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? Near great schools? Decisions like these need to be made, but then you need to consider if you want a home that is older, or one that is more modern.
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. 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.
A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen. Another way to look at it is that they give you the potential to make them your own. 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.
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. 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. Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing. 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. 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. 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. For good reason:
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. Keep in mind that the renovations that you do, and your overall home budget needs to be considered which include your insurance premiums. 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.
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. 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.
A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen. Another way to look at it is that they give you the potential to make them your own. 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.
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. 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. Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing. 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. 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. 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. For good reason:
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. Keep in mind that the renovations that you do, and your overall home budget needs to be considered which include your insurance premiums. 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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