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Are You Getting In Over Your Head with that Giant Two Story Home?

By
Real Estate Agent with Coldwell Banker United, Realtors - Subsidiary of NRT LLC #0473270

One of the things I see buyers do over and over in our Killeen Fort Hood real estate market is that they just buy too much home for their budget.  

They go in and visit with sales representatives in those gorgeous model homes and suddenly seem to go into a hypnotic trance!  

Next thing you know, they have signed a contract to purchase a huge home that is way more house than they need (as well as way more utility bills than they can afford).  

It' so easy to do!   Those big box home builders know all the right things to say, the right things to show you, and the right financing terms to bring you to the closing table.

I don't mean to criticize them, as it is their job, and they are very good at it!

But is it the right home for you and your family?  

Do you REALLY need a home that big?

Before you sign on the dotted line as you sit inside that gorgeous model home, go out and do a bit of research.  It might make all the difference to your future lifestyle and budget!

Take a drive through older subdivisions that your target builder has developed and look at the condition of the homes after they are three to five years old.  

Ask yourself: are rooflines sagging? Is paint already fading or peeling off the siding?  Has the neighborhood already started to go down hill?  

A quick trip around an older neighborhood will tell you the story of the quality of the home you are considering purchasing.

If you don't like what you see in your  builder's old neighborhoods, and you realize your budget can't take a $400 electric bill, seek out a local builder who can offer you a quality home at a competitive price, and who will have a smaller home for you that will save you money on your utility bills!

Then, take a hard look at your budget. Utility costs are going up, and two story homes are a booger to heat and cool efficiently, especially the cooling part.

Local independent builders try to make their homes more unique than the big box homes, and their quality control is often much better than the huge volume builders.  These homes are often built to a higher energy efficiency standard (better quality control), and they offer warranties on their homes, too, just like the big builders.

Independent builders normally don't offer financing, but they will offer you all the amenities the volume builder would have given you.  

Local Killeen Fort Hood mortgage lenders, as well as the bigger national banks, offer competitive interest rates, so there's no need to feel pressured to use a big builder's lender to save a tiny fraction off your interest rate.

Buying a new construction home takes a different kind of specialized knowledge and different research than buying an existing home.   You have to ask the right questions, make sure you have the right builder, and know how to negotiate with the different builders in the area.   Don't get in over your head!

If you feel you need some help, just call, email, or text anytime!

 

Comments(5)

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Madison Barnes
Centex Homes - Killeen, TX
New Homes in Killeen

Mary Ann - great advice for prospective buyers!  At Trimmier Estates we love it when experienced real estate agents bring in their clients!  We don't want to oversell homes - but we do want to sell homes.  Having someone like you on board just makes the whole transaction easier.  We would  love to sell a home with you! 

Sep 14, 2012 03:54 AM
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Mary Ann, great information for home buyers thinking of buying a new construction home.  You're right - it's so easy to be impressed with all the upgrades the builders have put in - and, adds so much to the bottom line.  

Sep 15, 2012 03:21 AM
Mary Ann Daniell Realtor
Coldwell Banker United, Realtors - Subsidiary of NRT LLC - Killeen, TX
Delivering Successful Results Since 1999

Thank you so much for commenting!  As well as possibly spending too much, buyers are somewhat disappointed after they have contracted for their home based on the gorgeously decorated models.  When their plain white box of a house is not what they remembered seeing, a bit of buyer's remorse sets in.  They need to be sure to see an UNDECORATED home prior to writing their offer!

Sep 15, 2012 03:43 AM
Mona Gersky
MoonDancer Realty, Dillsboro,NC - Sylva, NC
GRI,IMSD-Taking the mystery out of real estate.

Mary Ann, in this economy everyone needs to thoroughly consider all aspects of home ownership before they take the plunge...especially those costs that are above and beyond the mortgage payment.

Jan 20, 2013 01:14 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!
Hello Mary Ann, great insight on this blog. An excellent advise to prospective buyers out to there before purchasing a huge home that is way more house than they need. You really are the best Fort Hood Texas Real Estate Specialist. 
Jul 05, 2013 01:16 AM