“Turnkey” home listings have experienced a recent jump in popularity specifically on the West Coast. The term “turnkey” refers to those properties which require no renovations or repairs. The house is ready to move in – everything inside it is part of the asking price. West Coast realtors, including yours truly, have found when it comes to home sales, these types of homes are ‘turning’ home listings into fast closings. As a realtor, I thought you’d find it interesting to hear my unique perspective on turnkey homes. While in years past, the trend leaned more toward building a home to exact specifications, now as the market finds a new resurgence, turnkey homes are indeed ‘in’ again.
What Realtors Say About Buying Turnkey
Although turnkey listings tend to be a bit more expensive than traditional home listings, buyers like this option because once you close on the home your expenses are essentially complete. A recent article on MSNBC says that there has been an increase in popularity—mainly on the West Coast and in vacation communities—for turnkey properties. In the article titled, Where to Find Turnkey Homes, Susie Nancarrow, broker and owner of Nancarrow Realty Group in San Diego County is quick to point out though that turnkey “isn’t necessarily synonymous with move-in ready.” She says:
… a 1970s-style house in great condition isn’t turnkey because it’s dated. I usually use ‘turnkey’ when the house is up-to-date with today’s buyers’ expectations.
At the end of the day, the process is much simpler. There’s no need to imagine where the children’s room will go, how you will renovate. View real estate listings, choose the home you fall in love with, make an offer, close and the best part awaits. Put the key in the lock, turn it and voila, you are home.
The Benefits of Buying Turnkey Real Estate
The real reason a buyer wants turnkey-ready is two-fold. The buyer may be a very busy executive with very little time to remodel. With interest rates at an all-time low– the prices while a little higher than traditional home sales are still very low. The buyer is then more willing to pay a premium for this type of home.
Home buyers understand that to remodel a home they will need a minimum of 20 percent down to purchase it in addition to the money it will cost to then do the remodel. So the idea of only paying for the home with no additional costs can be attractive. If a kitchen needs a remodel for example, this could cost the home owner another $50,000 to $75,000.00. To redo windows for example, it could cost $20,000. To upgrade to central heating/air, it could be another $15,000.00. If a buyer only remodels the bathroom, it could cost upwards of $10,000 and $25,000.00 just to remodel the master bedroom. These are estimates of course, depending on the size of the home, but one can clearly see the benefit and savings based on these examples, in choosing a turnkey home.
Is there a down-side to buying a turnkey home? Not really – if there is, maybe one could say “it doesn’t have my personality stamp”. But the truth is, if you fell in love with the home in the first place, it does – it must speak to some aspect of your personality and personal taste! And there is no saying down the line, you can’t make changes or add special touches. But truly, if you’re buying a vacation or a holiday home or even buying your first home, this is a good move. I think especially if you must move in a hurry for a job change, a turnkey home can be the perfect alternative to a traditional option. So there you have it –just one realtors perspective. Good luck on your home search whether it’s for a turnkey home in Westlake Village, a mansion in Calabasas or a condo in Thousand Oaks, your home is wherever your heart is!
For more on “turnkey homes” or to view property listings in the Conejo Valley, contact Lydia Gable today.