Whether you’re a seasoned or first-time buyer, there are always diamonds in the rough. Sometimes those diamonds have to be created yourself. While some people are eager to move, others may have the luxury of waiting, either way, you have to decide for yourself if buying a fixer-upper is right for you. Here we will go through the pros and cons of buying a fixer-upper vs. move-in ready homes.
- Discounted Price
This is probably one of the main reasons to buy a fixer-upper. These homes are usually priced below market value, making them a great deal. Fixer-uppers are perfect for people who are not in a hurry to move and don’t mind getting their hands a little dirty.
- Tax Savings
Property taxes are based on the sale value of the home. So if you’re paying less for your home you will then be paying less for your biannual property tax. Also, some fixer-upper homeowners are allowed to claim an investment tax credit, if they qualify for rehabilitation costs. Most often, historical homes qualify for these tax credits.
- Design Choices
Besides buying the property for a great price, one of the best reasons is you get to design your home yourself. This home is your blank canvas and you can choose which every concept that your heart (and budget) desires. If you want an open floor plan, go for it, you can tailor your home to your liking.
- Extra work
Obviously, fixing up a home is going to be a lot of work. You have to research and hire contractors and designers. Some people find this type of work invigorating, while others cringe at the idea of getting their hands dirty. It is all up to you if you’re ready for commitment.
- Remodeling costs can outweigh savings
It’s best to do your research before you buy because some homes may need some major work. Also, it is very easy to get carried away with renovations and spend too much. So whether you have to redo the kitchen or the whole entire home, look up the average costs to get an idea of how much you’ll be spending.
- Easy transition
These homes are ready for you to just move all your belongings into. These types of homes are great for people who have a time limit and need to move immediately. There is no painting, ripping out, or demolishing.
- New design and technology
Moving into a fairly new or remodeled home has all the modern elements for today’s lifestyles. They usually come with open floor plans, in-home alarm systems, internet wiring, and other designs and technology that can save you time and money.
- Energy Efficient
New homes are created to maximize energy efficiency. They will keep your home cooler in the summer and warmer in the winter, saving you hundreds annually on heating and cooling costs.
A move-in ready home is obviously going to cost more. If move-in ready homes were priced the same as fixer-uppers, no one would buy the fixer-uppers. Just know you are going to be paying more for your home if it is move-in ready.
- Little customization
If this is your dream home, you want it to be exactly the way you want it. Move-in homes have almost zero customization options, unless you remodel yourself, which you will be paying on top of the home’s price. Also, newer homes don’t have the unique architectural designs older homes have. For some, this may not be an issue, but for others, they love the unique distinctions.