Despite Hot Market, Sellers Plan Big Updates Before Listing

Buyers are willing to pay ever-higher prices, and homes are snapped up soon after they’re listed — you might think a seller in that environment would just sit back and watch the offers roll in.

However, that is not the case with U.S. homeowners.

Most homeowners who plan to sell their current home in the next 12 months (86%) intend to spend money on major repairs or renovations to make their home more appealing to potential buyers before selling it, according to a new NerdWallet survey conducted online by The Harris Poll. Nearly 1 in 3 homeowners who plan to sell in the next 12 months (32%) intend to spend $10,000 or more on these repairs or renovations.

This urge to update is set against the backdrop of a hot real estate market: According to a February 2022 report from the National Association of Realtors, home prices have risen by nearly 30% since 2019, while inventory has fallen 57%.

Note: Throughout this report, "home sellers" refers to homeowners who plan to sell their current home in the next 12 months.

Key Findings

• Nearly 1 in 10 U.S. homeowners (9%) plan to sell their home in the next 12 months.

  • This is consistent with our March 2021 study, when also 9% said they plan to sell within the next 12 months.

• Most home sellers (86%) say they plan to spend money on major repairs or renovations to make their home more appealing to potential buyers prior to selling it.

  • 32% plan to spend $10,000 or more.

  • 9% plan to spend between $5,000 and $9,999.

  • 5% plan to spend between $2,000 and $4,999.

Homeowner interest in selling soon is holding steady

Almost 1 in 10 homeowners (9%) plan to sell their current home in the next 12 months, matching the results from our March 2021 study (9%).

Selling your home usually means moving to a new one — specifically, one that’s a better match for your needs. The top motivation for home sellers to list their current home is more space (35%).

Seeking more space could be tied to an age-old need for extra square footage: kids.

• 15% of homeowners who are parents of children under 18 are more likely to plan to sell their current home within the next 12 months than homeowners who aren’t (7%).

• 39% of homeowners who are parents of children under 18 are more likely to plan to sell their current home within the next two years than homeowners who aren’t (17%).

• 54% of homeowners who are parents of children under 18 are more likely to plan to sell their current home within the next five years than homeowners who aren’t (31%).