The Fixer-Upper Fantasy vs. New Construction Reality: Which Is Right for You?
The Fixer-Upper Fantasy vs. New Construction Reality: Which Is Right for You?
Image courtesy of Shutterstock/Snezana Ignjatovic.
If you’re a fan of HGTV, you no doubt are aware of the many shows that feature “fixer-upper” homes and their magnificent renovations. These shows excel at romanticizing the idea of buying a fixer-upper and transforming it into a dream home. But if you have any experience with fixing up older homes, you know the reality is more often a nightmare than a dream, and the end result rarely aligns with your original vision.
The Challenges of Fixer-Uppers
There are many barriers to transforming a fixer-upper into your dream home – financial constraints, lack of know-how and time, or the sheer magnitude of the work required. Many buyers realize too late that, rather than buying a fixer-upper, they’ve ended up with a money pit. This is not to say that existing homes are always money pits or that buying a fixer-upper is always a mistake; depending on the people involved and the work required, either choice can be completely right for the situation. But for those of us who don’t have great DIY skills or the time or money to buy a house and then renovate it, buying new construction is a simpler way to make your dream home a reality – and it can usually be done faster, at a lower cost, and with less inconvenience than renovating a house.
The ‘New or Existing’ Question
When it comes time to move, one of the first questions you’ll face is whether to buy an existing home or new construction. Not all existing housing stock are fixer-uppers. It’s certainly possible to buy an existing home and not have to repair a thing, though chances are high you’ll have to put some kind of work into the home within the first few years of moving in, whether that is planned (replacing carpeting) or unplanned (a leaky toilet).
Fixer-uppers, on the other hand, are traditionally defined as properties that need substantial repairs or renovations to bring them up to market price. They may be inhabitable, but sometimes aren’t. Due to the substantial investment required, these homes are typically priced well below comparable homes in the area. Buyers looking into resale homes acknowledge these repairs and factor those costs into their homebuying decision, perhaps settling for a smaller house or one they don’t 100% love to reduce their mortgage amount and save money for repairs.
Buyers who choose new construction don’t necessarily have to factor these costs into their budget because new construction homes come with builder warranties, appliance warranties, and mechanical warranties. The chances of unexpected expenses in the first five years are much lower, lifting a financial burden and giving you time to build an emergency fund.
Why New Construction Makes Sense
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Your Costs Are Set
When buying pre-built new construction, your costs are finalized upfront. Builders account for upgrades and location, unlike existing homes where inspections may reveal costly repairs.
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You Can See It Now
Renovation budgets often spiral due to changing plans. As noted by Prashanth Pathy, a real estate agent in Chicago, “Homeowners don’t know exactly what they want… wishes change, materials change, and budgets blow up.” New construction lets you tour model homes or view finished properties to avoid surprises.
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No Surprise Expenses
Earl Correll, president of On Point Custom Homes, emphasizes that large-scale renovations often uncover hidden issues like plumbing or structural challenges. New construction eliminates these risks.
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Turnkey Living
Renovations mean living in a construction zone or delaying your move. New construction offers a move-in-ready home, saving time and stress.
Your Dream Home Is Out There
While fixer-uppers promise the allure of customization, new construction provides a streamlined path to homeownership. By exploring all options – new and existing – you can find a home that fits your budget, timeline, and vision. Start your search today at Pre-ConstructionHomes.com!
