Buy, Build, or Renovate? A Guide to Finding the Right Home for You

Explore Your Best Homeownership Options Based on Your Budget and Lifestyle

Planning to Buy a Home in 2025? You’re Not Alone

Homeownership remains a top goal for many Americans, but 2025 presents new challenges for buyers and sellers alike. A recent survey commissioned by NerdWallet and conducted online by The Harris Poll in late 2024 found that 35% of non-homeowners say the high cost of living is their biggest barrier to buying a home. Inflation, rising expenses, and high mortgage rates continue to impact affordability, making it harder for buyers to enter the market.

Source: www.nerdwallet.com | infogram.com

Current homeowners also face hurdles. Many who secured historically low mortgage rates in past years hesitate to move, with 62% of homeowners reporting something is preventing them from buying their next home. The biggest obstacles? High mortgage rates (23%) and increased living costs (22%).

With these financial pressures limiting both buyers and sellers, inventory remains tight. In 2024, just over 4 million existing homes were sold—the lowest number since 1995. With high demand and fewer available properties, buyers must consider all paths to homeownership:

• Buying a move-in-ready home

• Building a new home

• Investing in a fixer-upper

Here’s what you need to know about each option to make the best choice for your budget and lifestyle.

Buying a Move-In-Ready Home

Pros:

• Move-in ready with little to no renovation required

• More financing options available with traditional home loans

• Faster, more straightforward buying process

Cons:

• High demand can lead to bidding wars and rising prices

• Limited inventory may reduce options in your preferred location

Pro Tip:

Be prepared to act fast. Get pre-approved for a mortgage and work with an experienced real estate agent who understands local market trends. If homes are selling above the listing price, consider looking at properties slightly below your budget to leave room for negotiation.

Relevance to Scottsdale, Arizona:

Scottsdale is known for its luxury real estate market and move-in-ready homes that cater to affluent buyers. However, the competition is fierce, especially in sought-after neighborhoods like Old Town Scottsdale and North Scottsdale. Buyers should be ready to act quickly and have flexible budgets to navigate potential bidding wars. Sellers can benefit from high demand, making this an ideal time to list their homes if they are considering selling.

Building a New Home

Pros:

• Customization options for layout, design, and finishes

• Energy-efficient materials and modern designs

• Potential builder incentives (e.g., rate buydowns, upgrades)

Cons:

• Longer wait times due to construction delays and supply chain issues

• Higher upfront costs, especially for custom builds

• Limited location options in new developments

Pro Tip:

If you’re financing a new construction, explore loan options early. Some builds require a construction loan with different terms than a traditional mortgage. Compare the builder’s financing with other lenders to secure the best deal.

Relevance to Scottsdale, Arizona:

Scottsdale has seen a surge in new construction developments, especially in areas like Desert Mountain and Silverleaf. Many buyers opt for new builds to take advantage of modern amenities and smart home technology. However, limited land availability can make finding the perfect lot challenging. Sellers with vacant land or older homes in prime locations can capitalize on the growing demand by marketing their properties as potential teardown opportunities for new construction.

Renovating a Fixer-Upper

Pros:

• More affordable entry into competitive neighborhoods

• Opportunity to customize the home to your style

• Potential for increased home value through renovations

Cons:

• Renovation costs and timelines can be unpredictable

• Some homes may require extensive (and expensive) repairs

• Living through construction can be inconvenient

Pro Tip:

Before purchasing, work with a contractor or inspector to get a realistic estimate of renovation costs. Consider a renovation loan, which allows you to finance both the purchase and remodeling costs.

Relevance to Scottsdale, Arizona:

Scottsdale has a mix of historic and mid-century homes, many of which are prime candidates for renovation. Buyers looking for a more affordable entry point into Scottsdale’s luxury market often turn to fixer-uppers in neighborhoods like Arcadia or McCormick Ranch. Renovating a property can be a great investment, as Scottsdale’s real estate market continues to appreciate. Sellers with older homes can also benefit by making strategic updates before listing to maximize their home’s value.

Scottsdale’s real estate market continues to thrive, making it an excellent place for buyers and investors looking to renovate homes for long-term value appreciation. The city's mix of architectural styles, from Southwestern ranch homes to contemporary builds, offers plenty of opportunities for customization. In neighborhoods like South Scottsdale, where homes built in the mid-20th century are more affordable, renovations can significantly increase a property’s resale value.

• For buyers, purchasing a fixer-upper allows for personalized upgrades while potentially securing a home in a desirable area at a lower initial cost. However, navigating renovations in Scottsdale requires careful planning. Buyers should be aware of city zoning laws, HOA restrictions, and the cost of materials, which can vary depending on the scope of the remodel.

• For sellers, updating kitchens, bathrooms, and outdoor spaces can make an older home more attractive to today’s buyers, especially those seeking modern, move-in-ready properties. Features like open-concept layouts, high-end finishes, and energy-efficient upgrades are particularly desirable in Scottsdale’s luxury market. Investing in these improvements before listing can lead to quicker sales and higher offers, making renovation a worthwhile strategy for sellers looking to maximize their return.

Which Homeownership Option Is Best for You?

Each path to homeownership comes with unique benefits and challenges:

• Want a hassle-free move? A turnkey home is your best bet.

• Craving customization? Building from scratch may be worth it.

• Willing to take on a project? A fixer-upper could be a great investment.

Final Thoughts and Call to Action

Deciding whether to buy, build, or renovate a home is a major decision that depends on your financial situation, lifestyle preferences, and long-term goals. In Scottsdale, Arizona, the real estate market offers a diverse range of options, from luxury move-in-ready properties to exciting renovation opportunities. Understanding your needs and working with a knowledgeable real estate professional can help you make the best choice.

For Buyers:

If you’re considering buying a home in Scottsdale, start by assessing your budget and priorities. Do you want a stress-free move, or are you willing to wait for a new build? Are you open to a fixer-upper if it means securing a better location? Answering these questions will help narrow down your options. Work with a local agent who understands Scottsdale’s competitive market to find the perfect home for your needs.

For Sellers:

If you’re selling a home in Scottsdale, consider how your property fits into these three categories. Move-in-ready homes are in high demand, and a well-maintained property can attract strong offers. If your home needs updates, consider making strategic renovations before listing to boost its market value. If you own land or an older property in a prime location, marketing it to buyers looking for new construction opportunities can increase your chances of a successful sale.

Let’s Make Your Real Estate Goals a Reality

Whether you’re looking to buy, build, or renovate in Scottsdale, the right guidance can make all the difference. 

Connect with Denise today to explore your best homeownership options and take the next step toward your dream home.