20 Days of Real Estate: Days 6 to 10 in Review

04/27/07 - 04:38 PM EDT

TSC Staff

Part 8. Test-Drive Your New Home
New construction doesn't necessarily guarantee high-quality workmanship. The recent U.S. building boom of new houses has left some homeowners dealing with serious construction defects.

Key Points:

  • Poor insulation has been one of the most pervasive construction problems in many new homes, resulting in water intrusion and mold.
  • Extended reconstruction can cost you a lot of wasted money on mortgage payments, taxes, insurance, homeowner's fees, and if it's an investment property, lost rental income.
  • When buying a property directly from a builder, do your due diligence. Prudent steps include checking the builder's recent track record of quality, getting a professional home inspection before you buy, and making sure that the purchase contract protects you in case any major structural problems arise.

To learn more, click here to read the full story.

Part 9. The Cost of Upkeep
The cost of homeownership involves more than simply making your mortgage payments. The ongoing expenses of maintaining real estate have a direct effect on how much property you can really afford.

Key Points:

  • Broad and somewhat fixed ownership costs can include homeowner association or condo association dues, property taxes, and city or county taxes.
  • More property-specific and variable costs can include utility bills, property insurance, regular maintenance and repair, and the eventual replacement of major appliances, components, and systems.
  • When evaluating the size and cost of your potential home, include operating cost estimates in your calculations. Plan to set aside a reserve for major scheduled replacements.

To learn more, click here to read the full story.

Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Free Newsletters from TheStreet

Cramer's Daily Booyah!
Highlights of Jim Cramer's videos
on TheStreet.com TV & his
"Mad Money" TV show.
Before the Bell
All the information you
need to position yourself
for the day ahead.
Submit
We respect your privacy.

Premium Stock Ideas
Access Action Alerts Plus to find out Cramer’s latest picks now!