Published: April 30, 2015Topics: Trends to Watch

Turnkey Homes: Why Buyers Can’t Resist

The turnkey is currently one of the kings of the real estate market, a key factor in a quick, easy sale where everyone walks away happy. Why is the turnkey so particularly popular right now? Here are few of the key reasons.


First-Time Buyers

As the millenials grow up and more first-time buyers enter the market in the 2010s, the popularity of turnkey homes has grown. First-time buyers tend to be young and are usually less likely to buy a home that needs repairs. Typically, they want something that is simple and easy to deal with, with no complicated concessions. This means homes that don’t need much work, which is why many realtors tend to find success showing these first-timers turnkey properties and related homes.


Bad Foreclosure Experiences

Out of the recession rose a vast number of foreclosures and short sales that hit the market all at once (or over time, depending on bank strategies). Unfortunately, this also propagated a lot of horror stories about buying foreclosures that were dumps or that had been trashed and needed expensive repairs just to be habitable. This created a reaction against foreclosures and put turnkey homes in an even more positive light. Buyers now may go out of their way to avoid any foreclosed home or a more lived-in home when they can just choose a turnkey instead and avoid the risks.


Time and Tide

Time continues to be an important part of home buying for all home owners, and nothing speeds up a home buying process like a turnkey property where the seller is already out and willing to be flexible. If time is an issue, then taking a look at newer developments and homes may appeal to buyers who just want to move in quickly without worrying about the needs of a seller.


Seller Projects

As income levels and real estate activity have slowly recovered in the past few years, sellers and owners have proven more willing to tackle new projects, specifically renovations. These renovations often take care of lingering home problems that an inspector would catch or otherwise make homes more suitable for sale, thus bringing properties closer to a turnkey status. As a result, it may be easier to find turnkey home options even in the more consumer-controlled sections of the real estate market.


Return on Investment

When it comes to selling or buying rental properties, turnkeys are often the first to go. Owners looking to maximize their rental return on investment simply prefer the ease and low expense of starting out with a turnkey. This is generally true for all types of investors, not just those looking to rent out properties.