before the seller could go with another offer. Now, the market has softened, and that due diligence period is becoming much more available to buyers – and they have the power to walk away if the home repairs aren’t made.

There’s an increased demand for home repair price transparency

There’s a major benefit to using home repair estimates as a tool in the homebuying process. According to our data, new home inspection reports in September 2022 versus September 2021 increased by nearly 200%. That’s exactly why PunchListUSA is partnering with NAR and the 1.5+ million REALTORS on its platform: to provide instant answers that empower its buyers, remove risk of buyer’s remorse or deals falling through, and save time and stress in the closing process.

To get a free personalized estimate, or simply to learn more about our partnership with NAR, check out https://www.punchlistusa.com/nar/.

Types of repairs we see most often:

What can sellers do to stay ahead in a buyers’ market?

If you’re preparing to sell your home, it’s best to take care of the big repairs and renovations BEFORE listing. Here are some areas we recommend addressing before listing:

  • A small roof repair eliminates buyer concerns about a potentially large replacement or past leaks.
  • A serviced HVAC system provides confidence that there will be no imminent and large repairs or replacements.
  • Replacing old or failing appliances not only eliminates post-inspection concessions, but it boosts your home’s appeal.

For more information, please visit https://punchlistusa.com/.

 

 

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