Owning a new home and being able to select all the features that best suits your family’s needs is something many home buyers desire. What could be easier than moving into a home that is set up exactly like you want it that requires little to no extra work to get the property up to your standards?
There are a few reasons why every buyer does not purchase a new home.
1. Many home buyers are intimidated by the process of selecting every little detail in their home.
– This really should not deter you from considering a new home as many spec homes are already built and require little to no additional decision making. However building a home is not for everybody. It can be one of the most satisfying experience you will ever have or possibly one of the most stressful and it is really up to dynamic of your relationship with anyone else purchasing the home with you meaning if you argue about everything already, maybe a spec home is a better route.
2. Cost: How do new homes compare to resales?
– This can vary from different new home builders, but typically new homes cost a little more than resales or foreclosures in Chattanooga TN. The question at any given time is how much difference? A higher price and a better value can and often do coincide. When considering either resales or foreclosures you must consider the cost of any improvements or changes that you intend to make as well as maintenance issues that may not be as apparent such as a new A/C, replacing the roof, or appliances. Rest assured a home warranty can be worth its weight in gold.
3. Selecting the right builder.
– Choosing an inferior builder or not getting the best bang for your buck is something that all new home buyers are afraid of. It really takes a trained eye and knowledge of the construction industry to know what your looking for as you probably will not find a builder or builder’s agent that would tell you that there is a better product out there, they want you to buy one of their homes. Unless you are a very experienced and savvy investor, it is not recommended to go at this without the help of an experienced agent. Many if not all home builders will try to sell you on the features, options, and price of their homes, but without having an accurate knowledge of how much structural and cosmetic options truly effect the value it is difficult to make a rational decision. Think about it almost all builders try to save money somewhere or make up the difference in by overcharging for a desirable option.
4. Should you use a buyer’s agent?
– The choice is entirely up to you, but you will not get a discounted price for not having one for a number of reasons. The two most important reasons are appraisals and the Realtor community. If a builder gives a discount on a home purchased without a buyer’s agent they could negatively effect the value of future purchases meaning if the next buyer wants to purchase the same home with a buyer’s agent the appraised value might not support the difference in pricing. So the builder would net less which they are not willing to risk. Likewise for most builders, buyer’s agents account for 65-85% of their business so risking getting a bad name in the Realtor community is not worth it to make 1 additional sale. If you would like to work with an experienced agent, that has worked for some of the largest home builders in the county and knows their tricks, please contact us for a consultation.