We all love model homes and the smell of new home just like a new car purchase. However, before you decide whether to buy a new construction home in Fairfax or Loudoun county of Northern Virginia over a resale home add up these cost to your home purchase price:
1. Grantor's Taxes: There are many home builders in Northern Virginia who requires the purchaser to pay for their share of taxes at closing. Grantee taxes are paid by the buyers. Seller irrespective of resale or new home are responsible for Grantor's tax in Virginia. Some builders will offer closing cost assistance which will partially offset the cost of taxes but reduced the NET credit you will receive as an incentive.
2. Higher Closing cost: When you purchase a new construction with a builder preferred lender and title company your closing cost will be significantly higher compared to a resale home purchase with a bank/direct lender and/or local title company. Compare the difference on the same home price purchase to understand the cost you will be incurring while purchasing a new construction home in Virginia.
3. Exterior construction: Builders offer decks and patio option at an insane cost. The reason behind is builders are not in the business to built decks, patios, outdoor living space they are in the business to sell a home. If your new home in Fairfax or Loudoun county does not come with an exterior space do add that cost when purchasing a new construction home. Eventually, you will need to build an outdoor living space.
4. Interior finishing: Once again every dollar and dime adds up once you buy a home. On a new construction home, add the cost of adding blinds or window treatment, washer dryer, garage openers, lighting and other updates you will add to personalize your home. If you are in a process of selecting your design center options the cost of adding bells and whistles to your new home should be considered and compared to resale homes in the area.
5. Taxes: Since the new construction home has not been assessed by the county you will receive an assessment towards the end of the year. Most of the counties in the Northern Virginia area have been assessing the tax value of the home close to the new home purchase price. Compare what a similar home tax value is on a resale home compared to your new construction. Remember county needs tax revenue so your home assessed value may not fluctuate on the lower end compared to an older resale home that was assessed at a lower price.
If you are in dilemma of whether to purchase a resale or a new construction home in Northern Virginia area of Fairfax & Loudoun county speak with your local real estate agent to help you make a decision.