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. Is a big yard something that is important to you? Are there good schools nearby? 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.
There are positives and negatives for both older and newer homes. For a new home, you don't need to worry about painting, the carpeting is in perfect condition, and moving in is relatively easy. 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A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen.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. Fixer-uppers commonly come with lower price tags and more square footage than newer homes. 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:
Do your research to determine the difference between an easy and difficult fix. Changing the carpet or paint color doesn't take a huge amount of effort and won't break the bank. 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. If the house has major issues like water damage, structural damage, wiring or plumbing that is outdated, or pests, it's wise to look elsewhere. 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. 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. Here's why:
Structural weakness and leaks are more likely to occur in an older roof. Aging plumbing will have more of a chance for leaks to happen, and that could cause even more costly water damage. 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.
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.
There are positives and negatives for both older and newer homes. For a new home, you don't need to worry about painting, the carpeting is in perfect condition, and moving in is relatively easy. 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. Fixer-uppers commonly come with lower price tags and more square footage than newer homes. 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:
Do your research to determine the difference between an easy and difficult fix. Changing the carpet or paint color doesn't take a huge amount of effort and won't break the bank. 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. 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. 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. 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. Here's why:
Structural weakness and leaks are more likely to occur in an older roof. Aging plumbing will have more of a chance for leaks to happen, and that could cause even more costly water damage. 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.
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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