The Wall St. Journal recently took a closer look at the concept of “turnkey” homes on the market and it found they are much more prevalent in West Coast cities (Los Angeles included) than in other regions of the country. In fact, while overall “turnkey” listings have dipped slightly since 2012, some West Coast cities have seen available turnkey homes increase by 20% or more during that time.
A “turnkey” home can mean a few different things, according to the real estate professionals contacted by the Wall St. Journal. Typically, it means a home is move-in ready and doesn’t require any major repairs or renovations. It can also mean that everything inside the home comes as part of the sale. One agent described it as a home with “every single thing a family wants if they wanted to move in tomorrow and not buy anything but food.”
According to real estate brokerage ZipRealty, one in every 150 listed homes nationally has the term “turnkey” in the description. However, that rate is much higher in many Western metro areas.
In Los Angeles, the number of turnkey listing actually fell in 2013 by 9.4% from the previous year, but was still above the national rate. In nearby Orange County it was another story entirely. That market saw a 20.2% jump in turnkey listings last year.
ZipRealty found that homes with “turnkey” in the listing bring a price of 3.1% more than those that did not have the term. A couple of other findings by Wall St. Journal: Typically, regions with higher foreclosure rates will have more turnkey listings; also, real estate investors or flippers can account for up to 50% of turnkey listings in a particular market.