Homebuyers are searching again; despite the news reports we’ve been hearing… is it so buyers! I have received many calls from clients contemplating a new construction or resale home. In my St George Utah real estate market, buyers have an advantage with plenty to choose from, no matter what they want to buy. Builders have a record number of homes available and the St George’s MLS reflects an unusually high number of listings. High inventory coupled with lower interest rates is creating a great opportunity for the buyer.
New construction is always attractive. Owning a home that no one else has ever lived in, a blank canvas for creating a home that can be yours (and the fact that everything is brand new) is desirable to most buyers. However, something to consider is that the blank canvas may ultimately become an expensive masterpiece. With new construction, you need to consider costs for landscaping (grass, trees, etc.), window coverings, patio or patio covers, concrete work, and possibly block walls or fencing. This isn’t to say you should avoid new construction, it’s just the expenses that are occasionally overlooked. It is imperative to select a home with a reputable builder who is familiar with the region’s environmental issues. With all of the current lending issues, struggling homeowners also include homeBUILDERS facing financial problems. A home builder might overlook construction requirements in an attempt to make the home appear complete for listing. They are possibly risking a foreclosure on the house and rushing to sell the house could turn a profit. A home inspector is a necessity even for new construction. The home inspector may be able to uncover potential problems, however if you are dealing with a builder who will essentially disappear after closing, moving in may uncover serious or incomplete structural problems. That is why you should exercise your due diligence and select a home builder with a local reputation and credibility. A new construction home will have the luxury of implementing your own personal design and color selections within the home.
If it is considered a pre-owned home, typically the previous owner has already incurred the costs for window coverings, landscaping, and other items listed above. Having already made the changes and continuing to offer a lower sales price will save the buyer money and avoid the aggravation of doing so after closing. Consider the age of the home, as you may need to replace or upgrade carpeting, appliances, or other personal preferences that will add to the cost of the home. A pre-existing home within an established community can provide evidence of structural integrity within the neighborhood, as any problems may be obvious if the home has had time to settle. A home warranty from a reputable company is recommended. A home warranty can cover the owner for future problems such as electrical, plumbing, appliances, and even the garage door opener. The home warranty company will repair or replace covered appliances or home problems, for a small deductible. This will give the homeowner peace of mind for home repairs. This will be comparable to a new construction home warranty; however, please note that if the builder goes missing, the warranty may not be honored.
Always research any home, new or used. Never make a purchase without using the services of a qualified home inspector. Use a buyer’s agent, preferably a REALTOR, to represent you in any transaction. Also, remember the general rule… if it sounds too good to be true, it is.