Move-In Ready Vs. Fixer-Upper: What to Buy?

When you buy a new home, two things to have at the back of your mind are how much you will spend to maintain it and how much you will make when you eventually sell it. Believe it or not, the maintenance cost of a building and its ROI is often determined well before you buy the home.

What are the factors that influence these numbers?

The three most important things to consider before you buy a home are its location, selling price, and the physical condition of the building. Of these three factors, location is evidently the most important. But after you have decided on your preferred location, you want to look at the prices of the available house.

Perhaps, the biggest influence on the selling prices of the homes you will consider is their physical condition. Typically, you will have a choice between homes that are in good condition but are being sold at a higher price and homes that are in poor condition and are more affordable, as a result.

The higher-priced houses, called move-in ready homes, will be ready for you to move in as soon as you complete the purchase. However, you will have to pay more for that house. The lower-priced home will require further investment of money and effort to bring it to the place where you can live in it.

Between the move-in ready home and the fixer-upper home, which one should you buy? Naturally, you want to save as much money as you can when buying a house and the fixer-upper might seem to offer this opportunity. But things are never that simple, which is why you should read this blog before you make the decision.

The pros and cons of a move-in ready home vs a fixer-upper home

The better option for you depends on the combination of your appetite for risk, how much time you have, your level of know-how (are far as home remodeling is concerned), and of course, how much money you have. Below is a list of the pros and cons of both options.

Fixer-upper home

Move-In Ready Home