Fixer Upper or Move In Ready?
Aventine Properties | March 23rd 2022 | 3 min read
For the most part the housing market consists of move-in ready homes which require no work to be done, and fixer-uppers which are in need of remodels. Houses that are move-in ready have usually been maintained throughout the years whereas fixer-uppers are typically considered to be outdated with decade old kitchens/bathrooms, and maybe even appliances. As appealing as move-in ready homes are, fixer-uppers tend to be more affordable. However, they are not for everyone. Remodeling homes can be a lot of work because of the time and money that they require. If you don't have that, a move-in ready home is probably the way to go. Or maybe meet somewhere in the middle where the amount of work that a home does require is minimal.
Pros of Fixer Upper:
- You get to customize it to your liking.
- Buy a home for far less money, potentially saving money with the remodel.
- Property Taxes will be on the lower end since you paid a lower price for the home.
- Tax Credits with STAR ENERGY. If you do make upgrades, selecting the energy saving options could make you eligible for a tax credit.
Cons of Fixer Upper:
- Risky, the costs of fixing a property could be higher than predicted.
- You should hire licensed contractors to do any major work, which means you will need to work around their schedule.
- You might need to pull permits for some renovations. For example, new electrical wiring, or demolishing load-bearing walls will normally require permits.
Pros of Move In Ready:
- Little to no amount of work.
- No overspending - You know what you're getting.
- No large amounts of wait time, usually only painting is required in these situations.
Cons of Move In Ready:
- The home may not be exactly what you want.
- Tend to be more expensive, and if no changes are made, values may depreciate over time.
Can you get tax credit for home improvements? Yes you can, energy saving upgrades such as solar panels and energy efficient windows, are one way to get tax credits for the year that improvements are made. Other improvements—like adding a pool, building a garage, remodeling bathrooms and kitchens—only qualify for tax deductibles when you sell the home. Ultimately, the decision of buying a house will come down to a) the condition and price of the home that you're interested in and b)the amount of time and money it will take to achieve your dream home.
If you're in the early stages of purchasing a home, here's another article you may be interested in 5 Things To Do As A First Time Home Owner.