There is a lot to think about when purchasing a home. You have the stress of knowing that this is one of the most important purchases you will ever make, but also have a lot of other things to think about. How important is a big yard? Near great schools? 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.
Old and new homes each have their pros and cons. For a new home, you don't need to worry about painting, the carpeting is in perfect condition, and moving in is relatively easy. One big negative of a new home is that the price is often quite high.
A fixer-upper has been around a while, and can be quite 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.
A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen. A good way to think about it is that you have an opportunity to style the home according to your own taste. A fixer-upper home is usually less costly, and the square footage is typically more than what a newer home has to offer. Homes like this will obviously take a lot of effort to renovate, and some people don't realize how much work there is.
When considering purchasing a fixer-upper home, remember to follow these important steps:
In order to accurately assess how much work will be needed for the home, do the necessary research. Changing the carpet or paint color doesn't take a huge amount of effort and won't break the bank. Completely redoing the plumbing or reinforcing the foundation can be a pain and cost thousands of dollars.
For you to invest your money in a house, protect your investment by making sure the home's structure is in good shape. If there is structural damage, antiquated wiring or plumbing, pests, or water damage, it's best to look at another home. 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. 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. Home insurance carriers pay special attention to the age of the roof, electrical and plumbing fixtures, and heating and air conditioning systems. 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.
It's a good idea to talk to your home insurance provider before considering purchasing a home with issues in these important areas. Remember, you'll need to include those premiums - as well as renovation costs - as part of your overall budget for your home purchase. Something else that needs to be considered is that while your risk will be lower after renovation, the cost of replacing the home will increase. 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. 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.
Old and new homes each have their pros and cons. For a new home, you don't need to worry about painting, the carpeting is in perfect condition, and moving in is relatively easy. One big negative of a new home is that the price is often quite high.
A fixer-upper has been around a while, and can be quite 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.
A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen. A good way to think about it is that you have an opportunity to style the home according to your own taste. A fixer-upper home is usually less costly, and the square footage is typically more than what a newer home has to offer. Homes like this will obviously take a lot of effort to renovate, and some people don't realize how much work there is.
When considering purchasing a fixer-upper home, remember to follow these important steps:
In order to accurately assess how much work will be needed for the home, do the necessary research. Changing the carpet or paint color doesn't take a huge amount of effort and won't break the bank. Completely redoing the plumbing or reinforcing the foundation can be a pain and cost thousands of dollars.
For you to invest your money in a house, protect your investment by making sure the home's structure is in good shape. If there is structural damage, antiquated wiring or plumbing, pests, or water damage, it's best to look at another home. 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. 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. Home insurance carriers pay special attention to the age of the roof, electrical and plumbing fixtures, and heating and air conditioning systems. 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.
It's a good idea to talk to your home insurance provider before considering purchasing a home with issues in these important areas. Remember, you'll need to include those premiums - as well as renovation costs - as part of your overall budget for your home purchase. Something else that needs to be considered is that while your risk will be lower after renovation, the cost of replacing the home will increase. 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. 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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