When buying a new home, there is much to consider. There is a lot to keep in mind, especially since this is considered the single most important purchase in the lives of most people. Do you want a house with a big yard? Near great schools? Decisions like these need to be made, but then you need to consider if you want a home that is older, or one that is more modern.
Old and new homes each have their pros and cons. Newer homes have been recently painted, they have new carpeting, and you can move in without much hassle. 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. 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. The price of a fixer-upper is typically lower than newer homes, and the square footage is usually higher. Homes like this will obviously take a lot of effort to renovate, and some people don't realize how much work there is.
While thinking about purchasing a fixer-upper, there are a few things you need to remember:
Take the time to do the research that is needed to get a full understanding of how much labor the home will require. 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. Completely redoing the plumbing or reinforcing the foundation can be a pain and cost thousands of dollars.
If the home's structure is not solid, then it is likely to be a bad investment. Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing. These problems can cost you.
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. 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. A home is insured based on it's condition, and the insurance provider will look at the plumbing and electrical carefully, as well as the heating and air conditioning, and how old the roof is. This is why:
The odds of structural weakness and leaks go up as the age of the roof increases. Aging plumbing will have more of a chance for leaks to happen, and that could cause even more costly water damage. Electrical systems that are older can pose a big fire risk, and the kinds that use fuse boxes and ungrounded power outlets are particularly bad.
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. Insurance premiums and the cost of the renovations need to be factored into your overall budget, so consider this carefully. Another thing to consider: Once you renovate the home, the risk will be lower but the replacement value will be higher. 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.
Old and new homes each have their pros and cons. Newer homes have been recently painted, they have new carpeting, and you can move in without much hassle. 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. 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. The price of a fixer-upper is typically lower than newer homes, and the square footage is usually higher. Homes like this will obviously take a lot of effort to renovate, and some people don't realize how much work there is.
While thinking about purchasing a fixer-upper, there are a few things you need to remember:
Take the time to do the research that is needed to get a full understanding of how much labor the home will require. 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. Completely redoing the plumbing or reinforcing the foundation can be a pain and cost thousands of dollars.
If the home's structure is not solid, then it is likely to be a bad investment. Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing. These problems can cost you.
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. 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. A home is insured based on it's condition, and the insurance provider will look at the plumbing and electrical carefully, as well as the heating and air conditioning, and how old the roof is. This is why:
The odds of structural weakness and leaks go up as the age of the roof increases. Aging plumbing will have more of a chance for leaks to happen, and that could cause even more costly water damage. Electrical systems that are older can pose a big fire risk, and the kinds that use fuse boxes and ungrounded power outlets are particularly bad.
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. Insurance premiums and the cost of the renovations need to be factored into your overall budget, so consider this carefully. Another thing to consider: Once you renovate the home, the risk will be lower but the replacement value will be higher. 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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