One of the most common questions asked by a home buyer: Should I buy a turnkey / completely-rehabilitated home? Or should I buy a fixer?
There are upsides and downsides to both.
Advantages of a turnkey/rehabbed home:
(1) Turnkey - sellers give you the keys and that's all that's needed
(2) So easy - no planning or designing
(3) Timing - immediate move in
Disadvantages of a turnkey home:
(1) They cost more
(2) Questions about construction quality
(3) Style and design choices
Advantages of a fixer-upper:
(1) Lower acquisition cost - you're not paying for upgrades and profit
(2) Design and style choices - your choice
(3) Construction quality - you can control the quality
Disadvantages of a fixer-upper:
(1) Time - can take MONTHS to complete the work
(2) Costs and financing - most upgrades are on a cash basis / construction loans are complicated and expensive
(3) Undiscovered problems - finding an unexpected and expensive problems
In the real world, of course, it isn't a binary choice; homes aren't just either 100% brand new remodels VS total-gut fixers. They're on a continuum - some homes just need a little bit of help... But the same decision process applies!
For more information on the systems that I use and the extremely effective strategies I employ for both home buyers and sellers, please contact me.
Michael Hausam is a licensed Realtor (BRE Agent #1319560) and Mortgage Loan Originator (NMLS # 1577195). He's been a resident of Orange County, CA since 1990, he funded his first mortgage loan in 1991, has had a B-1 general contractors license since 2005, and he has had his real estate license for over 19 years.