What You Need To Know About Turnkey Homes

Many buyers are choosing to buy turnkey homes, and for good reasons.

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Why are buyers interested in purchasing turnkey homes? For those people that may not be familiar with this real estate term, a turnkey home is one that doesn't need any type of improvements, so someone can move right in. There are a few reasons why buyers would want to buy this type of home, and today I’m sharing a few of them.

1. They have a new-home feel. Turnkey homes are staged, clean, and smell nice. They are often an emotional purchase, which appeals to many people who want their properties to be perfect. Then the buyer doesn't have to do anything other than move their clothes in, put some furniture in, and make the house their own.

2. Fewer transactions to deal with. With these properties, buyers don't have to deal with city permitting, hiring contractors, spending additional money, making more decisions, etc. Homeownership is a long process and takes a lot of effort. For someone who may have a busy work or family life, they just want to keep it simple. Making sure that the house is already ready to go is the best possible option for them.

"When buying turnkey homes, you should always still get a home inspection."

3. Less stress for investors. Investors are looking for turnkey properties so that they can just close escrow, get the keys, and immediately start renting the property out. It's an income property, and they want to start making rental income.

When buying turnkey homes, you should always get a home inspection. They range anywhere from $300 to $600, depending on the size of the house. Your home inspector will point out if there are things that could cost you a lot of money and headache in the future, whether it's a primary residence or an investment property.

Home inspections are worth the money, and you'll be able to figure out if there's anything truly wrong with the house. Even though it looks great, there still may be some fundamental problems with it.

If you have any questions or comments about turnkey properties or real estate in general, feel free to reach out to me either by phone call, text, or email. I look forward to hearing from you soon!

Are These Home Buying Myths Preventing You From Making a Move?

Today, I’d like to address two common misconceptions people tend to have about purchasing a home in our market.

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Today I’m joined once again by Frank Blakely of Bay Equity Home Loans to talk about a question that arose while talking to some of my clients: “How am I going to get into the Southern California market?”

According to Frank, this concern actually arises as a result of two common misconceptions people have regarding the home purchase process.

The first misconception is that you need to put 20% down to secure a home. The truth is that you can put down as little as 3% to qualify for a conventional loan under $450,300. In high-cost areas of California, Fannie Mae and Freddie Mac allow people to secure conventional loans up to $679,650 for just 5% down. For that same price range, people in these same areas can obtain an FHA loan with as little as 3.5% down.

While it’s preferable to have a higher credit score when purchasing a home, it’s certainly possible to qualify with a lower one

People often think it’s better to wait and save up money, but by the time they have a higher down payment saved, home prices may have also risen.

The second misconception people often have is that you must have a perfect credit score to purchase a home. It’s true that a higher credit score will earn you a better rate, but there are absolutely options for people with lower scores. For example, you can still qualify for an FHA loan with a credit score as low as 580. For a conventional loan, your score can be as low as 620. So, while it’s preferable to have a higher score, it’s certainly possible to qualify with a lower one.

If you have any other lending questions for Frank, feel free to give him a call at (949) 433-0539. And, as always, if you have any other questions or would like more information about real estate, feel free to give me a call or send me an email. I look forward to hearing from you soon.