When it comes to looking for a place to call home, you’ll likely come across a variety of options. While most homes on the market are resale, there is a growing trend of one in four homebuyers opting for new homes. Each option has its advantages. Before you decide on your first visit to your model home, let’s explore the pros and cons of each new home vs resale home.
LET US COMPARE THESE POINTS!
- offer innovative use of space and style
- greater energy efficiency
- a choice of options and upgrades
- everything is new and modern
- on 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 home
Hiring a real estate agent is not easy as the decision you make can potentially save or cost you thousands of dollars. The right agent will provide second-mile service to help you buy your dream home for a great deal and get your home sold fast and for top dollar. It’s important to hire an agent that will represent you best, so make sure to ask potential agents the right questions. In fact, some agents may be reluctant to answer these questions, but remember that knowing the truth can help determine if they are the right fit for you. Since not all agents are created equal, approach the hiring process with care. Think of yourself as the boss and select an agent who is the best fit for your needs because this is your biggest financial investment!
Ten Key Factors to Contemplate Before You Start Visiting Model Homes
When it comes to purchasing a home, there are benefits to both new and existing properties. Many people weigh their options before deciding on the best choice. If you’re leaning towards buying a new home, here are ten key factors to contemplate before you start visiting model homes.
Get in Touch with Your Agent.
Before visiting model homes, it’s essential to do your homework. That way, you can sit down with your agent and discuss your financial situation to establish a comfortable price range for your new home. Here are some key steps to follow:
- Calculate Net Proceeds: If you currently own a home, it’s crucial to determine the net proceeds from its sale before starting your search. Be sure to take into account all possible selling costs to obtain an accurate figure.
- Qualify Your Income: As a first-time home buyer, you’ll need to qualify your income. This will help you determine the size of your down payment and establish a monthly debt load to calculate a comfortable price range.
By following these steps, you’ll be better prepared to visit model homes and find your ideal property.
Sellers’ Agents Versus Buyers’ Agents.
It’s important to remember that the sales agent in the model home represents the builder’s interests – not yours. They are known as the seller’s agents. As a buyer, it is important to work with a buyers’ agent, who can provide knowledgeable guidance about home construction, warranties, financing, pricing, quality, and lot selection. The best part? Working with a buyer’s agent is typically free and ensures that your needs are represented and that you get the best value for your money.
A Builder For All Reasons
Just like other tradespeople, builders have unique areas of expertise. Some excel in craftsmanship, others in innovative use of space, and some offer exceptional customer service or below-market financing. It’s important to determine your specific needs and preferences, and then search for a builder who can best meet those requirements.
Get the Facts About Your Builder
Before finalizing your decision on a home builder, it’s important to conduct research on their reputation and financial stability. Obtain a “spec sheet” outlining the features of the home, from floor plans to energy efficiency, as well as information on lot availability and the expected delivery time for your home.
Check Out the Neighborhood
When considering a new community, it is important to gather as much information as possible. This includes learning about the community itself and the amenities it offers. It is also important to investigate whether there are any financial reserves set aside for building or replacing major amenities like schools or community roads. Additionally, it is helpful to speak with local land-use officials to find out what other developments are planned or could be constructed in the area. Reviewing the rules of the homeowner’s association or finding out if one will be set up is also crucial. Lastly, it is important to consider how commuting routes and times will affect you.
Choosing Options and Upgrades
If you are on the verge of building a home, the base price of the house is a crucial factor to consider. Opting for the least expensive base price allows you to include various options and upgrades without the risk of overpricing the property for the neighborhood. During construction, the builder may include options, such as a sunroom or powder room. These features are excellent additions that can significantly increase the resale value of your home.
Upgrading the quality of materials and fixtures, such as carpeting, ceramics, kitchen appliances, and fixtures, is another way to add value to your home. Take advantage of builder incentives that offer free upgrades or credit off the sale price. Furthermore, remember that adding a deck, finished basement, or landscaping can be done later and may even cost less.
Buyers often overlook the possibility of negotiating price, upgrades, or options when purchasing a new home. It’s important to consider the following tips before finalizing your purchase:
- If a builder has completed a home but hasn’t sold it, there may be some room for negotiation.
- “Premium lots” are often priced higher and kept for last. Inquiring about the lot pricing is essential since all lots cost the builder the same.
- Builders may offer discounts or special financing to help close a sale. Keep this in mind when discussing terms with them.
Be Sure the Contract Works in Your Favor
To protect your interests when making an agreement with your builder, it’s important to have safeguards in place. Here are some key measures to consider:
- Place your deposit in escrow
- Detail any upgrades in writing
- Ensure you can access the construction site to check on progress
- Request a 30-day notice of the closing date
- Ask for clarification on warranty fine print from both the builder and manufacturer.
Financing — What’s Best for You?
Although some builders, particularly those in high-volume communities that handle numerous loans, may provide unique financing packages, there are several financing alternatives available to you beyond those offered by the builder. Since the home loan market is highly competitive, it’s important to shop around for everything, from interest rates to lender fees. Additionally, fees for appraisals, inspections, surveys, attorneys, and closing can vary. Be sure to explore all of your options before making a decision.
Just Because it’s New… Doesn’t Mean it’s Perfect
You may have purchased a brand-new home built with modern, long-lasting, low-maintenance, and strong materials – but it’s important to keep in mind that nothing is perfect. Consider hiring a licensed home inspector to ensure quality and safety. From there, create a builder “punch list” to address any issues before you close. It’s also a good idea to budget for any modifications or additions you may want in the future. Many new buyers enlist the help of a real estate agent to negotiate the best price and terms with the builder.
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Move Up to Any One of My Listings and I’ll Buy Your Home for CASH!*
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One of the many benefits my clients get to enjoy is the use of our moving truck not only when they close a sale on home but in a lifetime for free!**
Why Shelly Salas is The Perfect Agent for You
Shelly Salas Can Help You With All Your Real Estate Needs
From selling houses fast for top dollar to helping you buy your dream home for a great deal, I know what it takes to make your real estate journey a success.
Additionally, at Your Home Sold Guaranteed Realty – The Salas Team, you’re not just another client. Each home-seller or homebuyer receives world-class personal customer service.
With my vast knowledge of the real estate market, I can help you buy or sell your home stress-free. My tips and guidance will get your home sold fast, for top dollar, and with the least amount of hassle. Don’t just take my word for it – my record of selling more homes than any other agent in Killeen speaks for itself. Call Shelly Salas Today at 855-331-SOLD or fill out the form located at the bottom of this page to get started!
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