The rewards of remodeling

We love it when the data we read directly backs up what we’re seeing in our day-to-day business. 

In our second story, we share the results of an NAR survey which shows that 56% of buyers say it’s “very important” that a home doesn’t need repairs. That is one big reason why renovations are up $183 billion compared to five years ago, and why we see so many clients in search of move-in ready properties.

Below, we list out the features that attracted buyers and resulted in the biggest ROI for sellers. This is a great example of data to share with your clients, no matter where they are in the market right now!

– James and David

Small uptick in home sales

While existing-home sales rose 4.2% month-over-month in February, that modest monthly gain masks a broader slowdown. Sales were down 1.2% compared to February 2024. If the current pace holds, 2025 will end with roughly 1 million fewer sales than a typical pre-pandemic year, according to ResiClub’s analysis of NAR data. Here’s what else ResiClub reports about home sales this year:

• Existing home sales are below pre-pandemic 2019 levels in every major metro area housing market except Virginia Beach, VA, and Louisville, KY, 

• The number of new listings in March has exceeded the number of new listings in both 2023 and 2024, but it’s below pre-pandemic norms.

• Increased new listings haven’t translated into new home sales so far 

• Mortgage purchase applications have long served as a leading indicator for existing-home sales. In the early months of 2025, applications have inched up slightly, but overall activity remains subdued, signaling continued caution among buyers.

Our take

All the usual signals point to a lukewarm housing market for 2025 – mortgage purchase applications, new listings, year-over-year trends. But keep in mind that all these observations are based off February activity i.e. pre-tariff announcements. The impact of the tariffs hasn't shown up in the numbers yet, and it could shift buyer sentiment or affordability in the months ahead. March sales data drops on Thursday, April 24th, but we’ll likely be reading the tea leaves well into summer.

Renovations that attract buyers and maximize ROI for sellers

Homeowners spent approximately $603 billion on renovations in 2024, $183 billion more than in 2020. That surprising stat comes from a report recently released by the National Association of Realtors and the National Association of the Remodeling Industry. While most buyers don’t want a fixer-upper, 56% of buyers saying it was “very important” that a home that didn’t require repairs. Here’s a look at which renovations had the biggest impact:

• Upgrades buyers want the most:

  • Kitchen upgrades – 48% 

  • New roofing – 43%

  • Bathroom renovations – 35% 

  • New interior paint – 32%

  • Top-to-bottom kitchen renovations – 26%

• Renovations that had the biggest ROI for home sellers:

  • New front doors – 90%

  • Closet renovations – 83%

  • New vinyl windows – 74%

  • New wood windows – 71%

  • Basement conversion to living area – 71%

Our take

These numbers confirm what we’ve seen on the ground: buyers are paying close attention to whether homes are fixer-uppers or move-in-ready. The latter commands more interest, and in some cases, stronger offers. For sellers, even modest upgrades like a new front door or a fresh coat of paint can have an outsized impact. For agents, these stats are powerful tools. They can help set expectations during listing consultations. If your sellers are on the fence about making improvements, this kind of data can help them see the potential return and understand buyer psychology more clearly.

Zip codes where home prices have plummeted

A new analysis of home price data from Realtor.com pinpoints the zip codes that have seen the steepest home price declines over the past 12 months. In eight zip codes, prices have declined by a whopping 25%. As you can see below, these sharp drops aren’t limited to one part of the country; they’re happening coast to coast, in markets large and small.

Here are the top 10 markets by zip codes where home prices have fallen the most since 2024:

1. Spotswood, NJ (08884): -25%

2. South Elgin, IL (60177): -25%

3. Carlsbad, CA (92009): -25%

4. Raleigh, NC (27615): -25%

5. Tomah, WI (54660): -25%

6. DeQuincy, LA (70633): -25%

7. North Miami Beach, FL (33179): -25%

8. San Jose, CA (95110): -25%

9. York, ME (03909): -24.9%

10. Schenectady, NY (12309): -24.9%

Our take

This is an eye-opening list. We’re not talking about obscure or economically distressed markets: we’re seeing steep price drops in well-heeled, high-demand areas like Carlsbad, Raleigh, and North Miami Beach. This shows that no market is entirely insulated from price corrections. What’s driving these drops? In some cases, inventory has climbed, increasing competition among sellers. In others, markets that saw sharp price appreciation during the pandemic are now cooling off. Even areas that had been relatively stable are showing signs of adjustment. If you're working in or near these zip codes, it may be time to revisit your comps and prep sellers for a more price-sensitive market.

The news that just missed the cut

• Andy Florence comes out swinging against Zillow’s new listing rule

• Redfin adopts Zillow’s new listing rule but with a twist 

• Use these door-knocking scripts to build rapport in seconds

• Guess who had the priciest home sale in the history of Washington state

• How tariffs and stock market volatility are affecting luxury real estate

Foundation Plans

Advice from James and David to win the day

Negotiating has always been an important skill, and it’s going to become even more crucial as new listings are on the rise and buyers command greater leverage in most markets. In today’s edition and Friday’s edition, we are going to offer some tips on how you can sharpen your negotiation skills.  In our view, negotiation involves a strategic dialogue between all parties to reach a mutually beneficial agreement. Effective negotiation requires a blend of these three approaches:

Preparation – This is the cornerstone of successful negotiation. Solid preparation involves thorough research of the property, the market conditions, and the needs and constraints of both the buyer and the seller. A well-prepared negotiator knows the property's fair market value, comparable sales in the area, and the current demand-supply dynamics. This allows the negotiator to set realistic expectations and identify the negotiation boundaries. For example, knowing the average time properties stay on the market can give leverage in timing the offer or counter offer. Agents also need to anticipate potential objections, which almost guarantees they are ready for anything.

Understanding Interests – It’s important to understand all sides of the negotiation. The buyer’s position might be to purchase a property at the lowest possible price, while the seller’s position is to sell at the highest price. However, their interests might include factors such as the urgency to buy or sell, the need for certain closing dates, or specific property features. By knowing these motivations, a negotiator can propose creative solutions that lead to a win-win outcome for both parties. For example, a seller who needs to move quickly might accept a lower price if the buyer can close the deal sooner. Good negotiators can use this information as leverage to secure the best position for their clients.  

Building Relationships – Positive relationships are key to successful negotiations. Establishing trust and rapport can significantly impact the willingness to compromise and cooperate. Effective communication, active listening, and empathy are essential in this regard. When both parties feel respected and understood, they are more likely to engage in open dialogue and seek mutually beneficial solutions. This also means maintaining professionalism and integrity throughout the process. Even if negotiations become challenging, a respectful and honest approach can help preserve the relationship and facilitate smoother future interactions. Remember: real estate isn’t a “one-and-done” game. Not only will you hopefully deal with the sellers and buyers again, you’ll almost certainly see the agents in your market again. It’s important not to burn any bridges.

To learn more, start here.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

“Just because you are doing a lot more doesn't mean you are getting a lot done. Don't confuse movement with progress!”.” — Denzel Washington

Make sure you’re hitting your targets, friends. It’s easy to confuse movement with progress. Keep your eye on the ball and go after it. It’s your life, so make the most of it.

– James and David