When you’re ready to buy a home, the decision of whether you should shell out for a move-in ready home or take the plunge with a home that needs renovation is bound to come up. Which one should you choose? This is not an easy
Buying A Home That Needs Renovation: Pros
- Less expensive. An outdated or neglected home is probably going to sport a smaller price tag than a home that’s brand new and updated. If your budget is a big issue, a house that needs work might afford you a larger home in a nicer neighborhood than you could otherwise afford.
- Can be updated to your taste. If you end up purchasing the flooring, paint, lighting, and fixtures, the good news is you can choose the ones you like. A home you renovate will be your creation and will more likely suit your tastes than a move-in ready house.
- Tax savings. A fixer-upper can save you some bucks when tax time springs up on you. If you’re using a home equity line of credit to pay for the renovations, the interest on the loan is tax-deductible. In addition, upgrades can be added to the house’s cost base so there will be less taxable profit when you sell.
While fixer-uppers offer several advantages, they also come with drawbacks.
Buying A Home that Needs Renovations: Cons
- Greater Amount of Work. The bad thing about renovating is, well, renovating! Planning which upgrades to tackle first, deciding to do them yourself or hire a contractor, and figuring out how to pay for them can all be questions that turn into big headaches.
- They Can Take a Long Time. If dust and mess drive you crazy, a home renovation may push you over the edge. Projects typically take longer than expected to finish. Houses that need lots of work can be torn apart for several months, with kitchens and baths being unusable. This is a stress factor some people just can’t handle.
- There May Be Nasty Surprises. There’s no telling what you’ll find when you open a wall or dig up a floor. Costly issues may rear their heads during a renovation that derail the plan and increase the cost and time to complete. Water damage, bugs, and previous renovations that weren’t up to code fall into this category. And there’s no proactive way to be ready for these problems.
You might think a move-in ready, new home is the way to go during your home search. New or completely refurbished homes provide distinct benefits.
Buying A Move-In Ready Home: Pros
- Easy Transition. Moving is mega-stressful, but a home that requires zero work can lessen that dramatically. This allows you to close, immediately move, unpack, set up your furniture, and get back to your schedule with minimal downtime and disruption.
- Enjoy new electric, appliances, and plumbing. You won’t be dealing with leaky faucets, ancient appliances, and outdated or dangerous wiring and lighting with a move-in ready home. Since it’s all new and upgraded, you can feel safe and comfortable the minute you move in.
- Newer design. Older homes may function from necessity, not convenience and comfort. Think washer and dryer in the kitchen. You won’t need to deal with such irritations with a new home that’s designed to today’s standards and with modern practicality. You can expect thoughtful, intuitive designs of space and flow throughout the kitchen, bath, and bedroom areas in a new home that you won’t experience in a fixer upper.
Nothing, not even a move-in ready home, comes without disadvantages.
Buying A Move-In Ready Home: Cons
- More Expensive. You’ll definitely pay for the convenience of purchasing a home that requires little or no work. New and upgraded homes can sell for tens of thousands of dollars more than their outdated, run-down counterparts. Buying an updated home can strain or break your budget, depending on the size and neighborhood you are seeking.
- Higher Taxes. With a higher, move-in ready cost home, you will obviously pay more taxes on your investment. These can end up adding hundreds, or even thousands, more dollars out of your pocket.
- May Not Be Your Style. Even if it’s brand new, you may not like the decor and layout of a ready- to-move-in home. But, because it’s new, you may feel stuck with it for a while.
Deciding to buy a move-in ready home or opting for a fixer-upper is a choice only you can make. It’s important to weigh your options and the pros and cons of each before making up your mind. Carefully thinking it over can give you peace of mind that you’re making the best decision.
