MOVE IN READY?

“Move in Ready” or “Move Right in” is a common headline on many listings (guilty as charged). But what does that really mean? It may indicate the home, although dated, doesn’t need any major repairs other than cosmetic upgrades. Or in some cases, it means the home has been decked out with new paint, maybe a kitchen/bath remodel, updated flooring, lighting, windows, etc. But in either case, the spending is by no means over once the sale is closed. The down payment and mortgage payments are just the beginning… Affectionately referred to as “the joys of home ownership”… the expenses that come along with furnishing and maintaining a home are worthy of thoughtful consideration when you are deciding on buying a home. This article offers great insight into what Buyers buy after moving in…

WHAT DO HOME BUYERS BUY AFTER MOVING

Source: National Association of Home Builders via CAR.org

Furniture, appliances, and remodeling projects are among the biggest expenses for new homeowners, who spend an average of $10,600 in the first year of home ownership, according to a recent analysis by the National Association of Home Builders. New owners spend an average of $3,778 on furnishings alone, according to NAHB’s analysis. Here are a few common expenditures recent home buyers made:

Living room chairs and tables: $687
Dining room and kitchen furniture: $345
Window coverings: $215
Sofas: $700

Property alterations and repairs (particularly outdoor additions and alterations such as a new driveway, walkway, or fence): $3,729

Appliances (particularly washers and dryers, lawnmowers and other yard equipment, and computer hardware and systems): $3,094

A survey conducted by Home Innovation Research Labs shows that two-thirds of new homes built in 2015 came with no washer or dryer; 36 percent had no refrigerators. Most new homes, however, did come with cooking stoves, ranges, and ovens.

Somewhat unexpectedly, new home buyers spend almost as much ($3,729) as buyers of existing homes ($4,085) and outspend non-moving owners ($2,232) on property alterations and repairs. However, the specific types of remodeling projects are quite different across the groups. As anticipated, buyers of existing homes and non-moving owners spend more on various repairs and replacements. They also outspend new home buyers on kitchen/bathroom addition or remodeling, and purchasing and installing new items such as HVAC, electrical and security systems, paneling, flooring, siding, windows and doors. Average spending of new home buyers on most of these items is close to nothing, suggesting that new home buyers rarely spend on these items during the first year after moving. However, when it comes to outside additions and alterations, including a new driveway, walk, or fence, new home buyers outspend existing home buyers and non-moving owners by far.

Even though, during the first year after closing on the house, home buyers tend to spend on furnishings, appliances, and property alterations considerably more compared to non-moving owners, most of the demand for appliances, furnishings, and remodeling projects in a given year is generated by non-moving home owners, because they outnumber home buyers by such a wide margin.