There is a lot to think about when purchasing a home. 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? Near great schools? The options can seem endless, but one decision you will ultimately have to make is whether you want to buy an older or newer home.
Newer and older homes have their own negative and positive attributes. A new home has got clean carpet, fresh paint, its move-in ready and has that new house smell. However, these homes often come with a hefty price tag.
As for fixer-uppers, they are generally old. The home has probably gone though many owners, and has been used for many years. They often have more character but could require their new owners to launch a few do-it-yourself projects.
From shag carpet to outdated kitchen cabinets, these homes might seem like a mess. The positive way to look at it is that you have the chance to add your own personal touch to the home. 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.
When considering purchasing a fixer-upper home, remember to follow these important steps:
Do your research to determine the difference between an easy and difficult fix. 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. It can be quite costly to redo the plumbing, and if repairs are needed on the foundation itself, it is another major process.
The structure of the house should be sound in order to make it a worthwhile investment. Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing. Making major repairs like this will be very costly.
In order to figure out insurance costs and keep track of needed repairs, keep a note pad with you while you check out homes and write it all down. You will be required by your lender when buying a home to also purchase homeowners insurance.
Typically, if you buy an older home, it could cost you more to insure. 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. This is why:
An older roof is more prone to leaks and structural weakness. Older plumbing is subject to leaks that can lead to long-term water damage. Older electrical systems that use ungrounded power outlets and fuse boxes especially carry a significant fire hazard.
It's a good idea to talk to your home insurance provider before considering purchasing a home with issues in these important areas. 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. Your insurance provider must be informed about your renovation and repair plans so that your coverage will be sufficient.
Do not make an offer on a home before you have had a home inspection, even if the home appears to be everything you've always wanted. A home inspector will be able to see damage that is concealed or otherwise hard to find, and this will protect you from moving in and then finding that the structural damage to your home is severe because of termites or something else that you didn't notice yourself.
Newer and older homes have their own negative and positive attributes. A new home has got clean carpet, fresh paint, its move-in ready and has that new house smell. However, these homes often come with a hefty price tag.
As for fixer-uppers, they are generally old. The home has probably gone though many owners, and has been used for many years. They often have more character but could require their new owners to launch a few do-it-yourself projects.
From shag carpet to outdated kitchen cabinets, these homes might seem like a mess. The positive way to look at it is that you have the chance to add your own personal touch to the home. 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.
When considering purchasing a fixer-upper home, remember to follow these important steps:
Do your research to determine the difference between an easy and difficult fix. 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. It can be quite costly to redo the plumbing, and if repairs are needed on the foundation itself, it is another major process.
The structure of the house should be sound in order to make it a worthwhile investment. Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing. Making major repairs like this will be very costly.
In order to figure out insurance costs and keep track of needed repairs, keep a note pad with you while you check out homes and write it all down. You will be required by your lender when buying a home to also purchase homeowners insurance.
Typically, if you buy an older home, it could cost you more to insure. 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. This is why:
An older roof is more prone to leaks and structural weakness. Older plumbing is subject to leaks that can lead to long-term water damage. Older electrical systems that use ungrounded power outlets and fuse boxes especially carry a significant fire hazard.
It's a good idea to talk to your home insurance provider before considering purchasing a home with issues in these important areas. 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. Your insurance provider must be informed about your renovation and repair plans so that your coverage will be sufficient.
Do not make an offer on a home before you have had a home inspection, even if the home appears to be everything you've always wanted. A home inspector will be able to see damage that is concealed or otherwise hard to find, and this will protect you from moving in and then finding that the structural damage to your home is severe because of termites or something else that you didn't notice yourself.
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