When it comes to buying real estate, you want to make sure the property you purchase is the right fit for your needs. For some buyers, purchasing a home that needs some work is the ideal situation. For others, getting a turnkey home that’s move-in ready is the only option they’ll consider. And for still others, both seem like reasonable options.
The question is: which is for you? There are pros and cons to both fixer uppers and move-in ready homes. The important thing is to recognize which is the best fit for you, your budget, and what you want out of a home.
Let’s take a look at the pros and cons of fixer uppers and move-in ready homes to help you determine which is the better fit for you:
Fixer uppers are, as the name implies, homes that need a bit of TLC – or fixing up – upon move in.
The major draw of fixer uppers is the price. Since they need work, you can typically get a fixer upper at a fraction of the cost of a move-in ready home of a similar size or in a similar location. So if you’re on the hunt for a bargain or you have a tight budget, a fixer upper is definitely going to be the least expensive home-buying option.
You can make the house your own
Since a fixer upper will need work and renovations, it does offer the opportunity to put your own stamp on the design and layout and really make the house your own. With a move-in ready home, the work has already been done and the home already designed. With a fixer upper, you get the opportunity to build your home from the ground up with everything from flooring and cabinetry to landscaping and windows.
It’s a project
For people who are interested in home renovation, there’s nothing better than a fixer upper. Taking on the challenge of completely transforming a home is a really exciting prospect for a lot of people, and if you’re in that camp, a fixer upper is a great opportunity to take on a worthwhile project.
It can get expensive
Even though the purchase price of a fixer upper is typically low, if there is a significant amount of problems with the property or changes that need to be made, it can definitely get expensive. Things like repairing electric, adding a new roof, tearing up and installing new flooring, and redoing a kitchen can get pricey, and if you’re not careful, you can find yourself way over budget, swimming in contractor bills with no end to your renovations in sight.
It takes time
Even if you’re a person who loves renovating homes, there’s no escaping the fact that it takes time. If you need to move into your home quickly, a fixer upper isn’t going to be the right fit.
Move-in ready homes are recently built, updated, or remodeled homes that need next to nothing in terms of renovations or improvements. You can comfortably move in without making a single change.
In terms of convenience, you can’t beat a move-in ready home. Moving can be a stressful process, and for many new homeowners, the last thing they want to do upon moving into their new home is start managing a bunch of renovations. With a move-in ready home, once you move in, you’re done. While you may want to make some cosmetic changes down the road (like painting the walls or changing the flooring), there’s nothing that needs to get done after you move.
Better energy efficiency
Newer, move-in ready homes tend to be more energy efficient, which is not only better for the environment, but also better for your utility costs. Energy efficient homes require less energy to heat the home during the winter and cool the home during the summer, which can end up saving you a significant amount of money in the long run.
Home prices are higher
When you buy a move-in ready home, you’re paying for the convenience. Move-in ready homes will always be significantly more expensive than fixer uppers in the same neighborhood and of the same size. If you have a tight budget, you might have to make some sacrifices to purchases a move-in ready home, like buying a smaller house or buying in a less popular neighborhood.
The “cookie cutter” effect
When you buy a move-in ready home, everything has already been done for you. Which is certainly convenient, but it can lack originality, charm, and the architectural and decor details you might want in a home. Newer homes sometimes feel more generic and “cookie cutter” than their older counterparts, so if charm and individuality are important for you, a move-in ready home might not feel like the best fit.
Fixer uppers and move-in ready homes both have unique benefits and challenges. Ultimately, you have to go with the choice that best aligns with your budget, your needs, and your long-term goals for your home.
With stay-at-home orders starting to gradually lift throughout parts of the country, data indicates homebuyers are jumping back into the market. After many families put their plans on hold due to the COVID-19 pandemic, what we once called the busy spring real estate season is shifting into the summer. In 2020, summer is the new spring for real estate.
Joel Kan, Economist at The Mortgage Bankers Association (MBA) notes:
“Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”
Additionally, according to Google Trends, which scores search terms online, searches for real estate increased from 68 points the week of March 15th to 92 points last week. As we can see, more potential homebuyers are looking for homes virtually.
What’s the Opportunity for Buyers?
Another reason buyers are coming back to the market, even with forced unemployment and stay-at-home orders, is historically low mortgage rates. Sam Khater, Chief Economist at Freddie Mac indicates:
“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”
With mortgage rates at such low levels and states gradually beginning to reopen, there’s more incentive than ever to buy a home this summer.
What’s the Opportunity for Sellers?
Finding a home to buy, however, is still a challenge, as this spring sellers removed many listings from the market. Though more people are now putting their houses up for sale this month as compared to last month, current inventory is still well below last year’s level.
According to last week’s Weekly Economic and Housing Market Update from realtor.com:
“Weekly Housing Inventory showed continued tightening. New Listings declined 28% compared with a year ago, as sellers grappled with uncertainty and hesitated bringing homes to market. Total Listings dropped 20% YoY, a faster rate than in prior weeks, leaving very few homes available for sale. As Time on Market was 15 days slower YoY, asking prices moved up 1.5% YoY.”
If you’re thinking of selling your house this summer, now may be your best opportunity. With so few homes on the market for buyers to purchase, this season may be the time for your house to stand out from the crowd. Trusted real estate professionals can help you list safely and effectively, keeping your family’s needs top of mind. Buyers are looking, and your house may be at the top of their list.
If you’re thinking of selling, many buyers may be eager to find a home just like yours. Reach out to a local real estate professional today to make sure you can get your house in on the action this summer.
7209 HWY 16 DE LEON, TX 76444
Over the creek and through the park-like setting is a beautiful ranchette for sale in De Leon, Texas. It’s easy to imagine sipping a cold glass of lemonade on your covered front porch as you ponder your afternoon activities or equally easy to picture an evening chatting with old friends on your covered back porch. You’ll feel peacefully secluded yet will be only 3 miles from De Leon, a short 25-minute drive to Lake Proctor, or about 90 minutes from Fort Worth.
The home is a dream for a growing family, yet perfect for downsizing boasts 3,466 square feet of living space. Walking into the grand entry hall is an ideal landing space for family and friends to enjoy hours of visiting, easily flowing into the large family room for parties. The crisp look of the balcony highlights the vaulted ceiling in the family room. Imagine a grand entrance for a memorable day like homecoming at-home wedding, or siblings acting out plays for family and friends below.
A master suite, two additional bedrooms plus an office area, provide great spaces for privacy and personal space. A formal dining area is next to the family-friendly kitchen with a built-in pantry, gorgeous wood finish, plenty of storage, double oven, and a central cooking island with an indoor grill. The house is connected to county water, and the property has 3 wells and 2 ponds.
New fencing in the front and back of the property includes cross fencing perfect for horses or cattle along with the holding pens, 90×50 large barn with shop, smaller barn for holding animals, and pasture. The coastal field on the backside, totaling 75 acres, averages 125 bails. This acreage is where animals were born to live and thrive! Plenty of room for more than a few horses, dogs, chickens, cattle, and a barn cat. Plus, there is plenty of room for all the human toys and activities too! A large storage building can host an RV, boat, trailer, four-wheelers, and additional toys, while the workshop with electricity and full bath is ready for any ranch project.
There is too much about this picturesque home on acreage to discover. It’s no surprise there has only been one owner, and it is sure to go fast in the current market. To learn more about this ranchette for sale in De Leon, Texas, visit the listing site, or call (254) 977-3762 today!