Should You Buy a Fixer-upper or Move-in Ready Home?

?

Shows like HGTV’s “Fixer Upper” have popularized the idea of buying and renovating the worst house on the best block. Homes that need major remodeling, however, aren’t for everyone. Sometimes a move-in ready house is a better option. Whether you’re a first-time homebuyer or a seasoned investor, it’s important to understand the pros and cons of each.

Pros of Fixer-Uppers
  • Lower price — Homes that require some updating tend to be priced lower, and many renovations can quickly add value to your home.
  • Creative control — When you’re the one in charge of updating your home, you can customize it however you choose.
Cons of Fixer-Uppers
  • Delayed move-in — The planning and work involved to fix it up can significantly delay your move-in date.
  • Unexpected costs — No matter how well you plan, major renovations are always subject to unforeseen expenses.
Pros of Move-In Ready
  • Quick move-in — Can’t wait to begin nesting? With a finished home, you can start moving in as soon as you get your keys.
  • Energy-efficient technology — New and renovated homes are often outfitted with the latest energy-efficient options when it comes to kitchen appliances and heating and cooling systems, which can save you money over time.
Cons of Move-In Ready
  • More expensive — To recoup the costs of updating, sellers often price move-in ready homes much higher. These homes also don’t allow for easy customization.
  • Questionable quality — When you’re not there to oversee the update process, you’re unable to ensure that high-quality work and materials are used for your home.
Still not sure which approach is right for you? Take this quiz to help you decide if you’re ready for a fixer upper.
Kathlyn’s Tip — Be sure to work with a knowledgeable real estate agent, who understands not only the local market but more importantly your needs as a buyer.  If you are debating between restoring a home or new construction in the Houston area, please contact my office for a consultation. My combined experience as a realtor and former tax attorney can help you navigate the pros and cons.