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. How important is a big yard? Do you require a good school close by? 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.
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. 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.
A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen. The positive way to look at it is that you have the chance to add your own personal touch to the home. Fixer-uppers commonly come with lower price tags and more square footage than newer homes. But always remember that they will require some work - maybe more than you think.
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. It can be quite costly to redo the plumbing, and if repairs are needed on the foundation itself, it is another major process.
If the home's structure is not solid, then it is likely to be a bad investment. If the house has major issues like water damage, structural damage, wiring or plumbing that is outdated, or pests, it's wise to look elsewhere. These problems can cost you.
In order to figure out insurance costs and keep track of needed repairs, keep a note pad with you while you check out homes and write it all down. You will be required by your lender when buying a home to also purchase 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. 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. Don't forget to talk to your insurance agent about the renovations you're planning in order to maintain the level of insurance that you require.
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. 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.
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. 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.
A home like this could still have old style shag carpeting, not to mention other outdated features like the cabinets in the kitchen. The positive way to look at it is that you have the chance to add your own personal touch to the home. Fixer-uppers commonly come with lower price tags and more square footage than newer homes. But always remember that they will require some work - maybe more than you think.
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. It can be quite costly to redo the plumbing, and if repairs are needed on the foundation itself, it is another major process.
If the home's structure is not solid, then it is likely to be a bad investment. If the house has major issues like water damage, structural damage, wiring or plumbing that is outdated, or pests, it's wise to look elsewhere. These problems can cost you.
In order to figure out insurance costs and keep track of needed repairs, keep a note pad with you while you check out homes and write it all down. You will be required by your lender when buying a home to also purchase 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. 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. Don't forget to talk to your insurance agent about the renovations you're planning in order to maintain the level of insurance that you require.
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. 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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For more home insurance related information, check out homeinsurancenews.ca . Or watch this Home Insurance video.
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