As you buy your home, you will discover that most of the homes on the market are resale homes. However, one in four home buyers buy a new home. Both new homes and resale offer benefits. Before you make up your mind, let's get started. . .
Compare These Points!
New Homes
-offer innovative use of space and style
-greater energy efficiency
-a choice of options and upgrades
-everything is new and modern.
Existing Homes
-on the average, they are less expensive
-often they are in established neighborhoods with mature landscaping
-homes have already settled, eliminating possible problems that arise from this happening after the purchase of a home
As you can see, both have advantages. Most people consider both new and existing homes before deciding to buy. If you are thinking of buying a new home, here are 10 points to consider before visiting your first home model.
1. Specify a convenient price range
Before visiting your first model home, sit down with your agent and do your homework. You'll want to be prepared to be able to determine a convenient price range for your new home. If you own a home, you must first understand the net proceeds of selling it to determine how much cash you will have to work with. This is not enough to estimate, but to carefully calculate every possible selling cost. If you are a first-time buyer, you must qualify your income first. Determine your down payment, then calculate the monthly debt burden to find a convenient price range.
2. Sellers' Agents vs. Buyer Agent
This is worth remembering. The sales agent in the home model represents the builder, not you. They are known as sellers' agents. As a buyer, you can cooperate with a buyers agent at no extra cost. It is his / her business to best reflect your needs, having knowledge of home construction, warranties, financing, price differences, quality and even batch selection to get the best value for money.
3. Constructor for any occasion
Like all tradesmen, builders differ in their specialties. For example, there are builders who specialize in handicrafts, others are known for their innovative use of space, and those who offer submarket financing or customer care during construction and after relocation. Determine your own needs or preferences, then shop around for the builder that best meets your requirements.
4. Get the facts about your builder
Before making a final decision, it is worth checking the reputation and financial strength of the builder. Get spec sheets on home features covering everything from floor plans to energy efficiency, including plot availability and home delivery.
5. Check Out the Neighborhood
- Learn as much as you can about the community.
- Discover what amenities it has to offer.
- Investigate if financial reserves have been set aside to build or replace major amenities like schools or community roads
- Find out from local land-use officials what else is planned or could be constructed in the area, especially where vacant land is applicable.
- Review the rules for the homeowner’s association, or find out if one will be set up.
- Think of how you will be affected by commuting routes and times.
6. Choice of options and upgrades
The cheaper the basic price of your home, the more options and upgrades you can add without worrying about overpricing your neighborhood. Options are items that a constructor installs during construction, such as adding a usable space such as a sunlit room or a powder room. These features can add the most value to your home's resale value. Upgrading means choosing quality above the "builder's standard" such as carpets, ceramics, detailing, kitchen equipment and appliances. Take advantage of builder incentives that offer free upgrades or a sale price credit. Remember that you can add a terrace, a finished basement or landscaping later, and sometimes for less money.
7. Negotiation
Buyers often don't realize that there may be room to negotiate price, upgrades, or options. For example, you have some negotiating power with a builder if he has a house completed but has not sold it. Also, some "premium lots" have a higher price and are sometimes saved to be sold last. Remember that usually all lots cost the constructor the same, so be sure to ask about the lot prices. Builders may offer discounts or special financing to help complete the sale.
8. Make sure the deal is working in your favor!
When presenting the details of your contract with the builder, make sure you protect yourself by writing down safeguards in the contract, such as:
- making a deposit to the Escrow account
- listing your updates;
- allowing access to the construction site to check progress;
- 30 days notice of the closing date.
- an explanation of what fine print means in the manufacturer's and manufacturer's guarantees.
9. Financing - what's best for you?
Some builders, especially in high volume communities that make a lot of loans, may offer special financial packages. However, because "home" loans are highly competitive, you have many financing options other than those offered by the builder. Shop around for everything from rates to lender's fees. Ratings, inspections, surveys, attorney services, and closing fees may also vary.
10. Just because it is new. -Does not mean he is perfect
Yes, it is new and usually made of durable, easy to maintain, strong, quiet and safe modern materials. However, since nothing is perfect, even if it is new, please consider hiring a reputable licensed housing inspector. Then create a "vulnerability list" in the troubleshooting method based on what you have learned before exiting. Consider budgeting for projects that you will modify or add in the future. Many new home buyers use real estate agents to help them negotiate the best prices and terms with contractors.
The buyer's advantage your builder may not reveal!
You may not know this is a fact, some builders have newly constructed houses that can be delivered immediately. Usually, these houses are ready to move in within 30 days. Even if some builders are eager to sell, they may keep this knowledge to themselves. For various reasons, home delivery can usually be provided immediately:
- the community, where new homes are being constructed is nearly complete, so the builder proceeds to have the on-site-contractors build “spec” homes (homes built on speculation for sale) on the last lots;
- the model home is for sale;
- the contract on a home has fallen through;
- builders include constructing homes for immediate delivery for buyers who are relocating or who have sold their previous home and need one to move into quickly.
It may be preferable to deliver the house immediately because sometimes builders offer financing concessions or free options. This can be done instead of lowering the price to attract buyers to buy later in the construction phase. If you need to move quickly or need physical space to walk around before signing a contract, and then look again, delivering the house immediately is an advantageous way to buy a house. Be sure to check.
Thinking about BUYING or SELLING a Home,
Parveen Tiwari can help you and if you have any questions in regards to real estate, then you must call Me today! at
647-494-0009
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Parveen Tiwari
647-494-0009
Sales Representative
YOUR HOME SOLD GUARANTEED OR I’LL BUY IT!*
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