We’ve gotten used to getting what we want as quickly as someone can drive it to us. But over the last two years, Covid has changed that. This issue is exactly why turnkey properties have become essential in our new real estate world.
“Massive dislocations are present in the container market, shipping routes, ports, air cargo, trucking lines, railways and even warehouses,” according to Forbes. “The result has created shortages of key manufacturing components, order backlogs, delivery delays and a spike in transportation costs and consumer prices.”
In real estate, this means it’s becoming increasingly harder to renovate. That quick project could now be held up by a knob, pipe, or countertop. That’s why it’s more true than ever that people want something they can move into now.
Investopedia defines a turnkey property as “a fully renovated home or apartment building that an investor can purchase and immediately rent out.” In this Covid world, the demand for turnkey properties has gone from being dominated by investors to being a much-desired alternative for high-end renters and homeowners.
What qualifies as a “turnkey” product has changed exponentially over the last 10 years. Today, turnkey properties are expected to reflect the finest in high-end luxury.
Whether you’re a seller, buyer, or real estate agent, you’re going to have to adapt to this new real estate world and compromise on something. Not to worry, though – here is a crash course on the subject of what makes a property appeal to the largest pool of buyers in this market.
What does a turnkey product look like?
Firstly, today’s turnkey product is the epitome of ready-made luxury. Real luxury inside and out. It’s beautiful engineering and solid core doors. It’s hardwood floors and cabinetry that’s not chipped. Fixtures that feel substantial and clean and look like they belong with everything else in the home. Everything should be made with natural materials; if not, it has to feel super lux. In New York City, you can also throw in an elevator, keyless entry, close proximity to the gym or maybe even a gym and/or other amenities within the building. Those are the basics. Bottom line: A turnkey property is something you can move into that won’t need a tremendous overhaul to resell if you need to within 5 years.
If you’re a seller
Maybe you’re a seller who thought your place was turnkey and realized it doesn’t quite fly, or maybe you’re reading this and realizing you can benefit from renovating to appeal to a higher end clientele. Either way, you’ll want to get a designer AND contractor who is knowledgeable about the current real estate landscape — someone who can make sure you have all the right touches to keep up with the Joneses.
If you’re a buyer
Understand that owning a turnkey property is going to cost money (because of the aforementioned supply chain issue). You have a choice. Either buy something that needs renovation, take your time to do it well and get everything you want, or be prepared to invest into something that is already well done. Get a second set of eyes from a real estate agent or contractor to tell you what it’s going to take to make the property ready for move in and living!
If you’re a real estate agent
Advise your client if their home is going to look good now and fall apart later so that they can be prepared to make renovations in the not-too-distant future. Or advise that they be prepared to pay upfront for something that will actually stand the test of time.
The timeline to renovate has gotten longer. The time a turnkey home is going to last on the market is much shorter because the benefits of buying a home that can be enjoyed immediately have increased tenfold. Adapting to this reality will involve budgeting the cost and time related to renovating or focusing buy searches on properties that need minimal work.
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