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.
There are positives and negatives for both older and newer homes. 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. People have lived there and used the home for a long time. 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A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen.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. 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.
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. 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.
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 Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing.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. Your lender will require you to purchase homeowners insurance if you are buying a home.
In most cases, it will be more costly to insure an older home. Home insurance carriers pay special attention to the age of the roof, electrical and plumbing fixtures, and heating and air conditioning systems. 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. Outdated electrical systems - particularly those that use fuse boxes and ungrounded power outlets - are a major fire risk.
If the home you are thinking about purchasing has some of these problematic issues, talk to your home insurance provider so you can estimate what it will cost to insure. 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. You'll need to keep your agent in the loop as you make repairs to make sure you still have enough coverage.
Even if you have fallen in love with a particular home, take the time to have a home inspection before making a solid offer on the home. 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.
There are positives and negatives for both older and newer homes. 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. People have lived there and used the home for a long time. 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. 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.
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. 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.
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. Your lender will require you to purchase homeowners insurance if you are buying a home.
In most cases, it will be more costly to insure an older home. Home insurance carriers pay special attention to the age of the roof, electrical and plumbing fixtures, and heating and air conditioning systems. 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. Outdated electrical systems - particularly those that use fuse boxes and ungrounded power outlets - are a major fire risk.
If the home you are thinking about purchasing has some of these problematic issues, talk to your home insurance provider so you can estimate what it will cost to insure. 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. You'll need to keep your agent in the loop as you make repairs to make sure you still have enough coverage.
Even if you have fallen in love with a particular home, take the time to have a home inspection before making a solid offer on the home. 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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