Turnkey vs. fixer upper homes: which is right for you?

There are a lot of reasons people love living in Arizona – like year-round sunshine, an array of dining spots and neighborhoods for every age and stage of life. Whether you’re looking for a move-in ready home or a place that needs a little TLC, you can find it here. Here are a few things to consider for your search.

Turnkey homes: Move-in ready convenience

Turnkey homes are properties that have everything you need to move in right away. They require little to no additional work once you’ve closed on your purchase. For many buyers – particularly those moving to Arizona from out of state – the convenience of a turnkey home is unbeatable.

Advantages of turnkey homes

• Immediate move-in: With no renovations required, you can settle into your new home right away.
• Predictable costs: Since the home doesn’t need major repairs or updates, you can avoid those unexpected expenses.
• Fresh features: Turnkey homes often come with newer elements like appliances, countertops and cabinetry.
• Less stress: The homebuying process can be a bit overwhelming on its own. A turnkey home reduces the added stress of big projects and the costs that come with them.

Considerations for turnkey homes

• Higher upfront cost: Turnkey homes generally come at a higher price due to their move-in-ready status.
• Limited customization: What you see is what you get. There’s less opportunity to personalize your home to your taste, unless you have the budget to do so.

Fixer upper homes: Potential and personalization

On the other hand, fixer-upper homes require some level of renovation, whether it’s new flooring or a total gut job of the entire property. Fixer uppers can be more work upfront, but they offer a range of benefits if you’re willing to invest time and effort.

Advantages of fixer upper homes

• Lower purchase price: These homes typically sell for less than turnkey homes, offering a lower entry point into the market.
• Customization: Renovating allows you to tailor the home to your preferences and needs.
• Investment potential: With the right improvements, fixer uppers can increase significantly in value.
• Character and charm: Some older homes come with rare architectural features and layouts you won’t find in a new build.

Considerations for fixer upper homes

• Renovation costs: It’s important to budget for repairs and improvements, which can sometimes cost even more than you plan for. If you need a boost, consider a HELOC for renovations or eco-friendly home updates.
• Time and effort: Renovations can be time-consuming and may require you to live somewhere else in the meantime.
• Unexpected issues: Older homes could have problems with things like wiring or plumbing that you may not find until you’ve already bought it.

Questions to ask yourself

Choosing between a turnkey home and a fixer upper depends on your personal circumstances, including your budget, timeline and willingness to take on a project. Ask yourself:

1.  What is my budget? Turnkey homes typically have higher upfront costs but fewer surprises, while fixer uppers may be cheaper but require significant budget for renovations.
2. How soon do I need to move in? If you need to settle in quickly, a turnkey home is the best choice. If your timeline is flexible, a fixer upper could be worth the wait.
   
3. Am I comfortable managing a renovation? Renovations require time, effort and the ability to juggle tasks and make decisions. Consider whether you’re up for the challenge.
4. What features do I want? Make a list of must-haves for your new home. Some might be easier to find with a turnkey property, while others might be better achieved with a custom renovation.

The bottom line

Whether you opt for a turnkey home or a fixer upper, the Valley of the Sun has a place for everyone. Buying a home is a big decision, so take your time and do what’s best for your budget, lifestyle and future plans. Happy house hunting!