Buying a home can be overwhelming. Not only is it one of the biggest purchases you will ever make but there are so many things to consider. Do you want a house with 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. On the other hand, a home like this is usually quite costly.
As for fixer-uppers, they are generally old. People have lived there and used the home for a long time. They often have more character but could require their new owners to launch a few do-it-yourself projects.
From shag carpet to outdated kitchen cabinets, these homes might seem like a mess. Another way to look at it is that they give you the potential to make them your own. Fixer-uppers commonly come with lower price tags and more square footage than newer homes. 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:
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. Completely redoing the plumbing or reinforcing the foundation can be a pain and cost thousands of dollars.
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 Steer clear of houses with structural damage, water damage, pests, and outdated wiring or plumbing. 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. Your lender will require you to purchase homeowners insurance if you are buying a home.
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:
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 Outdated electrical systems - particularly those that use fuse boxes and ungrounded power outlets - are a major fire risk.
If the home you are thinking about purchasing has some of these problematic issues, talk to your home insurance provider so you can estimate what it will cost to insure. 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.
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. 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.
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. On the other hand, a home like this is usually quite costly.
As for fixer-uppers, they are generally old. People have lived there and used the home for a long time. They often have more character but could require their new owners to launch a few do-it-yourself projects.
From shag carpet to outdated kitchen cabinets, these homes might seem like a mess. Another way to look at it is that they give you the potential to make them your own. Fixer-uppers commonly come with lower price tags and more square footage than newer homes. 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:
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. Completely redoing the plumbing or reinforcing the foundation can be a pain and cost thousands of dollars.
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. 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. Your lender will require you to purchase homeowners insurance if you are buying a home.
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:
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.
If the home you are thinking about purchasing has some of these problematic issues, talk to your home insurance provider so you can estimate what it will cost to insure. 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.
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. 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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For more home insurance related information, check out homeinsurancenews.ca . Or watch this Home Insurance video.
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