Which is a Better Fit?
Which is a Better fit? You have a lot of things to consider when house hunting. Do you want a home that you could move into or a home that you have to fix up? Choosing between move-in ready homes and fixer-upper homes can be challenging. Given that they each have their own unique set of advantages and disadvantages. To help you determine the right type of home for you, we have listed some pros and cons of both types of homes.
If you’ve ever toured a home with shag carpets, peeling paint, and kitchen appliances from the 1970s, then you know all about fixer-uppers. A home described as a fixer-upper is usually livable, but the property needs significant work. Every fixer-upper is different. Some fixer-uppers only need cosmetic updates, while others may have more severe problems like mold or structural flaws.
The definition of ‘move-in ready’ can vary depending on who you ask. At its core, move-in ready means the current state of the house or property is ready for immediate occupancy. However, the term is broadly used to describe a house that doesn’t need any major renovations or aesthetic updates prior to moving in. Turnkey homes are more likely to have key features that many homebuyers are looking for, like modern appliances, updated flooring, and sleek interior design.
Pros and Cons of Move-In Ready Homes
A pro to buying a move-in ready home, is it allows you to unpack your boxes and enjoy your home immediately. After house hunting, home inspections, bidding wars, and more, the last thing homeowners want is a remodeling project. Move-in ready homes are safe for immediate move in. If you complete the proper inspections, you can expect fewer surprises like a septic tank issue or foundation problem that could cost a lot of time and money to fix. You’ll likely have an easier time sticking to your budget when buying a move-in ready home. Since these homes typically don’t need renovations, you won’t need to worry about going over budget during construction. Move-in ready homes are usually seen as a less risky investment than fixer-uppers to mortgage lenders.
One of the major cons to move-in ready homes are often more expensive than fixer-uppers. Convenience comes at a price. There may be limited opportunities for customization. Other than interior design, there isn’t much opportunity to customize these homes to your liking. Changing the floor plan to add a bedroom or bathroom could be extremely difficult and costly. The benefits of a move-in ready home are appealing to many homebuyers. Because of competition, you may have a more challenging time buying a house because of the high competition. Based on your preferences and the houses currently on the market, you may not find a home that perfectly fits your needs without any renovation.
Pros and Cons of Fixer-Upper Homes
A fixer-upper can be a great option for some homebuyers. Below are some of the major pros and cons of fixer-upper homes.
Pros for buying a fixer-upper is the price. Did you know that fixer-uppers are often sold at a lower price than turnkey homes? If you have the time and money to invest in a fixer-upper, you can get a large house in a great neighborhood for a fraction of the cost. A fixer-upper allows you to tailor your home to your personal needs and style. Property taxes are calculated on a property’s original purchase price, you’ll likely pay less in taxes when buying a fixer-upper. Investment opportunities: When done correctly, buying a fixer-upper and transforming it into a turnkey property can be a great investment opportunity for some homebuyers.
Some of the cons may be that you will need temporary housing during construction. If that’s the case, you’ll have to find a temporary housing solution like moving in with family or finding a short-term rental property – which can be expensive. If problems arise during the renovation process, who knows how long you’ll have to be in your temporary housing solution. Unknown problems: You never truly know what you’re getting yourself into. During demolition, you may find significant issues like structural flaws, asbestos, mold, etc., that can quickly eat away at your budget. Some mortgage lenders may see your home renovation as a risky investment. Because of this, they may choose not to finance your purchase, or you may have to use more expensive loan options.
After reading over the Pro and Cons, I hope you can come to a decision of which is a better fit for you. Be sure to check out next Tuesday’s Blog Post!