Have you toured countless homes, but haven’t had luck securing your dream yet? Unfortunately for buyers in today’s competitive market, homes are being sold at an extraordinary rate and leaving many house hunters empty-handed. There’s good news though – the answer to landing the perfect home in a sellers’ market could be as simple as finding a hidden gem with loads of potential.
Turning a fixer-upper into your dream home is a good option if you’re not having any luck with your current home search. A fixer-upper might not have been your original plan, but many house hunters find that updating a home is the right solution to meet their unique wants and needs. If you’re debating between a fixer-upper or move-in-ready home, check out this pros and cons list.
Pros of Fixer-Upper Homes
- Great Deal – If you come across a diamond in the rough in a pricey neighborhood and you’re willing to put in what it takes to restore it, you could end up paying just a fraction of what your soon-to-be new neighbors did for their homes.
- Less Competition – There’s generally less competition for fixer-uppers than for move-in-ready houses. As a bonus, you’ll have more negotiating power with sellers.
- Personal Touches – With a fixer-upper, you can customize a house’s layout and details of each room to your heart’s desire. If you enjoy taking on home improvement projects, you may take pride in knowing that you did a lot of the work.
Cons of Fixer-Upper Homes
- Time-Consuming – Whether you plan on doing the work yourself or hiring a contractor, know remodeling can take a lot of time, so it’s important to have patience and an alternative living situation in the meantime.
- Unexpected Costs – While sales prices for fixer-uppers may be lower than move-in-ready houses, repairs, especially structural damage, can be very costly when all is said and done.
Pros of Move-In-Ready Homes
- Less Work – Buying a move-in-ready house requires much less work than a fixer-upper, so it may be a better choice if you’re on a tight deadline to move into a house or you’re not exactly a DIY kind of person.
- Updated – Move-in-ready houses are more likely to come with modern features and trends, like open floor plans, updated appliances and eco-friendly options. Transforming a fixer-upper to have these same features, on the other hand, could take a lot of work, time and money.
- Fewer Surprises – There’s always a slight risk of running into hidden problems when you buy a home, like structural issues, mold or critter infestations. But with a newer, move-in-ready house, you’re much less likely to encounter these.
Cons of Move-In-Ready Homes
- Less Creative Control – There’s not much room for customization with move-in-ready homes, other than choosing décor. If you’re not thrilled with the design or layout of a house you’re considering, you’ll have to pay more to have changes made or accept the house as is.
- Cost –There’s no way around it: you’re going to be paying more for a move-in-ready house compared to a fixer-upper.
Does a fixer-upper sound like the golden ticket to homeownership? As America’s Renovation Lender, we’ll simply include the cost of renovations into the sales price of the home, so you have just one loan and one monthly payment — and the home of your dreams. Contact a PrimeLending home loan expert for more information.