Should You Buy a Fixer-Upper or a Move-In Ready Home?
When buying a home, one of the biggest decisions you’ll face is whether to go for a fixer-upper or a move-in ready home. Each option has its benefits, but knowing which is right for you depends on your budget, goals, and comfort level with renovations.
Buying a Fixer-Upper: Build Equity, But Be Prepared
Buying a fixer-upper can be a great opportunity to build equity, especially if you purchase with the after-repair value (ARV) in mind. These homes often come at a lower price, but you’ll need to be prepared for the costs associated with renovations. Without proper budgeting or thorough inspections, it’s easy to go over budget due to unforeseen issues like plumbing problems, foundational cracks, electrical repairs, or HVAC replacements. Sometimes, these problems only become apparent once you start tearing out walls or floors, which is why having a contingency budget is crucial.
Many fixer-uppers are financed through cash, hard money loans, private financing, owner financing, or 203k FHA loans, as these homes may not qualify for insurance until renovations are complete. The upside? You get to customize the home to your taste, from selecting finishes to designing the layout.
Buying a Move-In Ready Home: Convenience and Peace of Mind
On the other hand, buying a move-in ready home offers convenience. Whether it’s brand new or a recently remodeled resale, you can settle in without worrying about costly repairs. Some renovated homes are thoroughly gutted and updated with new plumbing, electrical systems, roofing, and more, essentially giving you a “new” home. However, beware of homes that have only had cosmetic updates like new flooring and paint — these are often quick flips with subpar craftsmanship aimed at making a fast profit.
Which Option Is Right for You?
Whether you’re looking to buy a fix-and-flip to resell or a move-in ready home to settle into, I’m here to help you navigate the process and make a smart investment. Let’s chat when the time is right, and I’ll guide you through either scenario to ensure you make the best decision for your future.
