Move In Ready vs Fixer Upper: What I’ve Learned After Buying (and Selling) Both

When you buy a home for the first time, or even your third, it is easy to think the decision is simple. Move in ready or fixer upper. In reality, that choice affects far more than paint colors and weekend projects. It impacts how you finance the home, how soon you can actually live in it, how much you will really spend, and how much patience you will need along the way. And yes, patience will absolutely be tested.

I have purchased move in ready homes. I have purchased fixer uppers. I have also helped many clients do both. What most buyers do not realize is that the biggest differences do not show up during the showing. They show up after you are under contract, when lenders, inspectors, permits, neighbors, and real life all decide to show up at once.

The First Thing Most Buyers Overlook: Loan Type Matters

One of the very first questions I ask clients considering a fixer upper is not, “What do you want to renovate first?” It is, “How are you planning to finance this?”

Before going further, a quick and important note. I am not a loan expert. I do not pretend to be one. What I do have is a strong network of trusted lenders who are experts, and I regularly connect my clients with them early in the process so we can make informed decisions before emotions take over.

Many buyers, especially first time buyers, assume they can buy a fixer upper with a standard loan and simply put in sweat equity. In theory, that sounds great. In practice, that is often not how lending works.

Here is what typically comes up:

• Conventional loans, which usually have lower interest rates, generally require the home to be habitable at closing. That means working utilities, no loose wires, functional kitchens and bathrooms, and no major safety issues. Homes that need cosmetic updates like paint, flooring, or fixtures can often qualify. A true fixer upper usually cannot.

• VA loans also come with excellent benefits and lower rates, but they are very strict about livability. All safety issues must be resolved before closing. I once had a VA loan delayed almost two months over a missing handrail. A conventional loan would likely have moved forward. A true fixer upper is almost never an option with this loan type.

• Other loan options do exist, but they often come with higher interest rates, more paperwork, and stricter terms. Buyers are frequently surprised to learn that homes needing significant work can be more expensive to finance than homes that are move in ready. That great deal on the purchase price can disappear quickly.

I have seen many buyers fall in love with the idea of a fixer upper, only to learn that the loan will not allow it or that the numbers stop making sense once financing realities kick in.

The Sweet Spot Most Buyers Actually Want

Here is a little industry truth. Most buyers who say they want a fixer upper do not actually want one.

What they usually want is a move in ready home that is a little outdated.

These homes are often:

• Fully livable on day one

• Able to qualify for conventional financing

• Easy to update gradually over time

• Far less stressful during the moving process

This is often the best balance for buyers who want to move in quickly but still personalize the home without living in a construction zone.

True Fixer Uppers: Who Really Buys Them

Homes that are truly distressed, vacant for years, heavily damaged, or completely gutted are rarely purchased by everyday buyers. Most of the time, they are purchased by all cash buyers or developers.

When I help clients purchase true fixer uppers, it is usually because cash allows them to:

• Avoid financing hurdles, which can be intense

• Skip lender inspections that can delay or cancel deals

• Avoid interest accruing while work is being completed

• Handle delays and surprises with more flexibility

And yes, there are always surprises. If someone tells you there will not be, they are lying or very new to this. For buyers who need financing, these homes are often much harder and more expensive than they appear on paper.

Bridge Loans: A Tool, Not a Shortcut

Some buyers explore bridge or renovation loans as a way to purchase distressed properties and fund repairs. These loans can work, but they are not the easy solution many buyers expect.

They often involve:

• Two closings instead of one

• Higher interest rates

• Closing costs on both loans

• Stricter timelines and documentation

I have helped clients use bridge loans successfully, but they tend to add another layer of stress to a project that is already mentally consuming.

One strategy that has worked well for some clients, especially with two unit or multifamily properties, is when at least one unit is fully livable. In some cases, banks may allow a conventional loan if one unit meets habitability standards. This approach has saved clients thousands of dollars and made projects possible that otherwise would not have worked.

Renovations Are Not Just About Walls and Design

Another common misconception is that fixing up a home is simply about tearing down a wall or opening up a floor plan.

In reality, renovations often involve:

• Permits and inspections

• Engineering reports

• Neighbor complaints

• Code upgrades you never planned for

I have had clients receive stop work orders mid project because permits were not pulled or neighbors complained about noise. Suddenly timelines stretch, budgets grow, and stress levels skyrocket. Renovation confidence disappears quickly once paperwork shows up.

Permits in DC and Virginia: Plan Accordingly

If you are renovating in DC or Northern Virginia, it is important to know this upfront. You will need permits for almost everything, with painting being one of the few exceptions.

The process usually includes hiring designers or architects, creating drawings, submitting permits, waiting for reviews, making revisions, and sometimes securing approvals from community or historic boards. Depending on the scope of work, this can take months or even years. Renovation is just as much an administrative process as it is a construction one.

Time Matters Just as Much as Money

Cost is easy to calculate. Time is not.

Ask yourself:

• Do you want to live through construction?

• Can you handle delays during a major life transition?

• Do you want to unpack once or multiple times?

• Are you prepared for surprises once walls are opened?

Some buyers thrive in renovation chaos. I am one of those people. Others, including my spouse, strongly believe the emotional and time costs outweigh the financial upside, especially when the plan is to live in the home.

Both viewpoints are valid.

The Bottom Line

There is no right or wrong choice, only the right choice for you and whoever you are purchasing with. If that is a spouse, prepare for some honest conversations before buying. If it is a friend or partner, make sure expectations, responsibilities, and costs are clearly documented upfront.

Move in ready homes offer simplicity, predictability, and peace of mind. Fixer uppers offer opportunity, customization, and potential upside, but only if you understand the full picture.

At Urban District Realty, my role is not to push one option over the other. It is to help you understand what you are truly signing up for and to connect you with the right professionals, including trusted lenders, so your purchase aligns with your finances, lifestyle, and long term goals.

Whether you want turnkey convenience or are ready to roll up your sleeves, we are here to guide you honestly, strategically, and with experience on both sides of the equation.