New Home Buying Tips
Although most homes for sale are resale’s, about 1 out of 7 homes that are sold are new homes. But the real question is – which one is better for you?
The right answer, of course, is that it depends on your interests and needs. Both resale homes and new homes offer advantages. Existing homes are less expensive on average, and are generally much closer to town. They also are in established neighborhoods that have reached a maturity curve on value.
New homes, on the other hand, offer newer designs, more innovative use of interior space, more modern efficient heating/cooling/and appliances – and offer choices of options & upgrades that you get to pick (…and pay for!) Everything is new – including all your new neighbors.
1. Find a Good Realtor Before You Start Looking
The representatives at a new home development repesent the builder. You deserve the same quality representation.
2. Find a good lender
Most people go about looking for houses backwards – the wrong way – because they waste valuable time driving around new home sites and calling on resale homes that they may not qualify to buy. A good Lender will let you know your purchasing limits before you begin the process. They will also pre approve you as well.
3. Are You Protected – Do You Have a Buyers Agent?
Here’s a good point to remember – the salesperson at the builder’s model homes represents the builder, not you. As a buyer, you can and always should work with a Realtor representing you as your Buyers Agent.
When you have a Realtor to represent you, we actually get paid by the builder to represent you. These reason it’s important to have a Realtor at a new home builder is because we can help in negotiating a better deal, be available to help you answer questions about the construction, warranties, financing, differences in pricing, negotiating lot premiums, and most importantly – explaining your legal rights on the contract and how that can affect you.
4. Understand What You Want and Need In Your Next Home
A great way to get a handle on your wants is to take a good look at your present home. What do you like about it? Do you like its open floor plan? Do you like the master bedroom and master bathroom layout? Do you like the kitchen and eating areas? Do you like the common area layout – the family room & living room?Understand What Each Other Is Looking For, And why.
5. How to Pick Upgrades and Options
The most fun about buying a new house is that you usually get to pick out all the furnishings, colors, appliances and other ‘fun’ stuff. But, what you need and what you want might actually be two different things!
If you can afford all the upgrades and options – well that’s great! But unfortunately, lots of buyers end up getting over their budgets – and it ends up creating a financial burden for them – in the long run –years after you buy the house! Be very careful with this issue. The upgrades of a kitchen or bathrooms will always add more long term value to your property.
6. Negotiations
It surprises me that buyers don’t realize that there may be room for negotiating on price, upgrades or options – even if the onsite reps say ‘no’ to that. For example, you might be able to get a better price if a home has been put back up for sale, after another buyer couldn’t get financing, or if a completed home hasn’t sold yet, or if a premium lot hasn’t been sold yet, or if a ‘bad’ lot isn’t selling - or several other ways... As your Realtor – I’ve got several options to help you get a better deal!
7. Signing Their Contracts
In Texas, we have one of the best home purchase contracts in the nation It’s pre-written and used on every home purchase transaction - by every Realtor in Texas. New home builders may deviate from the guidelines set forth by the Texas Real Estate Commission – so when you buy a new home in Texas, you may sign some additional addendums.
8. Just Because it’s New – Doesn’t Mean It’s Perfect!
Yes - the home is brand new, and typically it’s built with more modern materials, supplies and fixtures/appliances. But nothing is perfect – and the best products in the world are worthless is they have been constructed poorly, sloppily or the quality of workmanship was not good. Always inspect any home you are considering purchasing.
9.You Don’t Make Money When You Sell Real Estate, You Make Money When You BUY It…
Do you see the statement above? Someone once told me it was written backwards - that you only “make” money when you sell real estate. “How on earth could you make money when you buy it?” they asked.
But that statement is accurate. You see, you might receive your sales proceeds when you sell your home in the future, but it’s how well you purchased your home now that will determine your proceeds in the future!
Our Real Estate Services are free of charge to the homebuyer. The seller of the property pays our fee and we represent your fiduciary interests in the entire transaction. Our Mortgage Services are at the best rates and fees in the area because of our one stop shopping concept. Call today at 817-690-9296 for more information.
