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There are a lot of factors for you to consider when house hunting and preparing to own your own home. As you assess your budget, necessities, and wants, you’ll also have to decide between a move-in ready home or a fixer-upper. Both have their own unique advantages and disadvantages. To help you make your decision, let’s take a closer look at what each of these statuses mean and what your financing options are.
A fixer-upper is a home that requires extensive maintenance or renovation work. These homes are often sold at a lower purchase price than neighboring properties because of how much work is required. Every fixer-upper is different. Some may only need aesthetic updates while others may need structural repairs.
When house hunting, homebuyers may need to determine what house features are necessary for their lifestyle (a need) and what they could live without (a want). However, you may not have to compromise with a fixer-upper. Although you won’t necessarily be building from the ground up, you may still be able to create your dream home. You’ll have the freedom to create spaces that perfectly align to your home goals without having to compromise on the layout.
When comparing purchase prices, a fixer-upper will generally have a lower listing price than move-in ready homes. In fact, according to an article by Realtor.com from September 2025, fixer-uppers were priced 54.2% lower than the median single-family home in the United States. Homebuyers are willing to pay more money for a home that has functional appliances, HVAC systems, lighting, and other features associated with a move-in ready home.
Rather than juggling a monthly mortgage payment and a home improvement loan or using out of pocket funds for improvements, a homebuyer will only have to make a singular monthly payment when purchasing a fixer-upper with a renovation loan.
Living in your fixer-upper during renovations can feel like you’re spending all day in a construction zone. It can be stressful, making certain spaces inoperable or unavailable for several months. During structural repairs or upgrades, you may have to live elsewhere until work can be safely completed. Some buyers may opt to live with family, while others spend money on a temporary rental unit or hotel.
According to Today’s Homeowner, 47% of buyers overspend when purchasing a fixer-upper home. Hidden problems, such as structural or electrical challenges, finishes, labor delays, and material delays are all common reasons a person may go over their initial budget. Experts advise homebuyers give themselves an additional 10-20% of funds for budgeting wiggle room.
Return on investment, also known as ROI, is a ratio used to evaluate the financial profitability of a home’s renovations and upgrades. However, some renovations or upgrades have higher value than others. A seller of an updated fixer-upper may find that some of their most beloved additions don’t align with the appraised value of home or what homebuyers really want.
A move-in ready home refers to any home or property that requires little to no immediate repairs or renovations. Quite literally, they are homes that are ready for their new owners to move in. The definition can vary depending on who you ask, but turnkey homes, quick move-in ready homes, and typical move-in ready homes all fall under this definition.
If you’re on a short time frame to get settled in or sell your previous home, a move-in ready home may prove to be a better option than a fixer-upper. After you sign your closing documents, the only thing you need to worry about is unpacking.
You won’t have to worry about the structural integrity of your home or whether your appliances work when purchasing a move-in ready home. While some items may be outdated, you’re less likely to need extensive maintenance to make your home match your needs.
In addition, the mortgage process is more streamlined than purchasing a fixer-upper home. Instead of using a renovation loan, you may have more loan program choices, including conventional or government-sponsored programs.
In general, costs are more predictable for a move-in ready home when compared to a fixer-upper home. Because you won’t need to worry about immediate repairs or changes, you can give your finances a bit of a breather after closing.
Because a move-in ready home is fully prepared for new owners, it can be expensive. You’re paying for working systems and the convenience that comes with a functional home.
When compared to a fixer-upper, it’s much harder to change the layout of a move-in ready home. Changing the floor plan to add another bedroom or bathroom can be difficult and costly. While you can always repaint or adjust fixtures, you’re paying for the updates and finishes chosen by previous owners.
Move-in ready homes can attract a lot of buyers, especially if the property has energy efficient features, working electrical and HVAC systems, and was well maintained. When you’re submitting an offer, be prepared to work against other offers. During a seller’s market, bidding wars for homes are common, so it’s important that you work with your Real Estate agent to create an offer that’s too good to ignore.
Whether you’re planning to purchase a move-in ready home or a fixer-upper, your choice of mortgage financing matters. We offer our borrowers a variety of loan programs to better help serve their needs.
Move-in ready homes can be purchased using a variety of mortgages, including conventional loans. Additionally, government sponsored programs, such as FHA, VA, or USDA, may also be available, depending on your eligibility. We also offer conventional, FHA, and USDA renovation programs to our borrowers.
Using a renovation program for a fixer-upper property allows a buyer to combine the costs of their restoration projects and mortgage payment all wrapped up into one monthly payment. This allows you to focus on what’s important: creating your dream home.
As your mortgage lender, we promise to work hard to make your home financing dreams happen. Ready to start a pre-approval? Contact us today!
McGlone Mortgage Group offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.
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