Buying a home can be overwhelming. 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? 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.
Newer and older homes have their own negative and positive attributes. 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.
As for fixer-uppers, they are generally old. The home has probably gone though many owners, and has been used for many years. These kind of homes typically have some character, but the new homeowner usually has a long list of repairs or renovations to do.
They could have kitchen cabinets that are from the 1960s, and shag carpeting which is no longer in style. 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. Keep in mind that these homes will require you to put in significant labor - don't underestimate what it will take to complete.
While thinking about purchasing a fixer-upper, there are a few things you need to remember:
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. 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. If the house has major issues like water damage, structural damage, wiring or plumbing that is outdated, or pests, it's wise to look elsewhere. Issues like this can be very expensive to fix.
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. 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:
An older roof is more prone to leaks and structural weakness. 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 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. 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. The home may look perfect to you, but the home inspector will be able to identify hard to see problems so that you don't find out after you move in that there are termites that have damaged the home's structural integrity.
Newer and older homes have their own negative and positive attributes. 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.
As for fixer-uppers, they are generally old. The home has probably gone though many owners, and has been used for many years. These kind of homes typically have some character, but the new homeowner usually has a long list of repairs or renovations to do.
They could have kitchen cabinets that are from the 1960s, and shag carpeting which is no longer in style. 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. Keep in mind that these homes will require you to put in significant labor - don't underestimate what it will take to complete.
While thinking about purchasing a fixer-upper, there are a few things you need to remember:
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. 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. 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. Issues like this can be very expensive to fix.
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. 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:
An older roof is more prone to leaks and structural weakness. 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 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. 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. The home may look perfect to you, but the home inspector will be able to identify hard to see problems so that you don't find out after you move in that there are termites that have damaged the home's structural integrity.
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