Thinking about buying a home in 2025? You're in good company. A recent survey by NerdWallet found that a record 15% of Americans—about 39 million people—plan to purchase a home in the next year. However, with a limited housing inventory, competition is fierce. If you're in the market for a new home, you may need to broaden your search beyond just location and price to consider the condition and type of property you want.
Should you buy a move-in-ready home, build a new house, or take on a fixer-upper? Each option has its benefits and drawbacks. Here's what you need to know to make the best decision for your needs and budget.
Related Read: Why Now is the Time to Buy in Sarasota's Housing Market
Buying a Turnkey Home
Pros:
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Move-in ready with little to no work needed.
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More financing options available compared to renovation loans.
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The most convenient choice for buyers who don’t want to deal with repairs or construction.
Cons:
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Highly competitive market, making it difficult to snag a deal.
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Homes in great condition often sell quickly, sometimes leading to bidding wars.
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May need to compromise on location or features to stay within budget.
Pro Tip: If you're set on a turnkey home, be prepared to act fast. Get pre-approved for a mortgage and work with a knowledgeable real estate agent who understands your must-haves and financial limits. If homes in your area sell above asking price, consider looking at properties slightly below your maximum budget to allow room for competitive offers.
Related Read: Top Real Estate Sales in Siesta Key, Longboat Key, and Bird Key
Building a New Home
Pros:
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Customization options, from layout to finishes.
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Potential for builder incentives, such as interest rate buy-downs or upgraded features.
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Less competition compared to buying an existing home.
Cons:
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Longer wait times, as construction delays can push back move-in dates.
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Potentially higher costs, especially if building from the ground up.
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Limited location choices, especially if buying in a new development.
Pro Tip: Understand your financing options before committing to a build. If you're working with a custom builder, you may need a construction loan, which often requires a higher down payment. If buying in a new development, compare the builder’s financing offers with other lenders to secure the best deal.
Related Read: Market Update: Surging New Construction Projects Signal Positive Outlook
Renovating a Fixer-Upper
Pros:
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Often more affordable upfront, allowing you to buy in a better location or get more space for your budget.
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Opportunity to customize and increase the home's value.
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Potential to make energy-efficient upgrades or preserve unique architectural details.
Cons:
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Renovations can be time-consuming, costly, and unpredictable.
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May need to find temporary housing if the home isn’t livable right away.
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Unexpected issues can arise, adding to the total cost of renovations.
Pro Tip: Before buying a fixer-upper, work with a contractor and home inspector to get a realistic estimate of renovation costs. Consider financing options like a renovation loan, which can cover both the purchase price and renovation expenses in a single mortgage.
Related Read: Contrary to Forecasts, Home Prices Rebound, Defying Predicted Crash
Which Option Is Right for You?
The best choice depends on your budget, timeline, and willingness to take on projects. If you want a hassle-free move, a turnkey home is ideal—but be ready for competition. If customization is your priority and you can handle the wait, building new might be the way to go. If you're open to rolling up your sleeves and making improvements, a fixer-upper could offer the best value.
No matter what path you choose, working with an experienced real estate agent can help you navigate the process and make a smart investment in your future home.
