Remodeling vs. buying new - which one is better?
When buying a home, it is no secret that you want to get the best deal for your money. As a real estate professional, you should be able to answer any question regarding homes that is thrown your way. That’s why when a client inevitably asks you, “is it better for me to buy a new home or pursue remodeling a fixer-upper?” you should be prepared.
Pros of buying new
While an up-to-date home will be more money to begin with, everything will be there ready to go: appliances, fixtures, roofing, foundation – you name it. The starting price will definitely be higher than one that needs refurbishing but it will be less work on your part. You will be able to move in comfortably with no extra hassle (well, except for unpacking, which is a hassle in itself.)
Cons of buying new
Expense. In the long run, it may actually be cheaper to remodel if you are savvy with materials. Depending on factors such as how recently amenities have been updated, the location the home is in, and the overall size of the home in general, you may be paying more money than you anticipated.
Pros of remodeling
Buying a foreclosure, or a home that simply needs a lot of fixing up, will undoubtedly be much cheaper than buying one that is already fitted for living. You may only have to pay a fraction of the price that you would have to pay for a new home. Plus, if you are a hands-on kind of person, you’ll get satisfaction out of knowing that you improved your home yourself.
Cons of remodeling
Labor. Fixing a home takes a lot of work, especially if it is severely run-down. If you are not someone who is used to hard-labor or extended projects, than remodeling a home may not be for you. In addition, depending on how much money needs to go into the home in order to fix it, you may be paying almost as much as you would if you had just bought a home new.
Which is better?
In the end, it all comes down to preference. You can’t give your client a definitive answer on which one is the better option over the other, but you can give them the facts and let them make a decision on their own. It is all dependent on what they are willing to pay, and the work they are willing to undertake.