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What is a Turnkey Home?

Alcove Team | 12/18/21

What is a Turnkey Home?

Are you interested in buying a turnkey home? You probably have heard of the term, but you might not be fully aware what it means. This is the perfect article for you as we will answer all your questions about what is a turnkey home!

What is a turnkey home?

In order to get started, we need to provide a brief description of what a turnkey home is.

A property that is ready to move-in immediately, without the need of any major renovations is generally known as a turnkey home.

In most cases, a turnkey home has already been restored before it is listed on the market for sale. 

Pros of a Turnkey Home

First we will look at the advantages of buying a turnkey home: 

  • Immediate move-in

    The main reason why people choose a turnkey home is the immediate move-in date. If you are pressured by time and need to move out and looking for a new place, a turnkey home might be perfect for you.

     

  • You do not like renovations

    These properties are the perfect choice if you are not interested in buying a fixer-upper. If you do not like renovations and home improvements, you better go for a turnkey home

     

  • Turnkey home as an investment

    If you would like to invest your money into the housing market, a turnkey home is a great option. You can find a flat or a house that is already fully renovated and ready to be rented out. You'll need to put 20% or more down payment, however

Cons of a Turnkey Home

Next, we also have to cover some of the disadvantages of buying a turnkey home: 

  • Expensive

    Having a fully remodeled and ready to move-in house comes with a higher price tag as well. You would have to be prepared to pay additional, especially in the current seller's market.

     

  • No personal touch

    If you prefer being part of the process of designing your future home and would like to add your personal touch into the layout, a turnkey home may not be the right choice for you.

     

  • You still need inspection

    There is a general misconception that buying a turnkey home means that you do not need an inspector. We strongly advise that you still request an inspection, because what seems perfect on the outside, might not be the case once you look into the details. Especially, if you are looking into an older property, you would want an inspector to look at the electric, plumbing, and HVAC systems!


Now that we have answered the question of what is a turnkey home and we have covered some of the main pros and cons of such type of properties, it is up to you to decide if this is the right type of home for you.