Welcome, we will explore a topic that many homebuyers struggle with Fixer-Uppers vs. Move-In Ready Homes. Which one is the right choice for you? Let's break it down and find out. Let's get started!

When it comes to buying a home, you generally have two primary options: a fixer-upper, which may need some tender love and care or in short TLC, and a move-in ready home, which is ready for you to settle in from day one. Each option has its own set of pros and cons, so let's explore them in detail.

First, let's talk about fixer-uppers. These homes typically need repairs or renovations but can offer unique opportunities. Here are some key benefits:

Lower Initial Costs

Fixer-uppers are usually priced lower than move-in-ready homes, which can make them more affordable upfront. Since the home would require updates, you will have the upper hand in negotiation and would be able to get it at a reasonable price, irrespective of the market conditions. There are always fewer takers of properties which need some work, and that is where you score if you have finances, resolve and time on your side to take up the project.

Customization:

You have the freedom to renovate and design the home to your exact preferences and needs. There is no need to settle with aesthetic choices which previous owners have made. The painting, flooring, kitchen cabinetry, bath vanities, lighting, ceiling finishes, door inserts, appliances etc. Everything would be based on your choice and how you want to define the aesthetic of the home.

Potential for Equity:

With the right improvements, you can significantly increase the home's value, building equity swiftly. At the time of dispensing the property, all of this equity can be realized.

When we speak about the challenges for Fixer-uppers, they have a fair share, they need a lot of cash and sweat equity which is needed to plan, manage and execute the renovations. This whole process requires money to pay for the labour plus material along with the opportunity cost during the vacation time when the property is empty and being built. In fixer-upper projects, there is also a fair potential of discovering some unforeseen issues, which might increase the overall project cost.

Now, let's shift our focus to move-in-ready homes. These properties are fully updated and require no immediate work. Here are the benefits of choosing a move-in ready home:

Convenience:

You can move in right away without worrying about renovations or repairs. The whole premium paid is for this ease of living right of the bat after closing on the property.

Predictable Costs

There are fewer surprises with move-in ready homes, so you can budget more accurately. With the renovations, the previous owners would have majorly taken care of other issues as they surfaced.

Of course, there are some downsides to consider as well: Move-in ready homes typically come with a higher price tag compared to fixer-uppers, there is always a premium for that shiny kitchen and quartz counters with built-in appliances, the custom glass shower enclosures in bath, or the spic and span interlocking on the driveway. The customization opportunity to tailor to your taste is limited, as you are less likely to delete a recently replaced floor or fresh painting with a new one, and would wait for some time to do any net new updates. And, finally, the potential for up-side is less, the possibility of increasing the price of the property with some updates is limited as already premium is paid for the reno's in the home.

Here you can see a quick comparison between these two approaches. There is no right or wrong answer, if you are willing to invest some sweat equity into the project want to have additions as per your liking, and have some cash on hand to implement the updates, its always beneficial to buy a non-updated asset.

If you are of the kind where you need something ready to possess and start enjoying from day one, or have limited cash reserves, the ready-to-move-in properties should be your go-forward path. At Elixir Real Estate, we're here to help you navigate the process and find the perfect home for your needs. Have any questions about fixer-uppers or move-in-ready homes? 

Remember, buying a home is a significant investment, so take your time and do your research. 

Wish you all the very best! Reach out to our dedicated team at Elixir with any queries you have about real estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Off: 416-816-6001 | [email protected]