Buying a home can be overwhelming. 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. How important is 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.
Old and new homes each have their pros and cons. A new home has got clean carpet, fresh paint, its move-in ready and has that new house smell. However, these homes often come with a hefty price tag.
A fixer-upper has been around a while, and can be quite old. They have been lived-in and used. They often have more character but could require their new owners to launch a few do-it-yourself projects.
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. The price of a fixer-upper is typically lower than newer homes, and the square footage is usually higher. But always remember that they will require some work - maybe more than you think.
If you are looking at buying a fixer-upper, consider the following steps:
In order to accurately assess how much work will be needed for the home, do the necessary research. Things like painting and installing new carpet won't take long, and are relatively inexpensive. However, when there are significant problems with the foundation or the plumbing in the home, it could me many thousands of dollars to complete.
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 Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing. 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.
Usually, older homes cost more to insure than newer ones. Home insurance carriers pay special attention to the age of the roof, electrical and plumbing fixtures, and heating and air conditioning systems. Here's why:
An older roof is more prone to leaks and structural weakness. Leaks are also more likely to happen with older plumbing, which can result in further water damage to your home. Outdated electrical systems - particularly those that use fuse boxes and ungrounded power outlets - are a major fire risk.
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. Your insurance provider must be informed about your renovation and repair plans so that your coverage will be sufficient.
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. A home inspector will be able to see damage that is concealed or otherwise hard to find, and this will protect you from moving in and then finding that the structural damage to your home is severe because of termites or something else that you didn't notice yourself.
Old and new homes each have their pros and cons. A new home has got clean carpet, fresh paint, its move-in ready and has that new house smell. However, these homes often come with a hefty price tag.
A fixer-upper has been around a while, and can be quite old. They have been lived-in and used. They often have more character but could require their new owners to launch a few do-it-yourself projects.
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. The price of a fixer-upper is typically lower than newer homes, and the square footage is usually higher. But always remember that they will require some work - maybe more than you think.
If you are looking at buying a fixer-upper, consider the following steps:
In order to accurately assess how much work will be needed for the home, do the necessary research. Things like painting and installing new carpet won't take long, and are relatively inexpensive. However, when there are significant problems with the foundation or the plumbing in the home, it could me many thousands of dollars to complete.
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. 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.
Usually, older homes cost more to insure than newer ones. Home insurance carriers pay special attention to the age of the roof, electrical and plumbing fixtures, and heating and air conditioning systems. Here's why:
An older roof is more prone to leaks and structural weakness. Leaks are also more likely to happen with older plumbing, which can result in further water damage to your home. Outdated electrical systems - particularly those that use fuse boxes and ungrounded power outlets - are a major fire risk.
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. Your insurance provider must be informed about your renovation and repair plans so that your coverage will be sufficient.
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. A home inspector will be able to see damage that is concealed or otherwise hard to find, and this will protect you from moving in and then finding that the structural damage to your home is severe because of termites or something else that you didn't notice yourself.
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