Home buyers are looking again; despite the news reports we’ve been hearing… is it so buyers! I have received many calls from clients who are contemplating a new construction or resale home. In my St George Utah real estate market, buyers are at 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 MLS reflects an unusually high number of listings. High inventory coupled with lower interest rates is creating a huge opportunity for the buyer.
New construction is always attractive. Owning a home that no one else has ever lived in, a blank canvas to create a home that can be yours (and the fact that everything is brand new) is desirable to most buyers. However, one thing to consider is that the blank canvas may ultimately become an expensive masterpiece. With new construction, you need to consider the costs of landscaping (lawn, trees, etc.), window coverings, patios or patio covers, concrete work, and possibly block walls or fences. 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 from a reputable builder who is familiar with the environmental issues of the region. With all the lending problems currently present, homeowners in trouble also include homeBUILDERS facing financial problems. A home builder might bypass construction requirements in an attempt to make the home appear complete for sale. They are possibly risking foreclosure on the house and rushing to sell the house could make 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. That’s why you should exercise your due diligence and select a home builder with a local reputation and credibility. A newly built home will have the luxury of implementing your own personal design and color selections within the home.
If a resale home is being considered, the costs of window coverings, landscaping, and other items listed above have usually already been incurred by the previous owner. Having already made the changes and continuing to offer a lower selling price will allow the buyer to save money and avoid the aggravation of doing so after closing. Keep in mind the age of the house, as you may need to replace or update carpeting, appliances, or other personal preferences that will increase the cost of the house. A pre-existing house within an established community can provide evidence of structural integrity within the neighborhood, as any problems may be obvious if the house has had time to settle. 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 homeowner peace of mind for home repairs. This will be comparable to a new construction home warranty; however, please note that if the builder disappears, the warranty may be void.
Always investigate any house, new or used. Never make a purchase without using the services of a qualified home inspector. Use a buyers 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.