Weighing the pros and cons of different property types
When you start your house hunting, you should have certain criteria like location, price, and size. Another factor that you have to consider that may affect you from moving in dates, and financing options is the house’s condition.
So, what’s best and what’s the worst? Well, it may vary from buyer to buyer. Your option will depend on your standards and goals, of course, budget, skillset, and buying timeframe.
Having said that, there are 4 types of homes that you may encounter as a buyer. This guide will help you narrow down on the property that is right for you.
New Construction Homes
New buildings are newly constructed houses, which are usually bought directly from the home builder. Alternatively, you can opt to buy a lot first and then build your home there. Whatever choice you choose, you are getting a brand new, unlived-in house.
Some definite perks come with buying a new building. For one thing, not only is the home new, but it is also all-new inside. In the near term, this means you can expect low or no cost of replacement/repair for your house, appliances, and fixtures.
Most of the time, it can take a while to sell a new building. When you start from zero, it could be months or even years before you move in — which can make it hard if you are selling your current house in the process.
When you are concurrently selling your house and purchasing a new house, flexibility in the closing date will make the process a little easier.
- More control over design and amenities
- Ability to oversee the build
- May offer energy-efficient options
- Less maintenance and repairs upfront
- May come with a home warranty
- Should have an effortless method of appraisal and inspection
- May extend your transfer
- Cost more (particularly on upgrades)
- The opportunity for negotiation is less
- The construction process might be delayed.
Flipped or Recently Remodeled Homes
Flipped house is also an option. Flipped houses are the ones that underwent extensive remodeling. These homes may have been purchased by an accomplished real estate investor as “fixers” and restored. One of the main benefits of these properties is that they are normally move-in ready. Before you move in, you will most likely not have to make any major improvements, so you can generally expect a home that is in a relatively decent condition.
- Most of the time, the features and appliances are already upgraded.
- You can move-in any time because usually, they are move-in ready.
- Fewer repairs or upgrades required.
- No repair quality guarantee
- There might be untold issues
Turn-key / move-in ready
Move-in-ready homes are also referred to as “turn-key” properties. Turn-key homes are those that don’t need any significant work to be inhabitable and are practically ready to go the moment you close escrow.
- Require little to no work
- Ready for move-in
- Should have an effortless appraisal and inspection processes
- May cost more
- No control overlook or home design
If you are a handy type who wants to live your HGTV DIY dream, you could consider a fixer the perfect choice. Fixers are homes that occupy them comfortably / safely may need some kind of work. Fixers come in varying states of disrepair, and their problems may be attributed to anything from neglected maintenance to pure old age.
The greatest benefit of purchasing a fixer-upper is the price. Since they are typically priced at bargain-basement, aside from that, you have full control of the house design and may upgrade anything you like kitchen, living room, add a room, and so on. Just make sure you carefully pick your remodeling projects and concentrate on those that will boost the long-term value of your house.
The disadvantage of this type of home is that you may also find that there are limited funding choices. This is critical because you would probably need substantial financial investment to fix the property once it is purchased.
- Most likely, cheaper than other home types
- Value Added Chances
- There are rooms for negotiation
- Options to design the house as you like
- A financial option is very limited
- Sometimes repair permits required
- Hidden issues may be revealed in the inspection
- Need research and work before moving in
- It will cost you more in repairs and renovations.
Every house has its own pros and cons, regardless of condition. As long as you’re clear on your goals, budget, and preferences, you should be able to zero in on the type of property that’s right for you. When you do, check out how our trade-in program can help ease the transition. A good REALTOR® can aide you make the right offer for the property you’re interested in buying. For free valuation, contact us at 401-396-2888. We’re always glad to help!