Are you in the market for a new home? If the answer is yes, one of the biggest decisions you will have to make is whether to buy a turnkey house or one that needs some TLC. The choice that is right for you depends on five major factors.
- Time. If your new home is move-in ready, your biggest headache will probably be packing and unpacking. But it can take months to complete renovations on a fixer-upper, even if you don’t do the work yourself. Interviewing contractors, comparing estimates, choosing cabinets, granite, finishes, and overseeing the process is a big time- commitment.
- Aesthetics. Move-in ready houses are great because you don’t have to do a lot of work to make them livable. But that also means you may not get exactly what you want, since someone else decided what color the kitchen cabinets should be and whether to install hardwood floors, carpet or tile. Even though it takes more time, if you opt for a fixer-upper, you get to make those decisions for yourself, so even the smallest details reflect your personal style.
- Hassle. If you choose to buy a fixer-upper, you must be prepared to either live in a construction zone or find somewhere else to live until the renovations are complete. If you can’t stay in your current home or apartment, you may need to move twice. But you’ll have the home of your dreams when it’s finished.
- Money. A house that is move-in ready typically costs more up front than a fixer-upper. But the price of renovations can add up quickly, and it’s not uncommon for projects to go over budget. If you are thinking about buying a home you want to renovate, it’s important to run the numbers and make sure the total cost — purchase price and updates — is something you can afford. You may also want to leave a little wiggle room in your budget in case renovations exceed your original budget.
- Market. If you live in a hot real estate market where competition is high and every house seems to get multiple offers, it may be tough to get a move-in ready home in your price range. There may be less competition for a fixer-upper, which might increase the chance your offer will be accepted. Otherwise, you could be waiting a long time to become a homeowner.
Whether you are looking for a home you can move into without making any major changes or you want to renovate a house to match your vision of a dream home, we can help you find the mortgage that’s right for you. Speak with one of our Licensed Mortgage Professionals or Renovation Loan Experts today!
