Buying a home is a complex problem requiring you to ask numerous questions about your lifestyle. What is a good location? What neighborhood best suits you? What is your budget? What are your basic needs? What kind of home do you envision yourself in? A new sleek and modern home in a trendy neighborhood? Or a simpler house in a small neighborhood? And lastly, how much work do you want to put into your home?
Some individuals crave a new project and wouldn’t consider a new build because of this, others can’t be bothered by the hassle and prefer and would prefer a newer home. Below are some of the advantages and disadvantages of each.
Move-In-Ready Home: Advantages
Ease of Transition: A newly finished or move-in-ready home is easy and you can get down to the fun tasks like painting and decorating immediately.
Technology: In a newer home there typically will be newer technology already in place. This may be items such as built in speakers, newer appliances, etc.
Efficiency: Not only is there new technology, the house itself will most likely be more efficient with better insulation, glazing, and heating methods. It is difficult to make older homes as efficient as newer ones.
Move-In-Ready Home: Disadvantages
Expense: While there are many positive features of a new home they commonly are more expensive as you are paying a premium for someone else’s work. When you do the work on a fixer-upper you pocket the profit.
Decision Making: When you buy a newer home, often design decisions will have been made for you. With a new home you may have to sacrifice some stylistic autonomy.
Quality: When you don’t oversee the build it could mean it is not done to your expectations. Before you purchase a new home ensure you have an inspection done.
Less expensive: The most obvious benefit is price. A home that requires work will typically be less expensive than a newer home in great condition.
Value Added: By putting in work to fix up an older home you can increase the value of the home. This means if you turn around and sell the home you could stand to make a profit in the right market.
Your Dream Home: When you fix up a home you can create the home of your dreams. You will have the decision power when it comes to everything as decisions are entirely yours.
Effort: Whether you physically do the work yourself or hire a contractor, someone will need to get their hands dirty. Ensure you are ready for your undertaking before you pay a down payment on a house that requires substantial work.
Time: Do you need to move into your home right away? With a home that requires work it may be weeks or months before the home is livable. It may take even more time before your house feels like your home. Even small upgrades take time. Be certain you are okay with this before choosing a fixer-upper.
Hidden Costs: You have budgeted for the full renovation only to find out there are numerous unforeseen costs involved. Build yourself a buffer or set aside some funds in case there are costs you had not anticipated.