But with a new construction home you get:
• Brand new everything!
• Finishes you want (fixtures, paint colors, etc.)
• Design that fits your lifestyle
• Maximum energy efficiency
• Everything built to current code
• An extended warranty (equals peace of mind)
There is much uncertainty when you search exclusively for resale homes. Baseline price is unknown- meaning what price will the seller take? What will the inspector find? What will the seller fix, if anything? What deferred maintenance issues may surface after you move in? How much will you need to put into it (renovations) so it feels like yours?
When you shop for a new construction home be aware that the friendly person in the model home works for and represents the builder. You are on your own. Why not bring a Realtor to represent you? A Realtor is your advocate for making sure you stay close to budget, another set of eyes during construction and walk-through, and can make sure all aspects of the sales contract have been met.
It’s important to bring your Realtor to your first visit to the model home of any community. That way the salesperson knows you are a qualified prospect. I bet you are thinking it will end up costing you more to buy a house because you brought your Realtor with you. Not true! According to The National Association of Realtors, Realtors sell around 65% of new homes. I’ve talked to some local salespeople representing large builders and they say that number is closer to 80% or even 90%. Builders realize that Realtors are their largest source for qualified buyers. They welcome them and don’t charge you more for being represented. The cost of paying a buyer’s agent a commission to represent you is built into their marketing fee and not the cost of the home. Builders want buyers. Realtors are their number one source. It’s a win-win for all parties.
When shopping for a new home you will get the best deals on an “inventory” or “ready-to-move-in” home versus a custom home starting from bare ground. Builders offer the best incentives on these homes like paying a certain amount of your closing costs, throwing in free blinds, refrigerator, or even a patio and firepit. If you want to build from the ground-up then go for it. Just be careful as you can easily blow through the budget due to upgrades. Your Realtor can help you stay on track. Your builder makes a hefty profit on upgrades. But you don’t want to become the most expensive property in the community. This can hurt you down the road should you decide to sell.
It may take a while for your lawn and trees to become established and for the construction dust to settle in your new home neighborhood. But from a value perspective, I think you’ll find it’s worth it.
Matt Morano is a Realtor at Lake Realty in Cornelius. He is also a Certified New Home Co-Broker. His email is [email protected]
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Visit his page at https://www.matt.lakerealty.com