RENOVATE OR BUY TURNKEY?

“Should I buy a home that is turnkey or one that needs some renovation?”  This is often an important decision factor for prospective second-home buyers.  In the past few years, the low level of inventory, has made this question even more critical, as buyers have less selection and have to make trade offs that they may later regret.

The most obvious difference between a turnkey and one that needs some updating is the initial cost.  When you buy a turnkey home, you are paying for the time and investment of the current owner.  You are also opting for the style and taste level of the owner.  When you buy a home that needs renovation, you are making an investment of time and money in the home, but you will have input into design and quality decisions that suit your taste level and pocketbook.

Some buyers prefer to buy a home that does not need any work and recognize that they may be paying a premium but prefer to have the use of the home sooner rather than later.  If the trade off is a higher price that you can afford, all other things being equal, it’s probably a good decision for you.

But sometimes, the trade off may be a very important requirement that gets lost in the decision-making process.  When a buyer finds himself/herself giving up desired location for “pretty” – it’s time to stop and reassess.

“Location, location, location,” is a real estate adage that holds true for every purchase and never gets old.  It’s probably the best advice I can give any buyer – when you have a choice between a great location and a fantastic looking house – STOP – and be sure you will be happy in that house 2-3 years from now, or will you be pining for that waterfront or water-view location?

When buying a home in need of improvements, it’s important to be sure the renovations add value. Will you get a return on your updates?  Certainly, there is the non-tangible return of enjoying the redesigned room, or bathroom, or adding a pool, but it’s also important that there is a tangible improvement in value.  In most cases, thoughtful, tasteful updates add to the market value of a home and faster turnover when its sold.

On a personal note, we have always purchased homes with the intention of making improvements and it has always paid off. 

Sometimes, there is a wonderful home that needs no renovation and sometimes there’s that diamond in the rough that turns into a sparkling jewel – it’s for you to decide.

We would be happy to help you evaluate whether to buy turnkey or buy and renovate.  If you choose to renovate, we’ll assist you with professionals to help you get the job done and move into a home, where you want it to be and how you want it to be! Call us at 631 765 5333 or come see us at our office at the corner of Main Road and Horton’s Lane in Southold.