Why You Shouldn’t Buy That Perfectly Renovated Home

Why You Shouldn’t Buy That Perfectly Renovated Home

I want to start this one off by saying this is a topic I’ve come to feel extremely passionate about, so hear me out - I promise you won’t regret it.

Though it may seem a bit controversial - especially coming from someone who is part of a generation that thrives on instant gratification - a completely renovated, move-in-ready home is not my go-to recommendation for my clients when it comes to their real estate investments (which let’s face it, every home purchase is an investment at the end of the day). Now don't get me wrong, a gorgeously updated home definitely has its perks. It's like buying a cake from a renowned bakery instead of making it yourself - you can just dig in and enjoy, without having to worry about all the baking stuff or the messy kitchen. So why would I tell you not to buy the nicest house on the block?

Let's break it down. When you invest in a move-in-ready home, you're paying top dollar for someone else's hard work. And yes, that can be super convenient, especially if you're strapped for time or just not into DIY projects (don’t worry, we can still be friends even though I love a good DIY project). But think about it - those upgrades and renovations that make a home move-in-ready will absolutely be factored into the price tag, with additional dollars tacked on just for the above-mentioned “convenience.” You are guaranteed to shell out way more than if you took on some of those projects yourself.

Which leads me to my next real estate buzzword: Equity. If you are buying that perfectly renovated home, you are relying on time alone to increase the value of that investment; and timing, especially in the real estate market, can be a b*tch (sorry mom). Of course, given enough time, your homes’ equity is sure to increase. But what do you do when your life plans change and you need to move after only owning that home for a short period of time? Maybe you are having another baby, or maybe you have to relocate unexpectedly for a job… Life happens, often at the most inconvenient times, and we simply can’t control that. That’s why I feel so strongly that purchasing a house requiring some improvements, over that fully renovated one a few doors down, is a way better investment. It gives you the option to add value to your home by finishing the basement, doing some kitchen updates, replacing the floors, adding a garage, etc. Now, you have taken back some control over your home’s value, and can build some equity for when you need it most, rather than just relying on an unpredictable real estate market to do it for you.

Now, I'm not saying that buying that fully renovated home is a bad move for everyone. In all honesty, it’s what most people are looking for when buying a home (which is why they generally sell more quickly or end up in a bidding war). All I’m suggesting is to keep an open mind, and simply consider your options, priorities, personal preferences, and stage of life before you rule out those homes that may need a bit of work from your home search. Sometimes, the road less travelled can lead to some pretty sweet rewards - so long as you have the vision for it!