When buying a new home, you’ll discover that most homes on the market are resales. Yet one out of four homebuyers purchases a new home. Both new homes and resales offer advantages.
Let’s compare these points before you make a decision:
With NEW HOMES
- Offer innovative use of space and style
- Greater energy efficiency
- A choice of options and upgrades
- Everything is new, and modern
With 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 buying a home
As you can see, there are advantages to both. Most people consider both new and existing homes before they decide to purchase. Should you be thinking about buying a home, here are 10 points to consider before you visit your first model home.
Before you visit your first model home, sit down with your agent and do your homework. You’ll want to be prepared so that you can determine a comfortable price range for your new home.
Determine a Comfortable Price Range
If you own a home, you’ll first need to know the net proceeds from its sale in order to determine how much cash you’ll have to work with. Don’t simply estimate this but carefully calculate every possible selling cost. If you’re a first time buyer, you’ll need to first qualify your income.
Determine the size of your down payment, then work out a monthly debt load so you can determine a comfortable price range.
❷ Sellers’ Agents Versus Buyers’ Agents.
Here’s a good point to remember. The sales agent in the model home represents the builder, not you. They are known as sellers’ agents. As a buyer you can work with a buyers’ agent at no additional cost. It’s his/her business to best represent your needs by being knowledgeable about home construction, warranties, financing, differences in pricing, quality, even lot selection so that you get the best value for your money.
❸ A Builder For All Reasons.
Like all tradesmen, builders vary in their fields of expertise. For example there are builders who specialize in craftsmanship, others who are known for their innovative use of space, and those who offer below-market financing or customer attention during construction and after move-in. Determine your own specific needs or preferences then shop around for a builder that will best address your requirements.
❹ Get the Facts About Your Builder.
Before making a final decision, it is wise to check out the reputation and financial strength of the builder. Get “spec sheets” on home features covering everything from floor plans to energy efficiency, including lot availability and delivery of your home.
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