The Arizona housing market is always booming. The region's natural beauty and climate make it an attractive place for people to live. People can freely explore the parks, golf courses, and other features while enjoying a lower living cost.
Arizona has everything you could want if you're into breathtaking sunsets, majestic mountains, and many other awe-inspiring amenities. It is a place where everyone can get more bang for their buck. However, there is room for improvement regarding the ultra-luxury dream home you've been waiting for. Choosing between buying a new home or renovating a new-to-you one to make it perfect can be challenging for some.
Both have pros and cons, and Trish Gore is here to help you make the best financial decision. Whether you want a move-in ready home or a home needing a little TLC, we can help you decide on your new luxurious home. Just join us as we discover the benefits of choosing between revamping and acquiring a luxury home.
Why consider revamping a home
You may think you're settling for less by buying a well-used home, but there are many significant reasons to do it, and all of them are positive reasons. For instance, you can gain:
More square footage
Money and space matter when searching for a home. If you are looking for a million-dollar home, the price per square foot and the house's luxury may increase. According to Phoenix Agent Magazine, in July 2023, the average price per square foot was $252. This can add up quickly and leave you with a home that isn't as extravagant or as glamorous as you may want. Contrarily, buying a home that needs a few minor repairs can drop your price per square foot. This can allow you to buy a larger home for your investment and have room in your budget to increase space or add the posh necessities you want.
The ability to customize
Finding your perfect home in a turnkey setting can be very difficult. Even when looking at the most lavish homes, there may be areas you feel "could be better" unless you have a custom home built to your preferences. The custom home option may work for some, but it can be a longer process with a higher cost.
If you find a home that needs a little TLC but checks off most of your must-haves, you should have money left to ensure it checks all your boxes. It provides you with a canvas of potential beauty.
Prime neighborhoods
Waiting for a turnkey home in your preferred neighborhood can be frustrating. It can require you to settle for something close by. However, opening your options to include a home restoration project may give you access to your preferred location.
It may enable you to move into a more upscale neighborhood than your allotted budget could give you. This could mean more property for your home, more privacy, and many other benefits.
Less competition
Approximately 77% of buyers want a move-in ready home and will not settle for anything less. In an area with an enormous demand for homes, this can lead to higher housing costs. Fixing up an older home can lead to a better investment property with more flexible prices since fewer people look at it.
Lower property taxes
When you buy a home, the local tax authority determines your taxes based on the home's sale price. This may lower closing costs because the house has a lower estimated value. The downside is your property taxes could increase again as you improve your new home.
If you stumble across a historic home, you can save even more money while earning discounts through the Investment Tax Credit Program. This means you could get a 20% income tax credit for renovating and rehabilitating the home.
Cons of buying a restoration home
Before deciding if a home remodeling project is your best option, you should know the potential obstacles. Knowing what you may get into can lessen the risk of frustration as you move forward. Some considerations include:
Surprise issues
Home inspections are valuable to anyone considering a home purchase. It is even more vital if you're considering an older home. You wouldn't want to invest your money in a home only to discover it has extreme issues that may drain your budget. A home inspection may allow you to negotiate a lower price for the home, which can offset the repair cost. However, some issues might arise that a typical home inspection wouldn't catch. Therefore, you might hire inspectors to check certain areas of the home specifically. This may include structural, electrical, and other specialties.
Time considerations
If you're searching for your next home because you need a place to live, fixing up a home may not be a fantastic option. Renovations can be time consuming. Few people want to live in a home while significant renovations are happening.
Limited financing options
Taking out a mortgage loan may not help you with repair costs. This may leave you paying out-of-pocket unless you can get assistance through the U.S. Department of Housing and Urban Development or similar programs.
All these issues can be stressful. Restoring a home is the ideal solution for many, but it is essential to know repairs can take months or years to complete.
Before making your final decision, it may be helpful to consider:
- How much can you DIY?
- How much time can you invest?
- Will the low purchase price leave room in your budget for necessary repairs?
- Where will you live during renovations?
- Will you hire a contractor?
- What are the permitting requirements for your renovations?
There are no right or wrong options. It would be best if you chose based on your requirements. A home renovation is not something every new homeowner is ready to embrace.
Is a move-in ready home best?
Currently, throughout Arizona, there's an abundance of homes waiting for someone to love them, and many are ready for people to move into them today. Choosing a newer or previously restored home can give you an enjoyable space immediately. It will be:
- Complete. Nothing will need to be done before you can live in it comfortably.
- Modern. Most move-in-ready homes already have updated appliances, intelligent controls, and other features.
- Pleasant amenities. If a house is already complete, you may find it already has hardwood flooring, upscale kitchen layouts, and other benefits you're seeking in a home.
The cons of a newly renovated home include a higher price point for ownership and a loss of customization options. This may be unimportant if all your wants are flexible, and you can sacrifice an extra bedroom for a glorious outdoor living space.
Explore all your home options
Choosing between revamping and acquiring a luxury home is never a simple decision for people to make. Each option has pros and cons and an abundance of homes to choose from. Regardless of your desire, Trish Gore can guide you in searching for your dream home in Scottsdale, Ariz. Tell us what you're looking for and what your budget is. We will help you discover the most luxurious space.
