The best buy has to be new construction, right? After all, the builder is probably offering free upgrades and help with financing. According to media reports, builders have unsold inventory and will do whatever it takes to get a sale. MAYBE! In some parts of the country, that may well be true, but not all. In Coastal Delaware, for example, that inventory sold in 2008 and builders are no longer building to inventory.
Sellers of existing homes are more motivated, aren't they? MAYBE! Not every seller is on the verge of foreclosure. Sellers will have to consider any offer. Not necessarily, but most will at least counter any reasonable offer. Does it matter how long the home has been on the market? PERHAPS! But, in this market, every home has been on the market too long.
When you have a choice of both Resale Homes and New Construction, here are some suggestions to help you make the best choice -
- Determine your price range. If you will be financing the purchase, discuss your options with your agent and mortgage professional first. Not only will this save time, it will help you focus your search and prepare your agent to negotiate on your behalf.
- Location is key! Always pick the best location you can afford. In some communities, they built in the best locations first; in others, they saved the best for last.
- Remember, you are buying a home in which to live. Look at all homes in your target price range and pick the one that feels like home.
- Always think about selling when you buy. Don't skimp on the most popular structural upgrades, especially those that cannot easily be added later.
- In a new home community, resale homes can be "better than new". Builder warranties usually provide for a "one-year punch list". Most problems show up in the first year and every new home will have some problems that need repairs. That's one reason why most builders tell homeowners not to paint with fashion colors until that first year walk-through is complete and any repairs have been made.
- Consider your time frame. If you have a home to sell, buying a "to-be-built home" affords you more time to find a buyer. It is very difficult to find anyone willing to accept a contingent contract any longer. Builders have been burned by too many cancelled contracts.
Don't limit your selection of homes before you see what's available. You just might find your perfect home is already designed, built and ready for you to move in. The better buy is the one that's right for you.
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