There is a lot to think about when purchasing a home. Not only is it one of the biggest purchases you will ever make but there are so many things to consider. Is a big yard something that is important to you? 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.
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. 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. 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. The positive way to look at it is that you have the chance to add your own personal touch to the home. 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.
While thinking about purchasing a fixer-upper, there are a few things you need to remember:
Take the time to do the research that is needed to get a full understanding of how much labor the home will require. Things like painting and installing new carpet won't take long, and are relatively inexpensive. Completely redoing the plumbing or reinforcing the foundation can be a pain and cost thousands of dollars.
The structure of the house should be sound in order to make it a worthwhile investment. If there is structural damage, antiquated wiring or plumbing, pests, or water damage, it's best to look at another home. Issues like this can be very expensive to fix.
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. This is why:
An older roof is more prone to leaks and structural weakness. Older plumbing is subject to leaks that can lead to long-term 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. 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.
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. 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. 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. 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. The positive way to look at it is that you have the chance to add your own personal touch to the home. 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.
While thinking about purchasing a fixer-upper, there are a few things you need to remember:
Take the time to do the research that is needed to get a full understanding of how much labor the home will require. Things like painting and installing new carpet won't take long, and are relatively inexpensive. Completely redoing the plumbing or reinforcing the foundation can be a pain and cost thousands of dollars.
The structure of the house should be sound in order to make it a worthwhile investment. If there is structural damage, antiquated wiring or plumbing, pests, or water damage, it's best to look at another home. Issues like this can be very expensive to fix.
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. This is why:
An older roof is more prone to leaks and structural weakness. Older plumbing is subject to leaks that can lead to long-term 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. 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.
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. 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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