If you’re planning to buy a home in the next year, you’re far from alone. A recent survey by NerdWallet and The Harris Poll shows that nearly 39 million Americans which is about 15% of the population, are hoping to buy a home in the next 12 months. That’s the highest number since the survey began in 2019. But with last year’s home sales at a near 30-year low and inventory remaining tight, competition is fierce. For every available home, there could be more than six serious buyers.
To navigate this high-demand, low-supply market, it’s important to widen your search and remain flexible. Real estate experts recommend identifying your non-negotiables which are things like location, number of bedrooms, and square footage, while being open to compromise on other features. One key area to consider? Whether you should buy a move-in-ready home, build new construction, or take on a fixer-upper. Each comes with pros, cons, and strategic decisions.
Buying a turnkey home is appealing for obvious reasons. Once the sale is finalized, you can move in immediately. These homes also offer the most straightforward financing options, allowing you to shop around for the best mortgage deal. But in today’s market, turnkey homes are the most competitive. Pristine listings often receive multiple offers and sell quickly, sometimes above asking price. To stand a chance, buyers should be ready to act fast, have mortgage preapproval in hand, and understand how much over asking they’re willing to go. Targeting listings slightly below your budget can give you room to compete if bidding heats up.
Building a new home offers a different kind of opportunity. You’ll avoid the bidding war and possibly enjoy more say in the design and layout of your home, especially if you’re working with a builder in a new development. Some builders offer incentives like lower interest rates or upgraded finishes, which can stretch your budget further. The downside? Timelines can be unpredictable due to construction delays, labor shortages, or supply chain issues. Also, depending on how the project is structured, you may need a construction loan, which often comes with stricter lending criteria and higher down payments. If you’re buying in a development, financing tends to be simpler, but you may still have to pay a builder’s deposit upfront.
For buyers willing to get their hands dirty, a fixer-upper can offer great potential. These homes can often be found at lower prices or in more desirable neighborhoods that might otherwise be out of reach. Renovating gives you the chance to customize your space while possibly adding value to your investment. However, renovations almost always take longer and cost more than expected. The work can be disruptive, especially if you’re living in the home during construction. You’ll need to carefully assess what’s required and whether the timeline fits your lifestyle. Bringing in a home inspector and contractor before you buy can help you estimate costs and decide if the project is worth pursuing. A renovation loan might also be an option, bundling both purchase and improvement costs into one mortgage.
With limited inventory and strong buyer demand, flexibility is key in today’s market. Whether you’re aiming to move into a turnkey home, build from the ground up, or tackle a renovation project, success comes down to preparation, realistic budgeting, and understanding the trade-offs. The best option for you depends on your financial situation, timeline, and willingness to take on risk or work. While there’s no one-size-fits-all answer, exploring all three paths of buying, building, or renovating , can open doors to opportunities in a challenging housing landscape.
