Buying a home can be overwhelming. Not only is it one of the biggest purchases you will ever make but there are so many things to consider. How important is a big yard? Are there good schools nearby? 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.
There are positives and negatives for both older and newer homes. A new home has got clean carpet, fresh paint, its move-in ready and has that new house smell. On the other hand, a home like this is usually quite costly.
Fixer-uppers on the other hand, are older homes. The home has probably gone though many owners, and has been used for many years. 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. 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:
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. However, when there are significant problems with the foundation or the plumbing in the home, it could me many thousands of dollars to complete.
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 Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing.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.
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.
Typically, if you buy an older home, it could cost you more to insure. 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:
Structural weakness and leaks are more likely to occur in an older roof. Leaks are also more likely to happen with older plumbing, which can result in further water damage to your home. Electrical systems that are older can pose a big fire risk, and the kinds that use fuse boxes and ungrounded power outlets are particularly bad.
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. You'll need to keep your agent in the loop as you make repairs to make sure you still have enough coverage.
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. 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. A new home has got clean carpet, fresh paint, its move-in ready and has that new house smell. On the other hand, a home like this is usually quite costly.
Fixer-uppers on the other hand, are older homes. The home has probably gone though many owners, and has been used for many years. 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. 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:
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. However, when there are significant problems with the foundation or the plumbing in the home, it could me many thousands of dollars to complete.
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.
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.
Typically, if you buy an older home, it could cost you more to insure. 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:
Structural weakness and leaks are more likely to occur in an older roof. Leaks are also more likely to happen with older plumbing, which can result in further water damage to your home. Electrical systems that are older can pose a big fire risk, and the kinds that use fuse boxes and ungrounded power outlets are particularly bad.
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. You'll need to keep your agent in the loop as you make repairs to make sure you still have enough coverage.
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. 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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