Every week, I field new questions from clients and neighbors alike. Sometimes it’s about lead paint laws for landlords. Other times, it’s guidance on navigating a condo board issue.

This week, I found myself toggling between three conversations. Each was different, but all circled the same question:

What’s the true cost of a home beyond the sticker price?

1. The “Deal” at Auction

A set of clients — who you may remember from their New York Times feature on co-purchasing a Brooklyn brownstone — reached out about a property on their block going up for auction. The home had a $1.2 million unpaid mortgage, and they wondered if they could buy it cheap, then invest their money in a renovation.

It’s a logical thought, but one that skips a few important realities.

The property had been stuck in foreclosure since 2015 (nearly a decade) and it was still occupied, which meant the path forward likely included:

• Legal fees

• Liens and violations

• Evicting tenants or paying them to vacate

• No ability to tour the property before closing

All of these costs would need to be covered out-of-pocket upfront, with the hope of reimbursement later through a cash-out refinance. And all of this comes before any renovation can even begin — for a likely gut reno project.

What looked like a bargain could easily turn into years of legal hurdles, major financial risk, and no clear timeline to move in.

When clients ask about such a purchase, the path to making the dream happen often begins with deconstructing an illusion.

2. The Surprise of a Mid-Range Reno

At the same time, a neighbor messaged me about upgrading the dated features of her townhouse. She had mainly spoken with designers — and was fielding ballpark quotes of $3 million for what she thought would be a relatively light renovation.

She was stunned. “At that estimate, I could keep my house as-is and just buy another,” she said.

We discussed design options and different tiers of contractor service.
I also shared a reference point: One of my clients is currently doing a meaningful, though not full-gut, renovation. The most basic version of the work — addressing real issues and using standard materials — came in around $1.3 million. The final cost will grow depending on finishes, design choices, and scope.

My guidance to her was to interview multiple contractors, consider the level of service and bedside manner she needed, and scale back the scope of the designer’s work to save on costs.

Even after cutting costs, a $1.5M renovation budget is often paid via construction loan — requiring an owner to shell out costs in cash before getting reimbursed by their lender.

3. The Power of Turnkey

Then there’s the third path. I visited a client this week who purchased a fully renovated townhouse. It wasn’t the cheapest of the three — in fact, the sticker price was roughly $1.8M higher than the neighbor planning her reno. But it was beautifully finished, thoughtfully designed, and completely move-in ready.

There was no renovation timeline, no surprises or added emotional bandwidth required to make it livable. Importantly, the investment could be fully financed with a typical mortgage.

That said, there were some elements of the design that didn’t speak to them — but since they had paid for a renovated home, they were unlikely to invest in personalizing it further.

So… what’s the best path?

Is the wiser financial move to purchase something turnkey?
An auction property sight unseen?
Or something in between?

There’s no one-size-fits-all answer. It depends on your timeline, appetite for project management, risk tolerance, and financial flexibility.

But one thing is clear:

A low sticker price doesn’t always mean a low total cost. And a high sticker price doesn’t mean you’re overpaying.

The smartest buyers are the ones who understand the full picture. They ask the right questions about legal risks, renovation logistics, financing options, and hidden costs — and how all of it aligns with their goals.

That’s what I’m here to help with.