While the vast majority of homebuyers seek properties that are move-in ready, new data shows that the typical for-sale home could need close to $30,000 in repairs. Meanwhile, according to survey from Thumbtack and Zillow, the average millennial homebuyer expects to pay just between $10,000 to $15,000 in repairs upon closing escrow.
“This research suggests first-time homebuyers typically underestimate the costs of the unsexy projects they may have to tackle before they even more in,” said Zillow Home Trends Expert Amanda Pendleton. “That sticker shock may be increasingly common in a competitive market where buyers are dropping inspection contingencies as a strategy to win a bidding war.”
Among the priciest repairs new home owners face is fixing a broken down HVAC system, costing on average $3,615.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.