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.
Showing posts with label new homes for sale. Show all posts
Showing posts with label new homes for sale. Show all posts
Wednesday, May 4, 2011
Tuesday, March 29, 2011
10 Reasons To Buy New
10 REASONS TO BUY NEW
One of the first decisions when looking for a home is whether to buy new or purchase an existing home. While there are some advantages to purchasing resale such as an established neighborhood or included upgrades, there are also many benefits of buying a new home including:
1. New Home Pricing
The price of a new home used to be more expensive than an existing one, with falling land costs, that is no longer true. Your new home is likely to need fewer repairs or replacements since everything is new. Even better, homes usually appreciate with time and when you buy a new home located in a desirable neighborhood, the value may increase even more and you likely will have a greater resale appeal if and when you sell.
2. Your Neighborhood Is Well Planned
Builders know that a key factor in selling homes is to build them in well-planned, desirable neighborhoods. This is accomplished by carefully selecting lots in locations with a quality reputation and desirable amenities for future residents including top-ranked educational facilities and best-in-class dining, shopping and recreation.
3. Up-To-Date Design
New and better ways of constructing homes are consistently being generated. Also, as consumer trends change, new construction can respond with floorplans to accommodate customer needs that some existing homes do not include such as great rooms (oversized family rooms), larger closets, media niches and larger state-of-the-art kitchens.
4. Warranties
A new home comes with something no older home can provide.... the builder's limited warranty. This is your assurance that you are getting what you paid for and that your builder stands behind their product. A warranty typically covers new appliances, carpets, mechanical equipment and overall construction of a new home for a period of time.
5. Energy Efficiency
New homes are more energy efficient because they are better insulated, have better windows and more efficient central heating and air conditioning systems.
6. Wired for State-of-the-Art Technology
With the abundance of home computers, home media centers, surround sound and other modern conveniences, new homes are being wired to accommodate state-of-the-art technology that wasn't available when many existing homes were built.
7. Healthy Living
New homes may offer health advantages. Asbestos is no longer used in shingles, floor tiles, ceilings or insulation. And most often, lead is no longer used in paint, and formaldehyde emissions have been virtually eliminated from plywood and particle board.
8. Low Maintenance
New homebuilders use the latest and greatest materials that technology can offer. The result? New homes are virtually maintenance free for many years.
9. Help Through the Process
To help make the new home buying process more manageable, builders provide customers with a team of trusted professionals to guide them through the process. This is especially helpful for first-time buyers.
10. A New Home Is All Yours
There is truly no place like home, and when you purchase new construction, you are able to create the setting you desire. The flooring, window coverings, appliances in the kitchen are all special touches that make your home distinct and special will be exactly what you decide.
If you have any questions or would like to tour a New Home Community in Kingsport, Johnson City, Boone's Creek or Gray, Tennessee call a new home specialist at 423-218-2008 or check out our website at edinburghcommunity.com
One of the first decisions when looking for a home is whether to buy new or purchase an existing home. While there are some advantages to purchasing resale such as an established neighborhood or included upgrades, there are also many benefits of buying a new home including:
1. New Home Pricing
The price of a new home used to be more expensive than an existing one, with falling land costs, that is no longer true. Your new home is likely to need fewer repairs or replacements since everything is new. Even better, homes usually appreciate with time and when you buy a new home located in a desirable neighborhood, the value may increase even more and you likely will have a greater resale appeal if and when you sell.
2. Your Neighborhood Is Well Planned
Builders know that a key factor in selling homes is to build them in well-planned, desirable neighborhoods. This is accomplished by carefully selecting lots in locations with a quality reputation and desirable amenities for future residents including top-ranked educational facilities and best-in-class dining, shopping and recreation.
3. Up-To-Date Design
New and better ways of constructing homes are consistently being generated. Also, as consumer trends change, new construction can respond with floorplans to accommodate customer needs that some existing homes do not include such as great rooms (oversized family rooms), larger closets, media niches and larger state-of-the-art kitchens.
4. Warranties
A new home comes with something no older home can provide.... the builder's limited warranty. This is your assurance that you are getting what you paid for and that your builder stands behind their product. A warranty typically covers new appliances, carpets, mechanical equipment and overall construction of a new home for a period of time.
5. Energy Efficiency
New homes are more energy efficient because they are better insulated, have better windows and more efficient central heating and air conditioning systems.
6. Wired for State-of-the-Art Technology
With the abundance of home computers, home media centers, surround sound and other modern conveniences, new homes are being wired to accommodate state-of-the-art technology that wasn't available when many existing homes were built.
7. Healthy Living
New homes may offer health advantages. Asbestos is no longer used in shingles, floor tiles, ceilings or insulation. And most often, lead is no longer used in paint, and formaldehyde emissions have been virtually eliminated from plywood and particle board.
8. Low Maintenance
New homebuilders use the latest and greatest materials that technology can offer. The result? New homes are virtually maintenance free for many years.
9. Help Through the Process
To help make the new home buying process more manageable, builders provide customers with a team of trusted professionals to guide them through the process. This is especially helpful for first-time buyers.
10. A New Home Is All Yours
There is truly no place like home, and when you purchase new construction, you are able to create the setting you desire. The flooring, window coverings, appliances in the kitchen are all special touches that make your home distinct and special will be exactly what you decide.
If you have any questions or would like to tour a New Home Community in Kingsport, Johnson City, Boone's Creek or Gray, Tennessee call a new home specialist at 423-218-2008 or check out our website at edinburghcommunity.com
Wednesday, February 23, 2011
Trading Homes Is Easier Than You Think (Part 2 of 3)
One of the largest hurdles families face in the search for a new home is what to do about the home they are currently living in. We hope this three part series helps illustrate how trading a home can benefit a family.
The first of this series discussed the most common hurdles families face when seeking to move to a new home. This second part discusses how a new home builder offering a Trade In Your Home program can help overcome these challenges. The third part will discuss how a trade program works.
What Is Trading
Trading your home is when you trade (sell) your current home to a builder and then buy one of their new homes. This is similar to trading in an automobile, however it is done on two separate contracts instead of one document.
Both transactions will close at the same time at the same title company. Your equity in your old home can be used towards your down payment on your new home.
How Much Is My House Worth
The value of your current home will be determined the same way a real estate agent would determine what price to list your home for sale.
A builder will typically order a Comparative Market Analysis, inspect your home and order a real estate inspection. This will give him or her the information they require to determine a value for your house.
Once the builder is able to determine what improvements are required (paint, carpet, roof, etc..) if any and the price the home will sell a trade value will be determined for the home.
Our company offers a “net price” meaning that we deduct out real estate commissions, repairs, marketing fees and negotiation factors. Here is a case study on a recent trade offer.
Here is what this family would most likely net out if they listed with a real estate company;
Realtor Lists & Sells Home
List price $260,000
Negotiations (3%) & Commission (6%) ($22,932)
Home Warranty & Title Policy ($2,597)
Carpet, Paint & Repairs ($13,000)
Landscaping upkeep and grooming ($1,500)
Total Adjustments off of list prices $40,029
Projected Homeowner Net Proceeds $219,971
Here is what a family would most likely net if they traded in their home;
Builder Offered Trade Value
Retail value of home $260,000
Less Carpet & Paint (major items) ($11,000)
Less Seller Adjustments – 5% ($13,000)
Total Adjustments off of list prices $37,000
Net Value For Trade Credit $236,000
In this example the home owners are most likely going to receive a bit more net value for their home than trying to sell it themselves. Please keep in mind that every trade is different and individual circumstances will vary.
Repairs
All homes require repairs and updating to be ready for sale. When a builder takes a home in trade he has developed a plan to address those items and will be able have his crews handle the repairs once you have moved out of the home.
By conducting the repairs with his crews and in a vacant home, he is often able to save on costs versus what they would cost you to have the same work done. Builders are also less inclined to be worried about small cosmetic items which may make a typical home buyer nervous.
Benefits
The builder will often take your home in its current condition without requiring you to replace the carpet, do paint touch up or fix sheetrock damage.
You can avoid the trouble of negotiating a sale or dealing with odd buyer requests. You will not have to be ready to jump at a moment’s notice when a Realtor wants to show your home of have any pressure to keep the home in show ready condition all the time.
However, the biggest benefit is that you are able to move when you are ready into a home you want in a timely manner with minimal disruption to your life.
What Can You Trade
The best trades are when the property you are trading in is worth less than one half the price of the property you are seeking to purchase.
Most commonly a family will trade in their existing home. However, sometimes a family will offer a vacant lot or an investment property.
Thank You
During down markets, trading is a great means of moving without taking the risks associated with attempting to sell your existing home. In a hot market, trading may offer a great means of being able to move on the house you want before someone else beats you to it.
Either way, if you are considering a move, look at all your options including trading. The last part of this series will detail the steps of how a trade will work. To see the entire series visit ourblog.
If you have a question on how to a trade program works, please feel free to email your questions to our offices. The Edinburgh Group is a full service building firm serving the Upper East Tennessee. We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.
Please feel free to leave your comments, drop us an email at edinburghhomes@gmail.com or call our office at 423-366-0431.
If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance. If you know a family or client who may be in need of our services, we welcome and honor your referrals.
One of the largest hurdles families face in the search for a new home is what to do about the home they are currently living in. We hope this three part series helps illustrate how trading a home can benefit a family.
The first of this series discussed the most common hurdles families face when seeking to move to a new home. This second part discusses how a new home builder offering a Trade In Your Home program can help overcome these challenges. The third part will discuss how a trade program works.
What Is Trading
Trading your home is when you trade (sell) your current home to a builder and then buy one of their new homes. This is similar to trading in an automobile, however it is done on two separate contracts instead of one document.
Both transactions will close at the same time at the same title company. Your equity in your old home can be used towards your down payment on your new home.
How Much Is My House Worth
The value of your current home will be determined the same way a real estate agent would determine what price to list your home for sale.
A builder will typically order a Comparative Market Analysis, inspect your home and order a real estate inspection. This will give him or her the information they require to determine a value for your house.
Once the builder is able to determine what improvements are required (paint, carpet, roof, etc..) if any and the price the home will sell a trade value will be determined for the home.
Our company offers a “net price” meaning that we deduct out real estate commissions, repairs, marketing fees and negotiation factors. Here is a case study on a recent trade offer.
Here is what this family would most likely net out if they listed with a real estate company;
Realtor Lists & Sells Home
List price $260,000
Negotiations (3%) & Commission (6%) ($22,932)
Home Warranty & Title Policy ($2,597)
Carpet, Paint & Repairs ($13,000)
Landscaping upkeep and grooming ($1,500)
Total Adjustments off of list prices $40,029
Projected Homeowner Net Proceeds $219,971
Here is what a family would most likely net if they traded in their home;
Builder Offered Trade Value
Retail value of home $260,000
Less Carpet & Paint (major items) ($11,000)
Less Seller Adjustments – 5% ($13,000)
Total Adjustments off of list prices $37,000
Net Value For Trade Credit $236,000
In this example the home owners are most likely going to receive a bit more net value for their home than trying to sell it themselves. Please keep in mind that every trade is different and individual circumstances will vary.
Repairs
All homes require repairs and updating to be ready for sale. When a builder takes a home in trade he has developed a plan to address those items and will be able have his crews handle the repairs once you have moved out of the home.
By conducting the repairs with his crews and in a vacant home, he is often able to save on costs versus what they would cost you to have the same work done. Builders are also less inclined to be worried about small cosmetic items which may make a typical home buyer nervous.
Benefits
The builder will often take your home in its current condition without requiring you to replace the carpet, do paint touch up or fix sheetrock damage.
You can avoid the trouble of negotiating a sale or dealing with odd buyer requests. You will not have to be ready to jump at a moment’s notice when a Realtor wants to show your home of have any pressure to keep the home in show ready condition all the time.
However, the biggest benefit is that you are able to move when you are ready into a home you want in a timely manner with minimal disruption to your life.
What Can You Trade
The best trades are when the property you are trading in is worth less than one half the price of the property you are seeking to purchase.
Most commonly a family will trade in their existing home. However, sometimes a family will offer a vacant lot or an investment property.
Thank You
During down markets, trading is a great means of moving without taking the risks associated with attempting to sell your existing home. In a hot market, trading may offer a great means of being able to move on the house you want before someone else beats you to it.
Either way, if you are considering a move, look at all your options including trading. The last part of this series will detail the steps of how a trade will work. To see the entire series visit ourblog.
If you have a question on how to a trade program works, please feel free to email your questions to our offices. The Edinburgh Group is a full service building firm serving the Upper East Tennessee. We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.
Please feel free to leave your comments, drop us an email at edinburghhomes@gmail.com or call our office at 423-366-0431.
If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance. If you know a family or client who may be in need of our services, we welcome and honor your referrals.
Monday, February 14, 2011
First Time Home Buyers
First Time Home Buyers
Kingsport New Homes
Congratulations on deciding to purchase a new home. You’ll always remember the feeling that comes with buying your first home. The process requires quite a bit of careful research, but that doesn’t mean it has to be difficult. Ask any of our homeowners who have chosen Edinburgh Homes, and they’ll tell you the same thing: When it comes to buying a house, don’t settle for less. From the minute we break ground to the day you move in and beyond, we’ll make sure all the details are right. Because at Edinburgh Homes, we’re just as excited as you are.
Owning Verses Renting
What are the advantages of owning verses renting a home?
It's never too early or too late to plan for your future. Paying $750 rent per month now is the equivalent of buying a home for $100,000. In 40 Years with approximately 4 percent inflation per year, your $750 per month rent may increase up to $3,600 per month. With owning you could have your mortgage paid off in as little as 15 years. Owning a home is a very wise investment. Over time you should build up equity that can be used to pay for home improvements, a bigger home, etc. Real Estate historically is one of the most stable markets available to invest your money in. There are also tax advantages to owning. The interest you pay on your mortgage may be tax deductible. Talk to your tax preparer for more information.
Buying a home is probably the biggest financial commitment you'll ever make. Buying a home is not just a dollars-and-cents investment; it's an investment in your life. It will create a sense of stability and identity for you and your family. Regardless of how times change, owning a home remains the cornerstone of the American dream.
The benefits of buying, when able to, far outweigh those of renting. But in the long run, owning a home is extremely important since your home is one of the biggest investments you can make. The key to this is home equity. Equity is essentially the value of the home.
Here are just a few of the many advantages to owning vs. renting
- You can build equity No matter how much rent you pay, 100 percent of your apartment or house still belongs to your landlord. But every time you make an amortized mortgage payment, you own a little more of your house. Initially, interest makes up the vast majority of your payments, but the proportion is constantly shifting in your favor. If real estate values rise, you’ll be even farther ahead. The longer you plan to stay put, the more of this benefit you will reap.
- Tax Deduction You can usually deduct mortgage interest on your tax return, which can mean big savings. If you’re in a 28% tax bracket and have a $150,000 mortgage at 7%, the first full year you own your home you’ll most likely be able to deduct more than $10,000 in interest. That translates into a tax savings of almost $3,000. In addition, even if you sell your principal residence for more than what you paid, you may not have to pay capital gains taxes. (There are limits, so consult a financial advisor for advice on your particular situation.)
- Pride of ownership A house may be an investment, but first and foremost it’s a home for your family. Even without the financial benefits, many people like the stability and sense of pride that comes with owning a home. You can renovate it to suit your own needs, plant a vegetable garden in the back and let the cat scratch the walls knowing there’s no landlord to impose his or her rules.
Why Buy a New Edinburgh Home?
- Choices When shopping among existing homes, you have to take the previous owners' style into consideration. Do you pay even more to redecorate or do you make do with someone else's choices? A new Penn Home, however, provides you with numerous design, color and material options.
- Modern Appliances Appliance manufactures introduce new models every year and Penn Homes is able to offer you the latest state-of-the-art equipment at the time of completing your new home.
- Floor Plans Take a tour of many existing homes and you will find dated floorplans. We offer you a variety of modern layouts and styles to suit your family's needs and lifestyle.
- Low Maintenance Why worry about constantly maintaining your home if you don't have to? A new Penn Home offers the latest and greatest materials that technology can offer. New Homes are virtually maintenance-free for many years.-
Please visit our website at edinburghcommunity.com if you have any questions or please feel free to email me directly at edinburghhomes@gmail.com
Monday, October 25, 2010
No Excuse Not to Buy a Home Now
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.
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If you are looking to buy are sell a house, please don't hesitate to give us a ring at 423-218-2008
Friday, October 22, 2010
The Ten Biggest Mistakes in Home Buying
The Ten Biggest Mistakes in Home Buying
1. Not doing your homework
You’ve probably heard the old maxim: “Knowledge is power.” Nowhere is this truer than in real estate. With a price tag that’s two or three times your annual salary, if ever a purchase demanded preparation it’s home buying.
It can be overwhelming when you think about all the factors that can affect a home’s value: its location, the school district, deed restrictions, taxes, amenities. That’s why it’s imperative that you do your homework before you start. With all of the information available today on the Internet, from Realtors and in housing guides, there’s really no excuse for entering the market ill-prepared.
2. Trying to make a shrewd investment
It’s easy to think we are all financial geniuses. No doubt some of you are. So, Mr. Gates and Mr. Buffet, you have my permission to move on to the third biggest mistake in home buying. As for the rest of you, forget everything they told you in that late-night infomercial. While real estate investing can make a great career, it’s no place for amateurs.
As simple as it may sound, when it comes to buying a home, your best bet is to choose one that appeals to you. The chances are very good that if you like it others will, too.
Am I suggesting that you throw caution to the wind? Lead with your heart and not with your head? Absolutely not, but if you choose a neighborhood where you and others like you want to live and a home that’s attractive and structurally sound, then you probably won’t go wrong. If you want to be known as a shrewd real estate investor, then wait at least three to five years before selling and you can tell everybody that you outguessed the market.
3. Choosing a poor location
OK – you’ve found the perfect home. It’s in a good school district, it’s got great curb appeal, a terrific floor plan that fits your family and the price is right. The only drawback is the bowling alley that backs up to it. Walk away.
Nothing spoils life and resale value like a poor location. If it bothers you now, don’t think you will learn to live with it. The flood lights from that office building across the way will only get brighter with time. The planes on final approach to the airport will only get louder and more frequent.
The best looking home, the most extravagant landscaping, tall fences, and insulated windows will never overcome a homesite near a pig farm (no offense to pig farmers).
6. If buying a resale, not having the home properly inspected
I can’t emphasize this one enough. When you find your dream home, it’s love at first sight. As with all
love affairs, you begin to lose your objectivity and see only what you want to see. “OK, so the foundation is cracked. But, isn’t this the cutest little window you’ve ever seen?” Now is a good time to seek professional help.
They’re called structural and mechanical inspectors. Good ones are worth every penny you pay them. A good one is licensed by the state (ask to see his or her certificate) and has no personal relationship with you, the seller, or the Realtor. This is someone you pay for a professional, unbiased opinion about the structural integrity and mechanical performance of the home you’re planning to buy. They will inspect every major component of the house from the foundation to the rafters, including the central air, furnace, water heaters, plumbing and electrical. You will also want to have the home inspected for termites. As much as it may hurt to hear something negative about the one you love, this is when you want the ugly truth.
Many resale homes were built when energy codes were more lenient or nonexistent. Independent third-party performance verification inspections that test for energy-efficiency can make a big difference in the performance of your home and its effect on your pocketbook.
You and the seller will be given a written report with a list of items that must be repaired before you close the deal. Usually the contract spells out limits on what the seller is obligated to pay for repairs. If the cost of recommended repairs exceeds this amount and the seller is unwilling to pay for them or to adjust the sales price, DO NOT proceed. (You may elect to pay the difference if the overall deal is still a good one.) This could be the toughest decision of your life, but ignore the engineer’s warning and you will live to regret it
If you’re shopping for a new home, you probably know where you want to live, so you’ll be comparing Home Builders in that area of town. You’ll look for home designs that appeal to you in a price range you can afford. Once you’ve narrowed your search to one or more builders’ homes, your next step should be to take a long hard look at the builders. Here are the most important questions you should answer about any builder before you let them build your home:
How long have they been in business? How many homes have they sold? What do their Homeowners think of them? How many of the Homeowners would buy from the builder again? What do other builders say about them? What industry recognition have they received? What does the Realtor community think of them? What kind of warranties do they offer? Do they have a department solely dedicated to warranty issues? Do they have an energy-efficiency or green building program?
The best way to check out a builder is to ring some doorbells and knock on doors. Visit the neighborhoods where they build and ask Homeowners about their experiences. You should talk to at least three to five neighbors and get a consensus before you make one of the largest investments of your life.
If you don’t get satisfactory answers to most of these questions, choose another builder. If none of them pass this test, choose another part of town. Beyond all the fancy advertising and hype, builders have only one thing of real value: their reputation. If the one you’re considering doesn’t have a good one, they shouldn’t get your business.
1. Not doing your homeworkYou’ve probably heard the old maxim: “Knowledge is power.” Nowhere is this truer than in real estate. With a price tag that’s two or three times your annual salary, if ever a purchase demanded preparation it’s home buying.
It can be overwhelming when you think about all the factors that can affect a home’s value: its location, the school district, deed restrictions, taxes, amenities. That’s why it’s imperative that you do your homework before you start. With all of the information available today on the Internet, from Realtors and in housing guides, there’s really no excuse for entering the market ill-prepared.
2. Trying to make a shrewd investment
It’s easy to think we are all financial geniuses. No doubt some of you are. So, Mr. Gates and Mr. Buffet, you have my permission to move on to the third biggest mistake in home buying. As for the rest of you, forget everything they told you in that late-night infomercial. While real estate investing can make a great career, it’s no place for amateurs.
As simple as it may sound, when it comes to buying a home, your best bet is to choose one that appeals to you. The chances are very good that if you like it others will, too.
Am I suggesting that you throw caution to the wind? Lead with your heart and not with your head? Absolutely not, but if you choose a neighborhood where you and others like you want to live and a home that’s attractive and structurally sound, then you probably won’t go wrong. If you want to be known as a shrewd real estate investor, then wait at least three to five years before selling and you can tell everybody that you outguessed the market.
3. Choosing a poor location
OK – you’ve found the perfect home. It’s in a good school district, it’s got great curb appeal, a terrific floor plan that fits your family and the price is right. The only drawback is the bowling alley that backs up to it. Walk away.
Nothing spoils life and resale value like a poor location. If it bothers you now, don’t think you will learn to live with it. The flood lights from that office building across the way will only get brighter with time. The planes on final approach to the airport will only get louder and more frequent.
The best looking home, the most extravagant landscaping, tall fences, and insulated windows will never overcome a homesite near a pig farm (no offense to pig farmers).
4. Overlooking an inferior floor plan for an attractive exterior
I don’t mean to downplay the importance of curb appeal. A home that turns your head as you drive down the street can be a real asset. Resale will be a lot easier if you don’t have to stand on the curb shouting, “No, wait! I know it looks bad, but this home’s got great personality!” If the romance doesn’t continue when you open the door, then you’ve got a problem that will be difficult to unload.
You want a home that makes your heart beat faster when you first open the door. It’s got to have a layout that makes people feel comfortable, one that responds to the way we live today. Open. Friendly. Functional.
I’ve seen it happen a hundred times. Buyers approach a home with an exterior they’re not crazy about, then they discover a fantastic floor plan, and when they come back out, the exterior seems to
have magically improved.
If I had to choose between a good-looking exterior or a knockout interior – and I couldn’t have both – I’d choose the great interior any time. After all, that’s where you live every day.
5. Not considering how your family wants to live
We all carry around a mental picture of the perfect home. If you’re a child of the 60’s your ideal home probably looks like the Cleaver’s house. Younger shoppers may be searching for the Brady’s or the Cosby’s home, or maybe even the Taylor’s home from Home Improvement. These images seldom fit the way we really live.
It’s also not about finding a home your parents would like (unless they’re helping with the down payment). It’s not choosing a home your best friends would want.
This home only needs to fit one family – yours. Your comfort and happiness depends on how well you can judge that fit.
Start by thinking of how you live now. Try not to be influenced by those fantasies of how life would be if only you had the right home. If your idea of fun is watching reruns of Jeopardy in your pajamas, then look for a TV room that accommodates your favorite naugahyde reclining lounger. If you like to have friends and family over for informal get-togethers, then look for a large kitchen that’s open to the Family Room. How many rooms do you need? How should they be arranged? Master up or down? Will you have use for a home office?
Don’t overlook how your family lives outside, as well. Will you use a pool or would a hot tub suffice? Do you like to garden and work in the yard, or would you rather have less maintenance?
If you’re buying a used home, you’ll have to look beyond the current owner’s décor and furnishings. If it’s a builder’s furnished, new model home, the toughest part will be facing the fact that the decorator and furniture don’t come with it. If you’re honest with yourself, you can find a home that will fit your family and feel like…well, home.
I don’t mean to downplay the importance of curb appeal. A home that turns your head as you drive down the street can be a real asset. Resale will be a lot easier if you don’t have to stand on the curb shouting, “No, wait! I know it looks bad, but this home’s got great personality!” If the romance doesn’t continue when you open the door, then you’ve got a problem that will be difficult to unload.
You want a home that makes your heart beat faster when you first open the door. It’s got to have a layout that makes people feel comfortable, one that responds to the way we live today. Open. Friendly. Functional.
I’ve seen it happen a hundred times. Buyers approach a home with an exterior they’re not crazy about, then they discover a fantastic floor plan, and when they come back out, the exterior seems to
have magically improved.If I had to choose between a good-looking exterior or a knockout interior – and I couldn’t have both – I’d choose the great interior any time. After all, that’s where you live every day.
5. Not considering how your family wants to live
We all carry around a mental picture of the perfect home. If you’re a child of the 60’s your ideal home probably looks like the Cleaver’s house. Younger shoppers may be searching for the Brady’s or the Cosby’s home, or maybe even the Taylor’s home from Home Improvement. These images seldom fit the way we really live.
It’s also not about finding a home your parents would like (unless they’re helping with the down payment). It’s not choosing a home your best friends would want.
This home only needs to fit one family – yours. Your comfort and happiness depends on how well you can judge that fit.
Start by thinking of how you live now. Try not to be influenced by those fantasies of how life would be if only you had the right home. If your idea of fun is watching reruns of Jeopardy in your pajamas, then look for a TV room that accommodates your favorite naugahyde reclining lounger. If you like to have friends and family over for informal get-togethers, then look for a large kitchen that’s open to the Family Room. How many rooms do you need? How should they be arranged? Master up or down? Will you have use for a home office?
Don’t overlook how your family lives outside, as well. Will you use a pool or would a hot tub suffice? Do you like to garden and work in the yard, or would you rather have less maintenance?
If you’re buying a used home, you’ll have to look beyond the current owner’s décor and furnishings. If it’s a builder’s furnished, new model home, the toughest part will be facing the fact that the decorator and furniture don’t come with it. If you’re honest with yourself, you can find a home that will fit your family and feel like…well, home.
6. If buying a resale, not having the home properly inspected
I can’t emphasize this one enough. When you find your dream home, it’s love at first sight. As with all
love affairs, you begin to lose your objectivity and see only what you want to see. “OK, so the foundation is cracked. But, isn’t this the cutest little window you’ve ever seen?” Now is a good time to seek professional help.They’re called structural and mechanical inspectors. Good ones are worth every penny you pay them. A good one is licensed by the state (ask to see his or her certificate) and has no personal relationship with you, the seller, or the Realtor. This is someone you pay for a professional, unbiased opinion about the structural integrity and mechanical performance of the home you’re planning to buy. They will inspect every major component of the house from the foundation to the rafters, including the central air, furnace, water heaters, plumbing and electrical. You will also want to have the home inspected for termites. As much as it may hurt to hear something negative about the one you love, this is when you want the ugly truth.
Many resale homes were built when energy codes were more lenient or nonexistent. Independent third-party performance verification inspections that test for energy-efficiency can make a big difference in the performance of your home and its effect on your pocketbook.
You and the seller will be given a written report with a list of items that must be repaired before you close the deal. Usually the contract spells out limits on what the seller is obligated to pay for repairs. If the cost of recommended repairs exceeds this amount and the seller is unwilling to pay for them or to adjust the sales price, DO NOT proceed. (You may elect to pay the difference if the overall deal is still a good one.) This could be the toughest decision of your life, but ignore the engineer’s warning and you will live to regret it
7. If buying new, failing to check out the builder’s reputation
If you’re shopping for a new home, you probably know where you want to live, so you’ll be comparing Home Builders in that area of town. You’ll look for home designs that appeal to you in a price range you can afford. Once you’ve narrowed your search to one or more builders’ homes, your next step should be to take a long hard look at the builders. Here are the most important questions you should answer about any builder before you let them build your home:
How long have they been in business? The best way to check out a builder is to ring some doorbells and knock on doors. Visit the neighborhoods where they build and ask Homeowners about their experiences. You should talk to at least three to five neighbors and get a consensus before you make one of the largest investments of your life.
If you don’t get satisfactory answers to most of these questions, choose another builder. If none of them pass this test, choose another part of town. Beyond all the fancy advertising and hype, builders have only one thing of real value: their reputation. If the one you’re considering doesn’t have a good one, they shouldn’t get your business.
8. Not getting what you want because you’re impatient
To borrow a phrase from the Rolling Stones, time is on your side. Show me someone in a hurry to buy and I’ll show you someone who pays too much. There are a lot of things you can rush into and recover from later, but this does not include marriage or buying a home. Never, ever, ever, rush into buying a home. Have I made my point yet? It is the single largest investment most of us ever make. It requires an enormous amount of energy, effort and research. It takes time to do it right.
You need time to do your homework. You’ve got schools to check, tax rates to compare, mortgage companies to shop, neighborhoods to drive, and – if it’s a new home – you need to check the builders’ reputations (See #7 above).
If it’s a used home, you need time to negotiate. Seldom should you pay the “asking price” on a used home. The longer you can take, the better the deal you can usually make. If you find yourself in an unavoidable time bind because of a transfer or the impending sale of your home, try to make arrangements to delay the purchase. You can always store your non-essential things and rent in the interim. Sometimes people who purchase your home are willing to lease it back to you on a pro-rated basis if you need extra time. It doesn’t hurt to ask and it could save a lot. Do the math. If patience can save you $5,000 on the purchase price, wouldn’t that be worth it?
Whatever you do, even if you don’t have time and you must move forward, try not to show it until after the price is set.
9. Waiting for a better time to buy based on the market
and interest rates
Buy low. Sell high. It’s a great plan if you’re a fortuneteller, but for the rest of us mere mortals, here is the best advice for when to buy a home: There is no time like the present. You know what houses cost. You know what interest rates are. You know you have a job (If not and you’re not independently wealthy, maybe you should consider putting it off).
Warren Buffet says, “the rear view mirror is always clearer than the windshield.” Looking back, we can all see when the best time to buy a home would have been –it is hard to find a better time than the present. Who can predict the future? The best we can do is learn from the past. History shows that those who purchased homes and kept them for three to five years or more did better than those who didn’t. How can you argue with that?
Will interest rates be lower some day? Maybe – then you can refinance. Will home prices ever be significantly lower? Probably not. Will you be making money in the future? We all hope so. Do you have a crystal ball? Stop your waiting. Just do it.
10. And the biggest home buying mistake…drum roll, please…
not buying at all!
- From David Weekley
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