When you are considering purchasing a home, there are a lot of choices to make. One of the first things you should think about is whether you're going to consider new homes, resale homes or both. It may seem like that's a decision that can wait until later down the road, but you should consider it early because it will make a difference in how you look at houses. If you're looking for a resale, you should work with a Realtor. On the other hand, if you decide to buy a new home from a builder, you should go to the sale office without a Realtor. You'll have more negotiating room if the builder doesn't have to pay a commission to your Realtor. Some builders won't work with Realtors, in which case your Realtor won't even show you those homes. Of course you can do both at the same time. Have the Realtor show you resales while you look at model homes on your own.
The home, the property and the neighborhood will be different between a new home and a resale. Even the buying process if vastly different in the two scenarios. Which way should you go? Let's look at some of the key differences.
The process of buying a new home is very different than that of buying a home from a homeowner, especially in this market. Home builders are set up to make the process easy for buyers. They often work with lenders, title companies and others who all know what's going on. You walk into the sales office and they can tell you about interest rates, tax and mortgage payments and everything. Many builders offer incentives in the form of closing costs or upgrades to get their homes sold. Individual sellers, on the other hand, are human beings, not businesses. They may be offended that you want a carpet allowance to replace the purple carpet. They may not have the cash to help you pay your closing costs. Worse, they may be in a distressed situation, like a short sale, and everyone will have to wait for their lender 's approval of every little thing. Every penny matters to the seller, so if your inspection turns up a major problem that needs to be repaired, it might jeopardize the sale.
New homes have all brand new components. New dishwashers, air conditioners, plumbing, roofs, etc. It will be quite a while before any of these things needs repair or replacement. Also, new homes are build to higher, newer building codes. This includes energy efficient features. New homes have the latest energy star appliances and improved insulation. These features can save you a lot of money on electricity and water. Older homes are more expensive to upgrade, especially features like insulation, which would require removing and replacing drywall. Many new homes now offer solar panels as an upgrade. Not only will this save on the electric bill, but it can be financed in the mortgage.
Whichever road you choose, think carefully about what things you need in a new home as well as what features would be nice to have. Think about what the home and the neighborhood will be like in 10 or 20 years. Even if you don't plan to be there that long, this type of information will impact your resale value.
The home, the property and the neighborhood will be different between a new home and a resale. Even the buying process if vastly different in the two scenarios. Which way should you go? Let's look at some of the key differences.
The process of buying a new home is very different than that of buying a home from a homeowner, especially in this market. Home builders are set up to make the process easy for buyers. They often work with lenders, title companies and others who all know what's going on. You walk into the sales office and they can tell you about interest rates, tax and mortgage payments and everything. Many builders offer incentives in the form of closing costs or upgrades to get their homes sold. Individual sellers, on the other hand, are human beings, not businesses. They may be offended that you want a carpet allowance to replace the purple carpet. They may not have the cash to help you pay your closing costs. Worse, they may be in a distressed situation, like a short sale, and everyone will have to wait for their lender 's approval of every little thing. Every penny matters to the seller, so if your inspection turns up a major problem that needs to be repaired, it might jeopardize the sale.
New homes have all brand new components. New dishwashers, air conditioners, plumbing, roofs, etc. It will be quite a while before any of these things needs repair or replacement. Also, new homes are build to higher, newer building codes. This includes energy efficient features. New homes have the latest energy star appliances and improved insulation. These features can save you a lot of money on electricity and water. Older homes are more expensive to upgrade, especially features like insulation, which would require removing and replacing drywall. Many new homes now offer solar panels as an upgrade. Not only will this save on the electric bill, but it can be financed in the mortgage.
Whichever road you choose, think carefully about what things you need in a new home as well as what features would be nice to have. Think about what the home and the neighborhood will be like in 10 or 20 years. Even if you don't plan to be there that long, this type of information will impact your resale value.
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If you live in Southern California or are moving there, be sure to look at these new homes in San Diego and new homes in Chula Vista . You'll be glad you did.
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