Purchasing a home is one of the most significant investments buyers will make in their lifetimes. Owning property and building equity can help you feel more financially secure in your future, but the question then becomes which type of home is right for you.
Each buyer’s journey is unique. While some new homeowners prefer a home that doesn’t need any work or upgrades, others enjoy the adventure and investment often found in a renovation. The key is to understand the difference between a turnkey house and a property that requires renovations to accurately determine which type of home is best suited to your lifestyle and budget.
What is a Turnkey Home?
If you’ve already had a meeting or two with your local realtors in Bedford Park or your current neighborhood, you’ve likely heard the term turnkey at some point in the conversation — but what exactly does that mean when it comes to house hunting?
Turnkey refers to a home that is considered move-in ready. Often, this type of home has been upgraded in recent years and doesn’t need any renovations or projects to be completed. Buyers can simply move their belongings in and start unpacking.
What are the Benefits of a Turnkey Home?
Investing in a turnkey home can yield a number of important benefits, including but not limited to:
Instantly Ready to Move In: One of the perks of a turnkey home is exactly that, simply put your key in the door, and you’re ready to move in.
A Potential Rental Investment: If you’re looking for an additional investment opportunity, purchasing a turnkey home is an effective way for you to quickly list your property on the market and start making passive income.
No Unexpected Building Costs: Since you won’t be participating in any major renovations, you can avoid any unexpected or additional building costs — which can help your overall budget.
What Does it Mean When a Property Needs Renovations?
On the other end of the spectrum, there are homeowners looking for properties that need renovations of some kind. This can range from changes like new flooring or countertops to complete overhauls of the homes themselves — what many refer to as taking everything down to the studs.
Taking on a renovation brings its own set of challenges and benefits. Before you make a decision with your realtor, let’s look at some of the important considerations necessary when browsing for these styles of homes.
What to Consider in a Renovation Project
When it comes to purchasing a home that requires significant upgrades and changes, it’s important to consider these important factors.
- Timeline
- Initial Costs
- Potential Contingencies
- Purchasing Budget
- Value of the Home
A renovation is a significant undertaking, and whether you’re a first-time or seasoned homeowner, discussing these factors with your realtor is the first step to determining if you’re equipped to handle this style of home — or if a turnkey property is better suited to your needs.
