Should You Buy New Construction?
That new home smell is luring a lot of buyers back to new construction
I've been telling you for a while about changes in the market due to lack of inventory and increasing prices. There was a report out last week that home sales were down in May from the same month in 2011. I sort of chuckled to myself and thought, "Of course home sales are down over last year. there's much less inventory than there was in 2011."
Just as that statement formed in my mind I heard the news reporter make essentially the same statement. I was shocked to hear that. Finally, a member of the news media was reporting the complete story. I don't recall hearing that much truth reported since the housing bubble popped four years ago.
One of the byproducts of the lower inventory is the slight surge in new construction in parts of the metro area. We recently had the pleasure of showing new home construction, and I must admit, it was great walking into a property that wasn't in need of repair and where everything was shiny and new. The smell of fresh paint and carpeting, and my reflection staring back at me from the shine on the new wood floor, was certainly pleasant.
There is something to be said for purchasing a new home when you consider that the existing inventory, on average, needs work. With some properties, that's a serious understatement. The prices of new construction are in line with the current market as well. And, while that price might not be as negotiable as existing homes, you can usually get a lot of extras included at no additional cost, such as upgraded appliances and a year's worth of Homeowner's Association dues paid.
New construction usually includes a one year builder warranty, and if you negotiate it, you can usually get a multiple year extension. While it's true that you can negotiate who pays the buyer's lender's fees and other closing costs associated with the transaction, a lot of builders are willing to pay all of your closing costs.
If you’re in the market for a home, I wouldn't rule out the new construction options in your price range. You might find your best deal where you least expect it.
Do you have questions about your purchase choices? Feel free to send them to us at info@ idealrealestateprofessionals.com and we'll answer them in our "Ask the Broker"feature.
iDeal Real Estate Professionals, LLC is owned and operated by Brandon Bramlett and C. Mark Willix and is affiliated with Maximum One Realty Greater Atlanta. For personalized service visit us at www.idealrealestateprofessionals.com. You can also email us at firstname.lastname@example.org.