A higher percentage of ‘as-is’ homes on the market helps increase remodeling industry revenue
Increased competition in the residential real estate market has not only caused home prices to rise, it has enabled many sellers to list their homes “as is.” According to a report by Zillow.com, a leading real estate information and analytics site, there are 12% more fixer-upper homes on the market now than there were five years ago, with the percentage rising even higher among premium-priced homes in hot markets. Many home-buyers immediately renovate these homes upon purchase, leading to a positive uptick in remodeling industry revenue.
Zillow analyzed real estate listings dating back to 2011, looking for keywords such as “fixer-upper,” “TLC” and “needs work” and then comparing the results to overall industry trends in market listings during the same period. What they found was that homes for sale in the upper tier of prices saw a nearly 35 percent increase in “as-is” inventory, while homes at the lower end of the spectrum saw an increase of less than 3 percent. For homes in all price ranges, the overall average increase in “as-is” listings was 12 percent.
The likely reason for this phenomenon is that in many markets, there are more buyers than there are homes for sale. This imbalance of supply versus demand has enabled sellers to stress less about the condition of their homes before putting them on the market, knowing that they will most likely sell in their current state of repair.
Of course, this is good news for the anyone considering a career in the remodeling industry, especially as part of DreamMaker™ Bath and Kitchen. DreamMaker™ offers a further advantage to remodelers compared to the average independent contractor, with our stellar reputation and comprehensive systems and business plan. Our approach enables franchisees to enjoy the highest margins possible on the remodeling work that they do.
DreamMaker™ Bath and Kitchen franchisee Marty Cherrie puts it this way, “Part of the reason I chose DreamMaker™ is that I've been in the home and commercial building industry for about 30 years. A lot of that has been as a developer, but I’d never developed systems for building or doing the work that we were doing. We were, for lack of a better phrase, flying by the seat of our pants.”
“DreamMaker™ has the systems and the vendor relationships that lowered my cost of materials and helped me enjoy higher margins. It was all stuff I couldn’t do on my own.”
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