It's been predicted that by 2016, there will be a shortage of homes in the DC area...A SHORTAGE!!! Sure it's hard to imagine when there are so many homes in the area, so many to the point of getting crowded! But the truth is, it's possible! With the influx of transplants and the lack of inventory to match the high demand for housing, it's becoming more and more apparent that there's only one place left to turn. New construction. When pulling into the driveway of new development trailers, parking spaces are of limited availability, filled with license plates of distant states; from NC to Massachusetts, Minnesota to Oregon, relocation is reality. So where’s everyone going?
I recently surveyed new homeowners in Alexandria's Pulte Potomac Yard. Located less than 5 minutes from Reagan National Airport, this budding community of townhomes and townhome condos has plenty to offer it's new inhabitants. The short 15 minute commute into Downtown, easy access to shopping, walking/biking distance to The Pentagon and convenient transportation are cited as the favorite features of Potomac Yard homeowners, many of whom are transplants relocating to DC. Those interviewed shared that they also considered EYA's Old Town Commons, Stanley Martin's Rose Hill Reserve and renovated existing homes in Del Ray, all of Alexandria and Pulte's MetroWest in Vienna.
Considering new construction in the area? Here a few tips to help along the way:
- Consult a Realtor/Lender unassociated with the Builder - The sales reps and lenders work for the builder. They are hired to look out for the builder’s best interest. Similarly to hiring a defense attorney when going to court, you’ll want a Realtor and Lender who can consider first your best interest and can ensure that the process is win-win for all parties to the transaction, especially if you’re a relocation buyer.
- Incentives: Read the Fine Print - Recently, one of our clients was enticed by the 10k closing costs offered by a builder. Since they were savvy and used a Realtor, together we noticed closing costs estimated by outside lenders were comparable, but estimates of of builder’s lender was approximately $7k higher due to fees, which practically consumed the incentive. In essence, they saved more using their own lender. Many lenders understand the unique needs of relocation buyers and are extremely valuable when there is another property to sell or hold.
- Location - Builders release their lots in phases. You may find that you’re interested in a community, but the lot that you prefer is located in a phase set to be released in a time TBD. You’ll want to consider what’s most important to you, location, time frame, resale value
- Upgrades - Today, most builders include a basic granite, basic hardwood or carpet and more in properties. So you’ll get a nice house even with very few upgrades. Model homes normally include on average $40-60k in upgrades. Know your desired budget prior to going in to select your options and stick to it.
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