When buying a new home, there is much to consider. Not only is it one of the biggest purchases you will ever make but there are so many things to consider. How important is a big yard? Are there good schools nearby? These are just a few of the important decisions to make, but another big one is if you're looking for a newer or older home.
Newer and older homes have their own negative and positive attributes. Newer homes have been recently painted, they have new carpeting, and you can move in without much hassle. On the other hand, a home like this is usually quite costly.
A fixer-upper has been around a while, and can be quite old. They have been lived-in and used. Homes like this usually come along with some remodelling or repairs, but they have the advantage of having unique characteristics.
They could have kitchen cabinets that are from the 1960s, and shag carpeting which is no longer in style. Another way to look at it is that they give you the potential to make them your own. Fixer-uppers commonly come with lower price tags and more square footage than newer homes. But always remember that they will require some work - maybe more than you think.
While thinking about purchasing a fixer-upper, there are a few things you need to remember:
In order to accurately assess how much work will be needed for the home, do the necessary research. It won't take you much time to put a fresh coat of paint on the home or to replace the carpet, and the price for these is low considering the overall price of the home. However, when there are significant problems with the foundation or the plumbing in the home, it could me many thousands of dollars to complete.
The structure of the house should be sound in order to make it a worthwhile investment. If the house has major issues like water damage, structural damage, wiring or plumbing that is outdated, or pests, it's wise to look elsewhere. Issues like this can be very expensive to fix.
Keep a checklist while you are looking at homes, so that you can keep track of what repairs need to be done, and can calculate insurance prices. Your lender will require you to purchase homeowners insurance if you are buying a home.
Usually, older homes cost more to insure than newer ones. There are a few major parts of the home that insurers look at closely, including the electrical and plumbing, air conditioning and heating systems, and the age of the roof. For good reason:
The odds of structural weakness and leaks go up as the age of the roof increases. Leaks are also more likely to happen with older plumbing, which can result in further water damage to your home. Older electrical systems that use ungrounded power outlets and fuse boxes especially carry a significant fire hazard.
If you are interested in a home with a higher risk problem, it's a good idea to call and get an idea of your home insurance premiums. Keep in mind that the renovations that you do, and your overall home budget needs to be considered which include your insurance premiums. After renovation, the replacement value of your home will go up as the risks associated with the older home go down, so keep that in mind. Don't forget to talk to your insurance agent about the renovations you're planning in order to maintain the level of insurance that you require.
If you think you've found the perfect house, don't rush into it and never put in an offer on an older house without out making it conditional on a home inspection. You won't be able to see all of the problems that a home inspector might see, and you definitely don't want to buy a house and then later find out termites have caused extensive structural damage.
Newer and older homes have their own negative and positive attributes. Newer homes have been recently painted, they have new carpeting, and you can move in without much hassle. On the other hand, a home like this is usually quite costly.
A fixer-upper has been around a while, and can be quite old. They have been lived-in and used. Homes like this usually come along with some remodelling or repairs, but they have the advantage of having unique characteristics.
They could have kitchen cabinets that are from the 1960s, and shag carpeting which is no longer in style. Another way to look at it is that they give you the potential to make them your own. Fixer-uppers commonly come with lower price tags and more square footage than newer homes. But always remember that they will require some work - maybe more than you think.
While thinking about purchasing a fixer-upper, there are a few things you need to remember:
In order to accurately assess how much work will be needed for the home, do the necessary research. It won't take you much time to put a fresh coat of paint on the home or to replace the carpet, and the price for these is low considering the overall price of the home. However, when there are significant problems with the foundation or the plumbing in the home, it could me many thousands of dollars to complete.
The structure of the house should be sound in order to make it a worthwhile investment. If the house has major issues like water damage, structural damage, wiring or plumbing that is outdated, or pests, it's wise to look elsewhere. Issues like this can be very expensive to fix.
Keep a checklist while you are looking at homes, so that you can keep track of what repairs need to be done, and can calculate insurance prices. Your lender will require you to purchase homeowners insurance if you are buying a home.
Usually, older homes cost more to insure than newer ones. There are a few major parts of the home that insurers look at closely, including the electrical and plumbing, air conditioning and heating systems, and the age of the roof. For good reason:
The odds of structural weakness and leaks go up as the age of the roof increases. Leaks are also more likely to happen with older plumbing, which can result in further water damage to your home. Older electrical systems that use ungrounded power outlets and fuse boxes especially carry a significant fire hazard.
If you are interested in a home with a higher risk problem, it's a good idea to call and get an idea of your home insurance premiums. Keep in mind that the renovations that you do, and your overall home budget needs to be considered which include your insurance premiums. After renovation, the replacement value of your home will go up as the risks associated with the older home go down, so keep that in mind. Don't forget to talk to your insurance agent about the renovations you're planning in order to maintain the level of insurance that you require.
If you think you've found the perfect house, don't rush into it and never put in an offer on an older house without out making it conditional on a home inspection. You won't be able to see all of the problems that a home inspector might see, and you definitely don't want to buy a house and then later find out termites have caused extensive structural damage.
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