Turnkey homes are becoming an interesting point of focus in the real estate world, but that doesn’t mean that you need to jump on board immediately. Selling a turnkey home is a process that comes with plenty of benefits, but that doesn’t change the fact
that it might not be a good option for everyone. Still, if you are looking to make your home turnkey before selling it, you might end up with some pretty great results. In this article, we will discuss what a turnkey home is and how it can influence
Defining Turnkey in Real Estate
A turnkey home is a home that
is designed so that the new owner only needs to “turn the key” to begin moving in. While you might think that this is every home, that isn’t actually true. A lot of homes require some version of additional work before someone can comfortably move
in and start living their life at a new location. Upgrades, renovations, and new-home fixes can all make the moving process more complicated for the new owner.
When a home is turnkey, it means that absolutely no changes need to be made. In most cases, this also means that the home is completely upgraded. A turnkey home should have modern appliances, fresh paint, and should offer that distinct new home feel.
Some of the more impressive turnkey homes even offer a fully furnished setup. These furnished homes, which are referred to as “staged” can make it possible for someone to simply walk in with their personal property and start living comfortably immediately.
The Benefits of Selling a Turnkey Home
Turnkey homes are becoming more heavily sought out by new homeowners because of their convenience. Since this is the case, making your home turnkey might help you to make the sale faster. It gives you a unique edge over the competition by offering additional
convenience for the potential buyer.
A major benefit of preparing a turnkey home is the fact that they can be sold for more money. Since the home will already be modern and in good order, you have really solid ground to stand on to begin price negotiations.
When selling a home, it is fairly common for potential buyers to use fixes to talk down the price. Negotiating the sale price when you have a turnkey home is almost always tilted in your favor. The home won’t require any upgrades or repairs, which means you are able to demand a certain price and won’t have to worry about being talked
down. Additionally, since you are offering a modern home with important upgrades that won’t require anything from the buyer, you have the ability to ask a significantly higher price. Offering a modern home allows you to market the home specifically
for its turnkey status, which can sell for more than a standard home might.
The Cons of Selling a Turnkey Home
Turnkey homes can offer some fairly distinct benefits, but there are still some challenges that you will need to address in order to do this. To start, you will be responsible for making the upgrades and renovations. Depending on the current state of your home, these upgrades can be costly and time-consuming,
particularly if you are offering a fully designed home with furniture and other key perks.
Given the financial investment,
it is important to consider the potential risks. There is a chance that the upfront investments that you make will not fully come back to you. Since standards and preferences change, you might invest in upgrades that do not attract the kind of attention
that you would expect. If it takes a long time to make the upgrades, you run an even bigger risk of the changes being outdated by time you make the sale.
Some homeowners make the decision to put their home on the market with the intent of making the home turnkey before it is completed. If you do this, you will run into the potential risk of a time crunch. In the event that someone wants to move sooner
rather than later, you might find yourself speeding up your renovation schedule. Since this will be part of the agreement, if you cannot manage the changes in time, you may lose the sale completely.
Is it Right for You?
Selling a turnkey home can be a beneficial opportunity, but it isn’t a good fit for everyone. In the event that you find that making your home turnkey would be a financial burden, it is best to avoid this option. While it can help you to make the sale,
there is no guarantee. If you decide to overextend yourself with the investment, you run the risk of financial trouble at a later date.
If you are looking to make more on the cost of your home and have a fairly open timeline, as well as financial freedom, you can benefit from this option. It allows you to improve your chances of making the sale and can even help you to make more than
you spend on upgrades. Even better, this decision might help you to appeal to a wider audience of people who are looking for homes with modern upgrades specifically.
Is it Necessary?
Turnkey homes can come with a wide range of sales benefits, but that doesn’t make it a necessity. Plenty of homeowners successfully sell their homes without having them being fully turnkey. Even though it is becoming more popular, the reality is that
it is more of a nice-to-have than anything else. Unless the benefits of this approach distinctly speak to you, you should not worry about meeting this status. It is not necessary for a home to be turnkey to be sold, even if it can help to make the
sale. Homes can be sold in any state and at any location. There will always be those who will be happy to make the purchase.