There is a lot to think about when purchasing a home. There is a lot to keep in mind, especially since this is considered the single most important purchase in the lives of most people. Is a big yard something that is important to you? 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. Newer homes have been recently painted, they have new carpeting, and you can move in without much hassle. However, these homes often come with a hefty price tag.
Fixer-uppers on the other hand, are older homes. The home has probably gone though many owners, and has been used for many years. They often have more character but could require their new owners to launch a few do-it-yourself projects.
A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen.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. 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.
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. However, when there are significant problems with the foundation or the plumbing in the home, it could me many thousands of dollars to complete.
If the home's structure is not solid, then it is likely to be a bad 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 Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing.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.
Usually, older homes cost more to insure than newer ones. 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. For good reason:
Structural weakness and leaks are more likely to occur in an older roof. Aging plumbing will have more of a chance for leaks to happen, and that could cause even more costly water damage. 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. After renovation, the replacement value of your home will go up as the risks associated with the older home go down, so keep that in mind. 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. 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. Newer homes have been recently painted, they have new carpeting, and you can move in without much hassle. However, these homes often come with a hefty price tag.
Fixer-uppers on the other hand, are older homes. The home has probably gone though many owners, and has been used for many years. They often have more character but could require their new owners to launch a few do-it-yourself projects.
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. 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.
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. However, when there are significant problems with the foundation or the plumbing in the home, it could me many thousands of dollars to complete.
If the home's structure is not solid, then it is likely to be a bad 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.
Usually, older homes cost more to insure than newer ones. 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. For good reason:
Structural weakness and leaks are more likely to occur in an older roof. Aging plumbing will have more of a chance for leaks to happen, and that could cause even more costly water damage. 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. After renovation, the replacement value of your home will go up as the risks associated with the older home go down, so keep that in mind. 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. 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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