Shopping for a home can be exhausting. As you look at home after home, you start to feel frustrated at the amount of work the homes require. Wouldn’t it be great if you could find a move-in ready home? Fortunately, they do exist – they’re called turnkey homes.
What are Turnkey Homes?
Homes in great condition, ready to live in and that don’t need repairs are turnkey homes. These homes have no structural issues, look cosmetically pleasing, and don’t need minor repairs. If you chose to, you could literally move right into the home as-is.
Typically, turnkey homes were recently fully renovated. The sellers make the necessary repairs and renovations, hoping to recoup their investment within the sales price. Turnkey homes are great for busy families as well as investors that want a home they can rent out right away.
The Pros of Turnkey Homes
Turnkey homes have several obvious benefits:
- You may not need to make any renovations to the home
- You may love the cosmetic appeal and won’t even need to paint the walls
- Investors can rent the home out right away rather than putting more money into it and wasting time
- You don’t have to worry about meeting building codes or failing the appraisal
The Cons of Turnkey Homes
Turnkey homes sound amazing, but they do have their downsides:
- Turnkey homes cost more since the seller invested his/her money to make it move-in ready
- You don’t have a say in the home’s cosmetic appearance
- Real estate taxes could soar once the assessor figures in the new renovations
- You should still pay for an inspection to ensure that all work was done well
Use Caution With Turnkey Homes
Don’t fall for the label on the packaging, so to speak. Anyone can slap the term ‘turnkey homes’ on a home. But is it really? The term is rather subjective.
Do your own due diligence. Hire an inspector to make sure the home doesn’t just look pretty on the outside, but really has major internal flaws. Also, ask for a list of the recently done repairs. Pay close attention to those areas. Are they up to your standards? Does the work look like it was done by a professional? Do you see any issues?
Do you like the look of the home or would you make changes anyway? It’s not worth paying the inflated price if you will invest more in the home’s appearance anyway. Really look at what the seller claims they did and decide if it’s something you like and will keep or will change in the near future.
The turnkey home can be a great option for investors – it allows you to rent the home out almost instantly. But does it? Is the price worth it? Are there still things you may need to fix? Do you like the appearance of the house and does it meet the needs of your target audience? These are all factors you should consider before buying a move-in ready home.