Buying a home can be overwhelming. There is a lot to keep in mind, especially since this is considered the single most important purchase in the lives of most people. How important is a big yard? Are there good schools nearby? The options can seem endless, but one decision you will ultimately have to make is whether you want to buy an older or newer home.
Newer and older homes have their own negative and positive attributes. 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.
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.
From shag carpet to outdated kitchen cabinets, these homes might seem like a mess. A good way to think about it is that you have an opportunity to style the home according to your own taste. A fixer-upper home is usually less costly, and the square footage is typically more than what a newer home has to offer. Homes like this will obviously take a lot of effort to renovate, and some people don't realize how much work there is.
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. 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. 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.
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. You will be required by your lender when buying a home to also purchase homeowners insurance.
In most cases, it will be more costly to insure an older home. Home insurance carriers pay special attention to the age of the roof, electrical and plumbing fixtures, and heating and air conditioning systems. This is why:
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. Older electrical systems that use ungrounded power outlets and fuse boxes especially carry a significant fire hazard.
If you are interested in a home with a higher risk problem, it's a good idea to call and get an idea of your home insurance premiums. Remember, you'll need to include those premiums - as well as renovation costs - as part of your overall budget for your home purchase. 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. You'll need to keep your agent in the loop as you make repairs to make sure you still have enough coverage.
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.
Newer and older homes have their own negative and positive attributes. 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.
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.
From shag carpet to outdated kitchen cabinets, these homes might seem like a mess. A good way to think about it is that you have an opportunity to style the home according to your own taste. A fixer-upper home is usually less costly, and the square footage is typically more than what a newer home has to offer. Homes like this will obviously take a lot of effort to renovate, and some people don't realize how much work there is.
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. 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. 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.
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. You will be required by your lender when buying a home to also purchase homeowners insurance.
In most cases, it will be more costly to insure an older home. Home insurance carriers pay special attention to the age of the roof, electrical and plumbing fixtures, and heating and air conditioning systems. This is why:
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. Older electrical systems that use ungrounded power outlets and fuse boxes especially carry a significant fire hazard.
If you are interested in a home with a higher risk problem, it's a good idea to call and get an idea of your home insurance premiums. Remember, you'll need to include those premiums - as well as renovation costs - as part of your overall budget for your home purchase. 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. You'll need to keep your agent in the loop as you make repairs to make sure you still have enough coverage.
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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