Marjorie Youngren Team's Blog
It’s not unusual for homebuyers to enter the market with some preconceived notions about the differences between an existing home and new construction. These may be formed by talking to friends and loved ones about their successes and challenges. Others come from media sources, including the seemingly endless stream of reality home shows.
Regardless of how your ideas have been formed, it’s in every buyer’s best interest to conduct some due diligence and explore the gaps between opinions, myths, and real estate facts. Weighing the following pros and cons of new construction may help you hone your understanding and make a truly informed decision.
1: Home Customization May Be An Option
It’s important to distinguish between two types of new construction. There is the type in which you work directly with a builder and architect to design a home unique to your standards and desires. There’s also the type in which the house is already built, and you would be the first occupant. The idea that buying new automatically delivers input into the design is only reserved for the former. If you want control from the drawing board to turning the key, that can certainly be achieved by enlisting an architect and construction outfit.
2: New Home Customization Can Be Expensive
While adding all the latest Smart technology and energy-efficient products can provide the quality of life you are pursuing, these items do come at a premium. Some estimates place Smart technology options at a 30- to 50-percent higher cost than conventional appliances and devices. New construction costs also hover at approximately $150 per square foot and can uptick considerably if you plan to integrate high-end materials or unique floor plans. Customization can certainly result in the dream home you imagine. However, there may be a nightmarish price tag included.
3: New Home Construction More Energy Efficient
Energy expert resources generally agree that new homes and those built after 2000, are widely more energy-efficient than those built in the 20th Century. New construction living spaces utilize and estimated 20 percent less energy, on average and new HVAC systems could outpace older homes by as much as 50 percent. That equals real dollars and cents savings on monthly utility bills and annual home expenses.
4: New Construction May Lack Quality Materials
It’s an open secret that the construction industry utilizes more inexpensively crafted materials than older homes. For example, many new construction homes present the image of hardwood flooring at first blush. But upon further review, the materials used are sometimes floating flooring or far thinner than yesteryear oak and other hardwoods. While new construction usually likes quite shiny, the materials to build it may lack the durability and luster of older existing homes.
5: New Construction Is A Double-Edged Landscaping Sword
Buying a newly constructed home often means that you will have pleasure — or chore — of designing the grounds as well. The upside usually involves planning your outdoor living space precisely the way you want it. Options such as stone patios, verandas, permanent outdoor cooking stations and garden placement, among others, are all on the table.
But the downside is that a new landscape will not necessarily enjoy the robust aged trees, large flowering shrubs and deeply rooted lawns of established grounds. That may seem like six-in-one-hand and a half-dozen in the other. Those are the little differences that you are tasked with weighing when making an informed decision between new construction and an existing home.
Deciding whether to set up a home showing sometimes can be a tough decision. Yet a home showing can make a world of difference for a buyer as he or she searches for the ideal residence.
Ultimately, there are many reasons to schedule a home showing, and these include:
1. You can look beyond a home listing.
A home listing generally offers details about a house's age and features, as well as photographs of different areas of a residence. But a home listing can only provide so much information. Fortunately, a home showing enables you to assess a house in person and decide whether a residence is right for you.
During a house showing, you can walk around a residence and view each room. If you want to further pursue a residence after a showing, you can submit an offer to purchase. Or, if you find a house fails to match your expectations, you can always continue your search for your dream home.
2. You can gain comprehensive insights into a house's condition.
When it comes to evaluating a house's condition, it typically is a good idea to attend a showing. That way, you can get an up-close look at a home's condition and determine whether a residence needs major or minor repairs.
A home showing enables you to analyze a residence both inside and out. After a showing is complete, you can decide whether you are satisfied with the condition of a home and map out your homebuying journey accordingly.
3. You can imagine what it would be like if you purchase a home.
A home showing makes it easy to envision what life may be like if you purchase a particular house. As such, a showing may prove to be crucial as you pursue your dream residence.
If you feel good about a house following a showing, you should not hesitate to submit a competitive homebuying proposal. Conversely, if you feel uncomfortable with a residence, you may want to pursue other options.
Of course, hiring a real estate agent may be exceedingly valuable as you search for your ideal house. A real estate agent can schedule home showings at your convenience and provide plenty of tips to help you pursue residences in any housing market. By doing so, a real estate agent will empower you with the insights you need to make an informed decision about a house.
Let's not forget about the assistance that a real estate agent will provide after you find your dream house, either. At this point, a real estate agent will help you put together a competitive offer to acquire your ideal residence. And if you have any concerns or questions as you move along the homebuying journey, a real estate agent is happy to respond to them.
Ready to find your dream residence? Schedule a home showing, and you take the next step to acquire your ideal house.
An open house can be a life-changing event for a homebuyer. If you plan ahead for an open house, you should have no trouble determining whether a residence matches or exceeds your expectations. And if the answer is "Yes," you can proceed quickly to submit a competitive offer to acquire a house.
What does it take to prep for an open house? Here are three open house preparation tips that every homebuyer needs to know.
1. Understand Your Budget
Before you attend an open house, you should find out how much money is at your disposal. Thus, you may want to meet with banks and credit unions to see if you can get pre-approved for a mortgage. That way, you can kick off your home search with a budget in hand.
Although you know that you have only a certain amount of money to spend on a residence, it may be worthwhile to consider attending open houses for residences with initial asking prices that are above your price range. Because in some instances, a home seller may be willing to accept an offer that falls below his or her initial asking price.
2. Create a List of Questions
A home is one of the biggest purchases that a person can make, and as such, it pays to be diligent. If you craft a list of questions before an open house, you can get immediate responses from the showing agent. Then, you can determine the best course of action.
When it comes to an open house, there is no such thing as a "bad" question. As a homebuyer, it is paramount to get as much information as possible about a residence to determine whether a house is right for you. Therefore, if you create a list of questions in advance, you can improve your chances of getting the most out of an open house.
3. Consult with a Real Estate Agent
If you're uncertain about how to approach an open house, you're not alone. Fortunately, real estate agents are available nationwide who are happy to teach you the ins and outs of the real estate market. By doing so, these housing market professionals will make it easy to take an informed approach to any open house, at any time.
A real estate agent will always keep you up to date about new residences as they become available. Also, if you are interested in homes in a particular city or town, a real estate agent will notify you about open houses in this area. And if you need extra help prepping for an open house, a real estate agent is happy to assist you in any way possible.
Let's not forget about the support that a real estate agent provides throughout the homebuying journey, either. A real estate agent will help you submit an offer on a house, negotiate with a seller's agent on your behalf and much more.
Be diligent as you get ready for an open house – use the aforementioned tips, and you can fully prepare for an open house.
Buying a home is a process that can seem daunting and even a little scary to most first-time buyers. After all, being a homeowner is a huge financial and personal responsibility.
To make this lengthy process a bit more approachable, we’re going to break it down into five steps. While these five steps may be somewhat different for each person, depending on their own unique situation, they do comprise most home buyer’s experience.
If you’re interested in learning the steps you’ll need to take before owning your first home, read on.
Step 1: Know your long-term goals
Before you buy a home, you’ll want to have a clear understanding of what you, your spouse, and your family want from the next five or more years. You’ll want to make sure the area you’re moving to can provide things like career advancement and opportunity, good schools for your children, and so on.
These questions may seem obvious, but it’s an important conversation to have before making the long-term commitment of owning a home.
Step 2: Your budget and your needs
It might be tempting to hop online and start shopping for houses, but first you should get a clear idea of the size and cost of the house you’re looking for. This involves determining your budget, thinking about your credit and planning for your down payment.
Step 3: Mortgage pre-approval
Getting preapproved for a mortgage can be a great way to gauge the interest late and loan amount you’ll be approved for. You’ll need to gather paperwork, including income information (pay stubs), tax returns, and W-2 forms.
Be aware that lenders will run a detailed credit report. Since credit reports count as an inquiry, they can temporarily lower your credit score by a few points.
Applying to several lenders within a short period of time can make a significant impact on your score. However, it will start to rise again within a few months if you don’t open any new credit accounts or take out other loans.
Step 4: Get an agent
Real estate agents know the ins and outs of the home buying process better than anyone else. They’ll be able to guide you through the process and provide you with information that you can’t get anywhere else.
Step 5: Pick the right home for you
Now it’s time to start home shopping. However, before you begin, remember that getting approved for a loan doesn’t mean you must or should seek to spend the full amount on a home.
Plan for your needs, and keep the future in mind. Someday you might decide to upgrade, but in the meantime you can be building your credit and building equity in a smaller or more frugal home.
If you know you’d like to buy a home in the future, you’ve probably thought about saving money for all of the upfront costs that buying a home can bring. Saving the sizable amount of money that it takes for a down payment can be seemingly impossible to do. It’s impossible without making yourself seem miserable for a time, at least. You can save money creatively without sacrificing everything. Below, you’ll find some tips for saving money that work for your life.
Put Your Money Somewhere Safe
While investing in the stock market may seem like a good idea to put your savings on hyperdrive, it’s risky. When it comes to your savings, try high interest savings accounts and CDs. The latter is a particularly good option because you won’t be able to touch the money for the time period that the CD will mature. You’ll also earn a bit of interest on the funds that are in there.
If you plan to keep adding to your savings (which you should) a traditional savings account is best. You should have a dedicated account that’s solely for the house fund. Do some shopping around for the savings account that will have the best interest rate and be the easiest option for you. Remember that as boring as a savings account seems, it’s a safe bet for your money.
Apps Can Assist You
There are plenty of budgeting apps and apps that help you to set aside spare change. You should make use of these tools to help you reach your savings goals. Whether you need some help with budgeting or need to find ways to put your spare change to good use, there’s an app for that. You can even find apps that will reward you for good behavior. These apps may “tip” you a few bucks for going to the gym or completing a project on time. You’re saving money and doing good for yourself at the same time! Saving money for your future home can be fun if you find the right tools to help you.
One reason that many people don’t save a lot of money is that they lack specific goals. If you sit down and look at your budget, you’ll see where you can cut expenses. Then, you’ll be able to have clear cut goals of how much you can save on a weekly or monthly basis. With your eyes on the prize of homeownership, you should be motivated to save where you can. Having specific numbers in mind can be a big help in reaching your long-term goals.