New build house or resale house?
Home Buyers Are Looking Again; despite the news reports we’ve been hearing … are buyers! I have received many calls from clients who are contemplating a new construction or a resale home. In my St George Utah real estate market, buyers have a head start with a lot to choose from, no matter what they want to buy. Builders have a record number of homes available and the St George MLS reflects an unusually high number of listings. The high inventory coupled with lower interest rates becomes a great opportunity for the buyer.
New construction is always attractive. For 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 for 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 shades, patios or patio covers, concrete work, and possibly block walls or fences. This is not to say that you should avoid new construction, it is only the expenses that are occasionally overlooked. It is imperative to select a home with a reputable builder who is familiar with the environmental issues within the region. With all the lending problems currently present, struggling homeowners also include homebuilders facing financial concerns. A home builder could possibly circumvent construction requirements in an attempt to make the home appear complete in order to put it up for sale. They may be risking foreclosure on the home, and rushing to sell the home could lead to a profit. A home inspector is a must even for new construction. The home inspector may be able to uncover potential problems, however if you are dealing with a builder that will essentially disappear after closing, moving out may uncover serious or incomplete structural issues. This is why you should exercise your due diligence and select a reputable and credible local home builder. A newly built home will have the luxury of implementing your own personal design and color selections within the home.
If considering a second-hand home, the former owner has usually already incurred the costs for the curtains, landscaping, and other items mentioned above. Having already made the changes and continuing to offer a lower sale price will allow the buyer to save money and avoid the aggravation of doing so after closing. Take into account the age of the home, as you may need to replace or update carpets, 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 down. A home warranty from a reputable company is recommended. A home warranty can cover the homeowner for future problems like 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 owner peace of mind for home repairs. This will be comparable to the warranty on a newly built home; however, keep in mind that if the builder disappears, it may be impossible for your warranty to 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 golden rule … if it sounds too good to be true, it is.