Before you make that offer on a home that you aren't that excited about, ask yourself- "Is this the RIGHT HOME for my family?" A few weeks ago, we had a customer walk into our Sales Center, and he said he was just in the area to look at a resale in the area. He stopped in because he wanted to see what new homes were available and what they had to offer. (His agent didn't suggest he look at new homes) After discussing his wants and needs, we looked at three homes and the next day he returned to write a contract on one of our new homes that was priced $150,000 more than the short sale listing (same size home, but different features). I'm sharing this true story because we've seen this happen quite a bit in the past year, much to the surprise of many in the business. Our hope is that real estate agents will consider why buyers should consider the right home and the right community and not just focus totally on what they perceive to be the right price.
We've seen a resurgence in new home sales activity in several of our new home communities in the Hamtpon Roads area of Virginia, and I've come up with 5 REASONS WHY BUYERS SHOULD CONSIDER A BRAND NEW HOME.
1. Are you trying to achieve just the RIGHT price? Or would you prefer to have both? (The RIGHT home AND the RIGHT price? Maybe even pay attention at the RIGHT neighborhood, while you're at it.) Many of today's new homes have advantages over some of the competitive homes on the market today, and because they offer more quality and a superior floor plan, can help make the new home "a better deal". In some cases, the short sale/foreclosure/resale home may be the best momentary opportunity for the homebuyer, and everything is perfect for them...that's great, but it's always good to compare and investigate all options before they do make the offer.
I realize that many buyer agents are looking for the "best deal" for their clients because their buyers initially tell them, "I want the best price for a house, I don't want to pay too much in today's economy". Fair enough. We understand that there are a few momentary opportunities out there and many potential buyers see them as the best deal on the surface. But is it really the best home for their family for their long term happiness? What is the right decision? Is it the right price but the wrong decision for your family? The lowest price home may not be always mean the right home.
2. The Brand New Home may actually be a better floor plan and design for your family. New homes at The Riverfront at Harbour View, Founders Pointe, Graystone at Eagle Harbor, and Liberty Ridge all offer more of what today's buyers are looking for. (Hampton Roads area of Virginia)
Custom builders are paying more attention to interior design, energy efficiency, quality appointments, and how people want to live today. Backyard creations and covered back porches are found in many of the new homes because people are looking for outside living space. Some homesites offer a view of the water, golf course, or a view over their privately wooded backyard. Many of today's floor plans showcase bigger Kitchens with floating center islands which connect to the Grand Room (Family Room/Great Room). More attention is being paid to the cabinet layout, the energy star appliance package, and focusing on a return to the old mud room, now referred to as a "drop zone"- which is commonly located off the Kitchen/Laundry on the way to the garage.
3. Newer homes are built to a higher standard in our region, starting about 2009. More energy efficient homes, better foundations & framing, and better overall engineering. Some of the building construction changes/improvements that our builders are now including in their new homes are highlighted below. (Many localities did not start requiring these changes until 2009)
The 2006 International Residential Code changes implemented as of May 1, 2009 *
- Pier and curtain walls not allowed anymore in the prescriptive code. Solid perimeter foundations required.
- Continuous interior footers required in lieu of footings for individual piers.
- Some cities are requiring an engineered stamp on the footer under the steel beam point load. This creates a possible increase in concrete and a charge from the engineering firm.
- Brace wall provisions in the 2006 IRC have been rewritten and are being enforced. The Brace wall provisions require a Brace wall plan on the plans. The area most affected are the garage wing walls on most floor plans. Narrow walls with big openings next to them are not allowed in some cases. A proprietary system may be required on some floor plans.
- Two story Family rooms and two story Foyers are now being looked at very closely. New requirements may be enforced for the large window walls that are common on most plans. LSL studs may soon be required on each side of a window opening.
- Insulation requirements have increased under the new code in the ceiling and under slabs. We are required to use R38 in the ceilings and R10 at the perimeter of concrete slab foundations.
- Window efficiency requirements have increased to .40 U value minimum. This has forced suppliers to provide Low-E window units in order to meet code. The old standard insulated glass window unites could only reach a .45 U value. *Information obtained from Sadler Building Corporation
4. In many cases, the new homes include more quality appointments than the competitive homes on the market (plus carry new home warranties that older homes won't have) and often times include more features than the new homes that were built four or five years ago. Builders are able to get more from their trades and subcontractors, and they're passing the value onto the consumer. One of our builders' cabinet maker admits they're throwing in extra little things in the kitchens that help make a difference, because they want to impress the homebuyer too. Many landscapers are including more shrubbery/plant beds. Carpenters are adding small touches like southern bead board in porch ceilings or below chair railing where they didn't before. Some of the backyard kitchens, stamped concrete patios, and fireplaces help make the setting a place people want to be. Everyone is out to give the customer something extra, and we're seeing happier homebuyers.
5. Go visit your new home communities BEFORE you make that offer...don't be afraid to tell your agent that you'd really like to investigate the neighborhood and the community amenities as much as you'd investigate a home on a resale home inspection. Too many times, we qualify buyers by asking them just the price range, the number of bedrooms & baths, square footage, etc. I've witnessed many instances where buyers, who recently bought a resale, came into our Information Centers after they bought somewhere else and say, "I had no idea that your community offered so much...our real estate agent didn't bring us here...we would've loved to have had a clubhouse and pool for our kids to grow up around"...or "the quality in your homes is much better than the resale we just bought four months ago". What's the big picture? (Make sure your agent brings you out to compare BEFORE you decide.)
Agents: How often do you know what they're really feeling? Do we listen well enough to discover what matters most to the buyer? Many times, buyers say one thing, but aren't ready to open up and share their true feelings and motivations. It's wise to include a new home community in your initial tour. You can rely on the site agent to help qualify their needs and wants. At our new home communities in the Hampton Roads area, we try to figure out the right match (home plan/homesite) for potential buyers first. If you're showing homes for sale in our price range, at least expose your buyer to all options before they lock in on what may not be the right home for them.
Right Home + Right Neighborhood + Fair Price = Happy Homeowner
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