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? Do you require a good school close by? 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. Newer homes have been recently painted, they have new carpeting, and you can move in without much hassle. One big negative of a new home is that the price is often quite high.
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A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen.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. 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.
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. 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.
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. These problems can cost you.
As you tour homes, make note of the items that need to be fixed, and don't forget about insurance costs. 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. 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.
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. 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. You won't be able to see all of the problems that a home inspector might see, and you definitely don't want to buy a house and then later find out termites have caused extensive structural damage.
Newer and older homes have their own negative and positive attributes. Newer homes have been recently painted, they have new carpeting, and you can move in without much hassle. One big negative of a new home is that the price is often quite high.
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. 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.
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. 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.
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. These problems can cost you.
As you tour homes, make note of the items that need to be fixed, and don't forget about insurance costs. 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. 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.
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. 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. You won't be able to see all of the problems that a home inspector might see, and you definitely don't want to buy a house and then later find out termites have caused extensive structural damage.
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