What should you know about buying an older house?

If you’re considering buying an older house, there are a lot of important factors to think about before committing to the purchase. While an older home can certainly be a unique find, they have their own sets of needs that don’t often apply to newer houses. Here are some key things to think about before buying an old home!

Need for renovations

If you’re buying an older house, one of the first things you’ll have to accept is that styles and tastes have evolved since the home was built. If your new property is still in its original state with early or mid 20th century designs, you might want to consider some home renovations. This isn’t quite the same as purchasing a fixer-upper and gutting the house completely, but odds are good you’ll still want to make some significant changes. For example, you might be dealing with old wallpaper, worn out carpeting, or the popular pink bathroom trend that thrived during the 1950s. Even if you compare what was considered trendy 10 years ago to today’s styles, you’ll find some big differences. When you purchase a home that’s stuck in the last century, it likely means you have some work to do.

Potential for big repairs

Another thing about older homes is they might not be in the best shape. This is normal, considering how long they have been standing and how much our technologies have changed since they were built. However, it means you need to be able to support big home maintenance costs. Everything from a house’s roof to its flooring will need replacements at some point in its life. It’s possible your new purchase never had any of these treatments. Old houses will often need a lot of repairs done in the near future. When you buy a home like this, you need to know you’re paying for more than just a mortgage. You’re also going to be financing the necessary work to make the home liveable. 

Consider the property layout

Housing styles and layouts have gone through big changes over the years. Throughout the decades, a common home owner’s needs and wants evolved, and buildings created during those times are a reflection of what was in style. For example, a home that was built within the first decade of the 20th century probably wouldn’t have a garage, since cars weren’t a common asset to own. Finished basements weren’t a popular project until closer to the end of the century, and many old houses had much smaller bedrooms. These are things you need to consider before making the purchase on an old house. Some issues can be easy fixes, while others are things you will have to make peace with.  

Insurance costs

As you know, your home purchase will also require buying home insurance. Unsurprisingly, the insurance costs on an older house are likely to be higher than on a newer home. This is because the older the home, the more likely it is to need repairs and replacements. Plus, a very old house will have older styles of wiring and fuel tanks, which can increase the chances of house fires or fuel leaks. All of this means you will be paying higher rates to insure the property. Make sure this is a cost you can afford to take on! Home buyers often forget to account for these types of closing costs in their budget. If you’re buying an older home, however, it’s important not to let it slip your mind.

Do NOT skip the inspection

Finally, it is 100 per cent essential to have a thorough home inspection performed on the property you’re buying. This is true for all home purchases, but it is especially important for an older house. We already talked about the costs of repairs and maintenance, but a home inspection will help you determine how major those costs might be. If it turns out the property will need so much work done that you can’t justify the purchase, you will be free to walk away from the sale without losing anything. However, skipping the inspection means you will be on the hook for all those repairs as the new owner. You are likely expecting to face some big repair bills with this kind of purchase, but it’s still good to know just how steep those bills may be.

Buying an older house can be a cool way to step back in time. However, it’s also important to consider all the baggage that comes with this type of property. Having a grasp on what’s involved with this kind of purchase will help you decide if it’s right for you. You should also reach out to a mortgage broker to discuss your financial situation! This will help you understand your purchasing power, and ensure you end up buying a home that works for you.

If you have any questions about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.