If you're thinking about buying a home, you have a lot of decisions ahead of you. Among these are the many decisions about what kind of home you should buy. One of the first choices you should make is whether to look at resale homes, new homes or both. Why should you make this choice so early in the game? Because it determines how you go house hunting. Working with a Realtor is the best way to sort through the multitude of resale homes on the market, negotiate with the seller and handle all the details during the escrow period. However, these services are unnecessary if you buy a new home from the builder. If your Realtor takes you to the new home sales office and you buy a home there, the Realtor will get a commission from the builder. If the builder can save that expense, there will be more room to negotiate with you on price and concessions. Some builders won't work with Realtors, in which case your Realtor won't even show you those homes. Of course you can do both at the same time. Have the Realtor show you resales while you look at model homes on your own.
The home, the property and the neighborhood will be different between a new home and a resale. Even the buying process if vastly different in the two scenarios. Which is right for you? Let's look at some of the key differences.
The process of buying a new home is very different than that of buying a home from a homeowner, especially in this market. Home builders are set up to make the process easy for buyers. They often work with lenders, title companies and others who all know what's going on. You walk into the sales office and they can tell you about interest rates, tax and mortgage payments and everything. Many builders offer incentives in the form of closing costs or upgrades to get their homes sold. Individual sellers, on the other hand, are human beings, not businesses. They may be offended that you want a carpet allowance to replace the purple carpet. They may not have the cash to help you pay your closing costs. Worse, they may be in a distressed situation, like a short sale, and everyone will have to wait for their lender 's approval of every little thing. Every penny matters to the seller, so if your inspection turns up a major problem that needs to be repaired, it might jeopardize the sale.
Property taxes can be higher in new neighborhoods if they're in a new city or a new area of a city. This is because the cost of building roads, parks and other community amenities is incorporated into the property taxes for the first several years. You can find out the tax rate in a new home community by asking the sales office. Resale homes usually state the tax rate in the MLS listing. Sometimes this higher property tax rate can be avoided if a new home community is built in an area with existing infrastructure.
The choice of buying a new home or a resale is only one of the many, sometimes overwhelming decisions facing you as you search for a new home. Think about the pros and cons of each and make the best decision for you and your family.
The home, the property and the neighborhood will be different between a new home and a resale. Even the buying process if vastly different in the two scenarios. Which is right for you? Let's look at some of the key differences.
The process of buying a new home is very different than that of buying a home from a homeowner, especially in this market. Home builders are set up to make the process easy for buyers. They often work with lenders, title companies and others who all know what's going on. You walk into the sales office and they can tell you about interest rates, tax and mortgage payments and everything. Many builders offer incentives in the form of closing costs or upgrades to get their homes sold. Individual sellers, on the other hand, are human beings, not businesses. They may be offended that you want a carpet allowance to replace the purple carpet. They may not have the cash to help you pay your closing costs. Worse, they may be in a distressed situation, like a short sale, and everyone will have to wait for their lender 's approval of every little thing. Every penny matters to the seller, so if your inspection turns up a major problem that needs to be repaired, it might jeopardize the sale.
Property taxes can be higher in new neighborhoods if they're in a new city or a new area of a city. This is because the cost of building roads, parks and other community amenities is incorporated into the property taxes for the first several years. You can find out the tax rate in a new home community by asking the sales office. Resale homes usually state the tax rate in the MLS listing. Sometimes this higher property tax rate can be avoided if a new home community is built in an area with existing infrastructure.
The choice of buying a new home or a resale is only one of the many, sometimes overwhelming decisions facing you as you search for a new home. Think about the pros and cons of each and make the best decision for you and your family.
About the Author:
If you live in Southern California or are moving there, be sure to look at these new homes in San Diego and new homes in Chula Vista . You'll be glad you did.
No comments:
Post a Comment