When buying a new home, there is much to consider. 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? Do you require a good school close by? 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.
A fixer-upper has been around a while, and can be quite old. They have been lived-in and used. Homes like this usually come along with some remodelling or repairs, but they have the advantage of having unique characteristics.
They could have kitchen cabinets that are from the 1960s, and shag carpeting which is no longer in style. The positive way to look at it is that you have the chance to add your own personal touch to the home. 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:
Take the time to do the research that is needed to get a full understanding of how much labor the home will require. Changing the carpet or paint color doesn't take a huge amount of effort and won't break the bank. Completely redoing the plumbing or reinforcing the foundation can be a pain and cost thousands of dollars.
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 If the house has major issues like water damage, structural damage, wiring or plumbing that is outdated, or pests, it's wise to look elsewhere. Making major repairs like this will be very costly.
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:
Structural weakness and leaks are more likely to occur in an older roof. Older plumbing is subject to leaks that can lead to long-term 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. Insurance premiums and the cost of the renovations need to be factored into your overall budget, so consider this carefully. Something else that needs to be considered is that while your risk will be lower after renovation, the cost of replacing the home will increase. Your insurance provider must be informed about your renovation and repair plans so that your coverage will be sufficient.
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. 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. 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.
A fixer-upper has been around a while, and can be quite old. They have been lived-in and used. Homes like this usually come along with some remodelling or repairs, but they have the advantage of having unique characteristics.
They could have kitchen cabinets that are from the 1960s, and shag carpeting which is no longer in style. The positive way to look at it is that you have the chance to add your own personal touch to the home. 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:
Take the time to do the research that is needed to get a full understanding of how much labor the home will require. Changing the carpet or paint color doesn't take a huge amount of effort and won't break the bank. Completely redoing the plumbing or reinforcing the foundation can be a pain and cost thousands of dollars.
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. Making major repairs like this will be very costly.
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:
Structural weakness and leaks are more likely to occur in an older roof. Older plumbing is subject to leaks that can lead to long-term 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. Insurance premiums and the cost of the renovations need to be factored into your overall budget, so consider this carefully. Something else that needs to be considered is that while your risk will be lower after renovation, the cost of replacing the home will increase. Your insurance provider must be informed about your renovation and repair plans so that your coverage will be sufficient.
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. 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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