Many homeowners plan to cash in on the sky-high prices of homes across the country. Even in a seller’s market, not all houses are created equal. With millennial buyers entering the market, turnkey homes are becoming increasingly more popular. To sell your house for top-dollar, you need to familiarize yourself with the characteristics of turnkey homes.
What is a turnkey home?
A turnkey home is a property that is ready for move-in without any necessary upgrades or adjustments. These properties are newly built or renovated to feel new. It’s attractive to buyers who don’t want to spend time and money updating once they move in.
Families can move in and settle without noisy construction going on inside or any daily inconveniences while working remotely. It’s also becoming a trend for investors who want to rent out properties immediately to avoid vacancy costs. Regardless of the situation, people see value in turnkey homes.
No updates necessary
Nothing screams brand new quite like a shag rug or that white refrigerator from your grandma’s house. In all seriousness, a turnkey home is already updated. Everything from flooring replacements to new appliances have already been taken care of. These updates focus on the most desirable features within a house.
- New appliances
Stainless steel kitchen appliances create a modern feel that ties the kitchen together. Homeowners also expect energy efficient washers and dryers that maximize space.
Countertops serve as crucial bathroom and kitchen features in any home. Depending on the neighborhood this may range from granite to quartz or marble.
No kitchen transformation is complete without cabinets. Along with their practicality, they also help create contrast with other features such as countertops and flooring. You can paint already existing cabinets, but no one would complain if they were brand new.
Options abound for flooring depending on the budget, location within the house, and availability. Most houses have either laminate or hardwood flooring, which comes in various colors and plank sizes. Surfaces in the kitchen and bathroom may have more durable options like tile.
The appropriate design decisions will make a home pop on the MLS. Paint is a primary example of how to create a blank canvas for potential buyers. Neutral colors and shades of white allow people to envision themselves in the space.
They sell quickly
It should come as no surprise that turnkey properties on average sell faster than other home listings. While there are a variety of reasons and market factors that play into this, these are some of the top reasons.
Stand out on the internet
Although cliché, a picture really is worth 1000 words--especially online.
When a property comes up on Zillow or the MLS, pictures serve as a first impression. If a buyer sees chipped kitchen cabinets, old carpet or poorly kept landscaping, they’ll likely scroll to the next option. Many people have a hard time looking past these imperfections, causing them to sit on the market.
In contrast, a newly renovated home with stainless steel appliances and beautiful countertops will garner attention. This leads to higher open house attendance, which in turn increases the likelihood of an offer-- or multiple. Due to increased demand and low supply, some turnkey properties even receive offers prior to open houses.
Hold the surprises
Homes that take a while to sell are often due to red flags and timely renovation projects needed to complete. Only certain homebuyers are willing to put in the time and work to optimize the house to their liking.
With turnkey homes, buyers know what they’re paying for. There are no foreseeable kitchen projects or extreme home makeovers because they’ve already been done. For the same reason, inspections tend to go a lot smoother.
People are willing to spend more
Turnkey homes generate interest from large pools of potential buyers. It’s common for bidding wars to ensue, driving up prices. This is great news for the seller, however, in the end only one family can win the bidding. So what happens to everyone else?
A turnkey home has the potential to increase the value of entire communities. Buyers who miss out on one house are still likely going to look for other properties nearby if the location is desirable. As more homes in the area sell, neighbors may see that they can earn more by renovating, continuing the snowballing effect.
Make an informed decision
Understanding buyers can help inform your decisions as a homeowner. By knowing the key characteristics of turnkey homes, you now know what it takes to sell for top-dollar. While it may seem like more effort to produce a turnkey home, renovation doesn’t have to be this way.