The Advantages of Buying a New Home

The Advantages of Buying a New Home

For many home buyers, the choice between a resale home and a brand new home is easy: new homes offer a whole range of advantages that are simply not available in a resale property. Here are some of the reasons that have convinced others to buy new.

You know what you get. With a new home, there are no surprises when you move in. You know how the house was built and what went into it-what you can see and what is hidden behind the walls. You also know exactly how to operate and maintain your home's systems and equipment. If you have questions later, your builder will be there to give you a helpful and accurate answer.

You get what you want. Why live with other people's taste in interior decoration? Or spend the next few years redoing the previous owners' home improvements when you can get what you want from the very start. From layout to cabinets to carpeting, new home builders offer a wide selection of standard and up-grade options. You can pick and choose what suits your own lifestyle, personality and budget.

High-quality construction. The technology of home building has improved tremendously over the past few decades and new homes are built better than ever before. They are solidly constructed and well designed for today's lifestyles. They are highly energy efficient, with excellent indoor air quality. From heating systems to roofing shingles and windows, today's building products work better, last longer and often look better. The result is a brand new home that is far more comfortable and healthier, easier to maintain and more enjoyable to live in.

You know the builder. In the end, the quality of your home depends on the quality of your builder. When you buy a new home, you also buy the company's reputation in the community, its track record with past clients and its commitment to customers. That adds up to extra confidence and reassurance for you.

Well-designed communities. New developments are designed to foster a spirit of neighbourliness by carefully balancing private and public areas. Increasingly, verandahs and porches present an open and welcoming facade towards the street, while garages are located at the side or back of homes. Walkways and bikepaths meander through developments, and playgrounds and ballparks keep youngsters safely occupied. "Neo-classical" developments are now appearing that reflect villages of bygone days, with homes close to the sidewalk, white picket fencing throughout, a "commons" area-some with a bandstand or clock tower-and village stores to serve the community. These developments are attracting a lot of interest from both builders and consumers.

Warranty. Resale homes simply do not come with a comprehensive warranty. If something goes wrong, you have do deal with it, there and then, no matter what it costs. Buying a new home, on the other hand, offers peace of mind. Professional builders stand behind their work with an after-sales service program and a guaranteed third-party warranty. Your builder will explain how this warranty works so you can be sure you are getting the coverage that you want. Ask to see a copy of the warranty document, before you sign a contract.

You know what your housing costs will be. This allows you to budget properly and with confidence-great news for first-time home buyers. With today's low interest rates and competitive housing prices, home ownership need not cost any more than what you spend on rent.

When you buy new from a professional builder, you are in control. You know what you get, and you will get what you want. You also know what itjavascript:void(0) will cost, today and in the future.

Contact New Home Specialist Eric Kistner at 423-218-2008 to answer all of your home buying questions.

8 Tips for Finding Your New Home

8 Tips for Finding Your New Home

A solid game plan can help you narrow your homebuying search to find the best home for you.

1. Know thyself. Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors? Where have you searched for new homes in Kingsport? Have you been to the Edinburgh?

2. Research before you look. List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order. Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline. Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines. A new home in Edinburgh, Kingsport, can be constructed in 120 days.

5. Think long term. Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR® Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic. It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit. It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

No Excuse Not to Buy a Home Now

Could it be that some people waited too long to get a good deal on a home? Birmingham, Alabama REALTOR® Charita Cadenhead says ‘yes’ and shares her reasons why in a recent post.

“Potential homebuyers [have] chose[n] the absolute worst time to stall on buying a home. Interest rates are at an all time low, foreclosures are rampant, presenting an endless possibility of getting more house for their money, and more choices than they’ll ever have. And yet, they waited and waited and continue to wait. What they have done is ‘waited’ themselves out of an opportunity.

Now on the seller side (and we’re talking about traditonal, non-foreclosure sellers), a small window of opportunity has opened the door for owners of non-foreclosure properties to capitalize on the current processing freeze on foreclosure properties. Current sellers have been complaining about having to compete with foreclosures in their neighborhoods. Now that banks such as Bank of America have put a freeze on foreclosures (listed, processing and pending sales, etc.), a boatload of the competition has suddenly vanished.

That being said, what excuses do home sellers have now to wait?

• They have less competition in the market place
• More negotiating power in the interim
• The attention of more buyers who are now intimidated by foreclosures (they’re thinking that foreclosures may not be such a great deal after all)

While sellers may not get maximum dollar, if they play their cards right, they can certainly get more than they thought. This current real estate market is a market of opportunity and sometimes there’s only a small window of opportunity. Sellers can be like buyers have been and ‘wait’ themselves out of a golden opportunity. Or they can ‘get off the pot’, as they say, and take advantage of the best opportunity in the past two years.

Any seller that has been contemplating the sale of their home would be wise to jump not only at this window of opportunity, but through it. Sellers should learn a valuable lessons from the many potential buyers who missed their window of opportunity. Just for once in their lives, they need to take the leap of faith and be an opportunist.”

Click here to read more blog posts by Charita Cadenhead.

Follow the Edinburgh on Twitter... http://twitter.com/#!/TheEdinburgh

Find us on Facebook at http://www.facebook.com/group.php?gid=60203712007

If you are looking to buy are sell a house, please don't hesitate to give us a ring at 423-218-2008

Should I Buy a New Home or an Old One?

Advantages of Buying a New Home versus Older One

Posted in: Home Builders, Homes for SaleTags: Easy Maintenance, green features, new homes, New vs Old, Older Homes, Safety of Newer Homes

No matter what the current economic situation is, buying a new home will always have distinct advantages over purchasing an older home. From being able to customize your floor plan and features to more updated technology and appliances, there are a number of reasons you should consider purchasing a newly built home over a pre-owned home for you and your family.

Everything is New
One of the most obvious advantages to purchasing a new home vs an older home is the fact that everything in your home will be brand new. When purchasing a pre-owned home, the carpet, fixtures, walls, appliances etc… have been used by at least one family before you. Any stains, chips or holes are yours to keep and will remain for the duration of your lease. Purchasing a new home ensures that everything will be clean and unused when you move-in.

Customization
When purchasing a new home, you are given the opportunity to customize certain aspects of your home; the level of customization varies from builder to builder. Cabinets, flooring, bonus rooms and energy efficient features are just some of the many amenities you get to pick out when building your home.

Green Features
Many new homes today are built with your comfort and the environment in mind. These homes often are constructed with green materials and are designed to include other environmentally friendly amenities as well, such as solar panels, tankless water heaters, better insulation and indoor air filtration systems. These features are both kind to the environment and to your wallet, as they save you money each month on utilities. Ussually any pre-owned home you purchase will not have these added benefit of green features.

Safety
Some older homes were built with hazardous materials, such as asbestos and lead-based paint. For families moving into an older home, these dangerous and outdated building methods can seriously threaten the health and safety of you and your family. In addition, overtime, mold may have developed in a home and can greatly affect the health of you and your family. In choosing to buy a new home, you will be moving into a house that is not only free of these hazards, but it is also up to date on all plumbing and wiring regulations, ensuring a safer environment for your family.

Easy Maintenance
Newer homes are built using durable and lasting materials, which translate into to less upkeep and maintenance. In an older home, you may have to deal with worn out appliances, run-down materials, wiring and plumbing that may be in constant need of repair, or any number of other issues. As a new home owner, you’ll run into fewer issues and if you do, you can call your home builder’s customer service team for quick resolution. In most cases, you are protected by a builder warranty and manufacturer warranties on materials and products.

re-posted with Permission

What Borrowers Should Know about FHA Loans

What Borrowers Should Know about FHA Loans

1. FHA loans are not only for lower-income borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans, but borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes.

2. FHA loans are not only for first-time buyers. Many people believe FHA loans are available only to first-time home buyers, but this is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option.

3. FHA loans are not just small loans; in fact, loan amounts can be as high as almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county, though. Later this summer, condo buyers interested in FHA loans can visit www.checkfhaapproval.com to instantly identify FHA-approved condo associations and review maximum loan amounts for a given location.

4. FHA loans are not affiliated with the Section 8 housing program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers.

5. FHA loans are often more affordable than conventional loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5%.

6. FHA-approved condo developments are more desirable to buyers. With 87% of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.

Due to the general challenges with today’s lenders extending credit with respect to conventional loans, many borrowers may find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment.

Homeowners associations (HOAs) should note that although FHA-insured mortgages might be easier to obtain, they are not “risky” loans, due in large part to the strict “full documentation” requirements placed on borrowers. Individual buyers or sellers can initiate the approval process or current owners can encourage their HOA to apply.

7. FHA loans are assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.

Both Edinburgh and Edinburgh both fully qualify under FHA guidelines. Call Eric Kistner with Keller Williams/The Edinburgh Group to learn about all of your financing options. 423-218-2008 edinburghhomes@gmail.com