When it comes to purchasing a home, a very common question people ask is: “Should I buy a fixer upper, or a move-in ready house?” There is so much to consider as you begin to look a properties. I would argue that the main two factors to remember are condition and price. Before you make an offer on a house, this must read guide will help you in determine if a fixer upper or move-in ready home is right for you.
The Advantages of a Fixer Upper:
About 90% of the fixer uppers I see with my clients are typically estates. This means that an elderly family member has moved out or passed away, and the family is left to manage the sale of the house. It’s very likely that the person who owned the home has lived there for 30, 40 or possibly 50+ years.
Estate sale fixer upper homes boast tons of charm and character. You might find original solid woodwork around doorways or custom built ins throughout. I’ve seen beautiful elaborate tile designs in the bathroom floors dating back to the 1800’s. Some of these houses have hidden gems like perfectly preserved hardwood flooring under layers of shag carpet and padding. Kitchen cabinets in some houses are solid wood which can easily be brought up to date with a few coats of paint and new hardware.
When you buy a fixer upper, the price is typically reflected in the market with a lower number. They are usually cheaper to purchase because the costs to repair and bring it up to date has been taken into account in the price. A great option that many lenders offer is a loan program that will allow you to roll some of the renovation costs into the mortgage. This gives you the opportunity to cover the renovation costs without paying thousands of dollars out of pocket. Ask your mortgage professional what your lending institution has to offer in terms of a home renovation loan.
Disadvantages of a Fixer Upper:
Take it from someone who has literally lived the fixer upper life for almost 5 years now. Its not at all as glamorous (or as quick) as you see on HGTV. Until you begin the demolition work, you never know what is behind those walls. For example, Brandon and I removed a stone fireplace wall inside our house only to find the studs behind it were totally rotted. We had to quickly put in a new beam and support structure to enforce the load of the upstairs. Just that wall alone set our timeline back months, and added a huge expense to the budget we were not anticipating.
Be aware that many of these older homes could contain hazardous materials like lead based paint, mold, asbestos and outdated electrical wiring. Make sure you have a qualified home inspector who’s familiar with these substances. He or she will guide to as to the proper testing and recommend licensed remediators you can hire to remove such materials.
Advantages of a Move-In Ready House:
When you purchase a move-in ready house, there’s really nothing left to do but unpack and settle in. A move-in ready houses is like buying an upgraded car with all the bells and whistles. Usually everything in great condition, so there’s less to repair immediately. All the appliances are up to date and usually newer. The paint, trim and other finish work is typically clean and in good shape. A move-in ready house buys you peace of mind so you can focus on enjoying your new house immediately. If maintained, it will hold it’s resale value if you ever decide to move.
Disadvantages of a Move-In Ready House:
Buying a car with all the bells and whistles comes with a high price tag, and the same goes for a move-in ready house. If you’re buying in a seller’s market, you are likely to pay top dollar for a move-in ready property. Sellers know that they can get market value or more for a house that’s turn-key. (Take this as a hint if you are planning to sell in the near future!) Houses that are in great shape are in higher demand than fixer upper houses. Don’t be surprised if you find yourself in multiple offers on a house that’s move-in ready. When you’re ready to make an offer, ask your agent if you can include an escalation clause in your contract so your offer stands out.
One other slight disadvantage of a move-in ready home is selections like flooring and cabinets are already selected. In a fixer upper home, you have full control to choose all your finishes like hardwood, tile, faucets, cabinets etc. A turn-key house may not have the finishes you would select. If you’re paying top dollar, there may not be room in the budget to make changes right away.
You Decide.
The way I see it, fixer upper and move-in ready houses are tied. I really did not enjoy living in the middle of a construction project for 4.5 years. It would have been amazing to just move in, unpack and call it a day. However, I can’t imagine having anyone else choose the fixtures and finishes of my house for me. I love that my house has my personal mark in every single room- I just hated doing the work!
Which type of house do you prefer??
