05:43:00
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. Do you want a house with a big yard? Near great schools? 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. On the other hand, a home like this is usually quite costly.
A fixer-upper has been around a while, and can be quite old. They have been lived-in and used. These kind of homes typically have some character, but the new homeowner usually has a long list of repairs or renovations to do.
A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen. The positive way to look at it is that you have the chance to add your own personal touch to the home. 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:
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.
For you to invest your money in a house, protect your investment by making sure the home's structure is in good shape. Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing. 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. When you purchase a home, your lender will require you to buy homeowners insurance.
In most cases, it will be more costly to insure an older home. 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. Older electrical systems that use ungrounded power outlets and fuse boxes especially carry a significant fire hazard.
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. 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. 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.
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. On the other hand, a home like this is usually quite costly.
A fixer-upper has been around a while, and can be quite old. They have been lived-in and used. These kind of homes typically have some character, but the new homeowner usually has a long list of repairs or renovations to do.
A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen. The positive way to look at it is that you have the chance to add your own personal touch to the home. 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:
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.
For you to invest your money in a house, protect your investment by making sure the home's structure is in good shape. Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing. 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. When you purchase a home, your lender will require you to buy homeowners insurance.
In most cases, it will be more costly to insure an older home. 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. Older electrical systems that use ungrounded power outlets and fuse boxes especially carry a significant fire hazard.
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. 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. 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.
About the Author:
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