What could be potential implications of buying an old house (Chicago: appointed, insurance)

[Arun]

Folks,

I recently moved to Chicago and in the past I have owned houses which are 5 to 10 years old but this time we may have to buy an old one. We like a house which was built in 1974. It has brick front and wood sidings. I was just cusious what kind of issues you can have with old houses. I have heard:

- Furnace
- Pipes/Plumbing’s
- Sidings (Any issues with wood sidings??)
- What else?

Also do old house appreciate in value like new one? This one is a 500K house in Barrington.

Any feedback will be appreciated.

Thanks!

[Windy City John]

Have the home inspected by a professional home inspector before buying. Also have your home insurance company tell you what type of claims have been made on the house in the past.

On average, it is wise to budget 1% of home value for ongoing home maintenance. So on a $500,000 home, budget $5000 per year to keep the home maintained. You wont necessarily spend this at once, but a new roof will run you $12,000-$15,000. Wood siding needs painting or staining every 5 years. This will run you $2500-$4500. Water heaters last 8-10 years on average. Furnaces last up to 40 years, AC units probably 25-30 years if proerly maintained. Appliances usually fade out of popularity and style before they fail to operate properly.

You can buy a home warranty plan that will run you about $400/year. This will cover major repairs to "systems;" however, you do have to use their designated service vendors and some items are not covered.

On an older home look for telltale signs i.e. cracked foundations, settling, awkward repairs, water markings, etc. Also inquire as to what type of improvements have been made and who performed the improvement/repair services.

[mdz]

1974? That house is a mere chick...

Anyway, most important thing is the house inspection--you may want to see if you can do one even before you put in an offer. A good one can tell you estimated ages of things like the furnace, ac, water heater, windows (a huge expense that most people don't look at), etc so you know what you'll have to replace. Of course they can tell you other bad things that may be going on that may not be as obivous. Lead paint was banned in 78, there wasn't much used around 74 but you may want to think about having that checked as well.

We've got an 85 year old house, and really have had no major issues with it. Routine maintenance, and yeah, stuff does break down, but it does in our friends' houses that are 15 years old as well. Our biggest expense was deciding to replace the old drafty windows, and as mentioned above, we really didn't think about that when we bought the place. Our furnace was 25 years old when we bought it, and the home inspector told us to prepare for replacement--but last year we had it rechecked and the guy said it's working perfectly and no need to do so.

I'm probably biased on this, but I still think the construction standards from 30 years ago were a lot better than they are now. I just have visions of all these new mcmansions crumbling after 10 years because of the shoddy workmanship. Hopefully that's not the case, but I'm glad to be in an older house. There are some people who will always rather buy the newest place, but if you're buying in a place like Barrington there are so many older houses there I can't imagine you'd have to worry about the appreciation.

good luck

[via chicago]

Built in 1974? Old? Haha. Our house is is around 108. Now talk to me about old

(to be honest, americans have a warped sense of the word "old". i have friends in europe who live in 250 year old homes and drink in pubs that were founded before America was colonized. Our country is far younger, yes, but we are also a disposable society. there are people out there who wont buy anything but new construction..to each their own i guess)

[Attrill]

I agree with all the previous posts. Especially about 1974 being "old". Our house was built in 1879 and is rock solid. All our first floor floor joists are 4" X 14" X 20' beams of Black Walnut!

With any house (old or new) get it inspected by a professional home inspector, they know what to look for. Any problems that exist with an older house are more likely to be apparent than with new construction, since the house has been tested by time and any problems that exist will show (or at least the patch jobs or repairs will show).

New houses are no guarantee of of a solid house, I have a friend who bought a new house and during the first cold snap found out that the insulation on the first floor was placed over the pipes, basically insulating them from the inside of the house and causing them to freeze and burst.

[emmi605]

Our home, built in 1969 is better-built than many of the new construction you see around. We have many friends buy new construction to be sorely disappointed in the craftsmanship. Years ago I believe there was a stronger pride in quality. Don't let age be a determining factor. Get a reputable home inspector as suggested by many others. He/She will thoroughly check out the home and give you a detailed report of concerns. Some of these findings can also be used in negotiations at closing also. Your agent and lawyer can help with this. There are always expenses, but to repeat others....'74 is really young in the lifetime of a quality made home.

[iac74205]

You'll have no problems with appreciation. The main thing is A) that you like the house. It's layout, size, light, etc.

You will probably run into having replace older parts of the home, but this could also happen on a 10 year old house as well. As others have said, the quality of constuction is usually (not always, but usually) better in older homes. Have an inspection, get the potential problems taken care of by the current owner, and move in