You would think that understanding real estate terms might be a bit easier than prepping for the country’s largest spelling bee. Yet seemingly basic realty terms can have widely diverse meanings depending on geographic location and even within the housing industry itself.
The language of turnkey
Take the term, turnkey, as applied to owning, selling, or building a home. In general realty terms, turnkey usually means “move-in ready”. But there is move-in ready, and there is move-in ready. In the eastern part of the United States a home may be described as turnkey if it requires no significant or immediate repair work. Some real estate ads will declare that a home is, “turnkey ready!” if all the electrical outlets and water sources function properly. Or it has a fresh coat of paint.
One eastern area realtor describes a turnkey home as one that is ready for the new owner to turn the key in the front door, walk in, and unpack the clothes and toothbrush: everything else – including furnishings, appliances, even linens – is already in place. All the new owner needs to do is plug in the recharge base for the toothbrush.
An agent in the southeastern United States defined turnkey as, “… investment properties that are already rented with property management in place.”
Owning, buying, building turnkey
Some people purchase a second home for use as a turnkey property, usually rented on a short-term basis such as for vacations. Turnkey in this context often means that the owner’s furnishings and items remain in place. This usage provides income and convenience to the home owner and vacation usability for both owner and renter. Either way, the house remains ready to use.
The building aspect of turnkey has its own variations. A home buyer may contract with a builder to have a home built to specification, including all finishing details of flooring, lighting, cabinets, hardware, etc. Some buyers will even work with the contractor and design team to completely furnish the new home down to the tea pot and flatware. This might be considered the ultimate in turnkey ready.
Building within a new housing development also offers opportunity for turnkey readiness, minus (usually) the furnishings. Construction begins within the development when the individual house is purchased – prior to building. The owner will meet with the sales/developer team to select colors, flooring, and all finishing details.
Not to be left out of building to turnkey level housing are prefabricated or manufactured houses. Pre-fab and manufactured homes are no longer code words for double-wide mobile homes. Modern manufactured homes are opportunities for buyers who want more control over the construction and details of a home, often to be situated on a property of choice. Turnkey can refer to the basics of finished interior/exterior, or can include fully customized and furnished homes.
When in doubt, ask to talk “turnkey”
If you are unsure about what turnkey means, ASK! Don’t assume your understanding of the term will be the same as the agent’s. Get a clear understanding from the realtor, developer, or other representing agent what is meant when the property or building is described as turnkey.
And if that person’s definition of turnkey wasn’t included in any of the descriptions mentioned above, add the new definition to the list.
Article Source: http://EzineArticles.com/8546501
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