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.
With closing day rapidly approaching, you're almost to the finish line of your home purchase. However, before you complete your home purchase, you will need to conduct a final walk-through of the property.
Ultimately, a final walk-through offers a valuable opportunity to identify any last-minute problems with a residence. If you encounter any issues during a final walk-through, you can ensure that the seller can correct these problems prior to a home closing.
Preparing for a final walk-through is key. Lucky for you, we're here to help you get ready for a final walk-through so that you can complete a successful home purchase.
Now, let's take a look at three tips to help you prep for a final walk-through.
1. Avoid a Closing Day Walk-Through
When it comes to a final walk-through, it pays to be cautious. Thus, you should give yourself plenty of time to set up a final walk-through. This will allow you to avoid the dangers associated with finding home problems on the same day as a house closing.
Try to schedule your final walk-through at least a few days before you close on a residence. That way, if you discover problems with a house, you can ask the seller to respond to these issues and reduce the risk of a home closing delay.
2. Keep an Eye Out for the Seller's Leftover Belongings
A final walk-through gives you an opportunity to view a house that is virtually empty. But if you find that a seller has left behind various belongings, you should not hesitate to ask the seller to remove his or her possessions.
Furthermore, a home seller should leave a house in "broom-swept" condition; this means a home's walls, floors and other surfaces should be dust- and dirt-free. If you find trash and other debris in a home, you can ask the seller to clean the property.
3. Be Ready to Test All Appliances
A homebuyer may acquire a refrigerator, washer, dryer and other appliances as part of a home purchase. These items often are expensive to replace, and as such, you'll want to make sure they work properly during a final walk-through.
If an appliance does not perform as required, you have the right to request that the seller repair or replace the appliance. Or, you may be able to receive financial compensation for the defective appliance.
When it comes to prepping for a final walk-through, there is no reason to work alone. Fortunately, if you collaborate with an expert real estate agent, you can receive plenty of support in the days leading up to a home closing.
In addition to providing homebuying assistance, a top-notch real estate agent is happy to attend a final walk-through. By doing so, this housing market professional can help you identify any potential home problems and resolve such issues as quickly as possible.
Plan ahead for a final walk-through, and you can avoid the risk of discovering assorted home problems after you close on a residence.
If you are in hot pursuit of your dream home, it is important to do everything you can to gain a leg up on the competition. That way, you can acquire your ideal residence as quickly as possible.
Now, let's take a look at three tips to help you gain a competitive advantage over your homebuying rivals.
1. Keep Track of the Local Housing Market
The top houses sell immediately, and as such, you may need to act fast to find and purchase your dream residence. If you keep track of the local housing market, however, you will be better equipped than other buyers to instantly acquire a house that suits you perfectly.
Monitor the housing market in cities and towns where you want to reside. Then, if you find a house you may want to buy, don't hesitate to set up a showing. And if you like what you see, you should submit a competitive offer to purchase this residence.
2. Get Your Finances in Order
Entering the housing market with pre-approval for a mortgage usually is a good idea. Because if you know how much you can spend on a residence, you can tailor your house search accordingly.
To get pre-approved for a mortgage, you should meet with a variety of banks and credit unions. Find out what mortgage options are available, and learn how different types of home financing work. Next, you can select a mortgage that enables you to begin your house search with a budget in hand.
Of course, if you have any concerns or questions about home financing, you should address them right away. If you speak with mortgage specialists at a bank or credit union, you can get the insights you need to make an informed mortgage selection.
3. Employ a Real Estate Agent
A real estate agent is a difference-maker, particularly for a homebuyer who is shopping for a residence in a fierce housing market. Typically, a real estate agent will work with a buyer to craft an in-depth property buying strategy. A real estate agent and homebuyer then will work together to put this plan into action and streamline the property buying journey.
In addition, a real estate agent offers guidance at each stage of the homebuying cycle. He or she first will help you hone your home search to a select group of cities and towns. A real estate agent next will keep you informed about houses that become available that match your homebuying criteria. If you find a house you want to purchase, a real estate agent will help you submit an aggressive property buying proposal. And if your offer to buy a home is accepted, a real estate agent will make it simple for you to finalize your house purchase.
As you get ready to pursue your dream residence, you should devote plenty of time and resources to prepare. Thanks to the aforementioned tips, you can prep for the homebuying journey, gain a competitive advantage over rival buyers and accelerate your house search.
Buying a house can be complicated. Before you can get started, you must know how much money you can spend, what kind of house you're looking for, what kind of house you can afford in your area and other factors. This is a good time to get started! Below are four concrete things you can do to get prepared to purchase a house in 2020.
Know Your Must-Haves
Every house is different. Number of bedrooms, lot size and home size, location and character of the neighborhood are all variables that change from one house to another. Knowing what your priorities are can help you narrow your search as you look for a house.
In order to know your must-haves, it will be helpful to know your goals for the future. Whether you plan to have children or more children, pets or more pets, or whether you plan to take up hobbies that require vast amounts of space are all factors that could affect what kind of house you will want. Talk to the other members of your household to make a list of must-have features for your new home.
View the Listings
Know what kind of homes are selling in the area where you plan to buy. Knowing what homes are available, and how much they cost, can help you get a sense of the house that you can realistically buy when the time comes. Viewing listings can also get you thinking about other house features you may not have considered yet.
Make a Budget
Knowing how much you can afford to spend is important. Contact lenders in your area to find out how much money you'll qualify to borrow. Doing this early can help expedite the shopping process, as getting pre-approved can take a few days.
Examine your savings and determine how much you can put down for your down payment. Put some money aside for moving expenses and household repairs, assuming the house you buy may need some fixing-up before you move in.
Not sure how much to set aside for moving? Contact a few movers in your area to get guesstimates. You won't be able to get an exact quote until you have a delivery location, but movers may be able to give you a rough idea.
Once you know how much you plan to borrow and how much you can put down, pay closer attention to the prices in the house listings in the areas where you plan to purchase a home. This will tell you if you can really afford to buy a house in the neighborhood where you want to live.
Find a Real Estate Professional
Interview real estate professionals to find the real estate professional who will help you through the home buying process. Look for a real estate professional who communicates and listens well, and who demonstrates understanding of your priorities. The real estate professional you choose should have experience with homes in the neighborhoods where you would like to buy. Working with an expert can help make the experience less stressful and more satisfying overall.
You know that you want to buy a house, but you may have only a limited amount of time to conduct a home search and discover your ideal residence. Luckily, there are many things that you can do to speed up your homebuying timeline.
Now, let's take a look at three tips to help you accelerate your journey from homebuyer to homeowner.
1. Refine Your House Search
A list of homebuying criteria is a must-have, particularly for a property buyer who wants to enjoy a quick, seamless house search. In fact, with homebuying criteria in hand, you can refine your house search and move one step closer to finding your dream residence.
As you craft a list of homebuying criteria, think about where you want to reside too. That way, you can further narrow your house search and focus exclusively on homes in your preferred cities and towns.
2. Get Pre-Approved for Home Financing
At first, it may seem like a lot of work to get pre-approved for a mortgage. But if you receive pre-approval for a mortgage, you may be able to avoid time-consuming home financing hurdles down the line.
Oftentimes, it does not take long to get the financing you need to buy a house. Banks and credit unions are available across the United States, and these financial institutions are happy to teach you about a variety of mortgage options. Then, you can select a mortgage that matches your financial needs and kick off your homebuying journey with a mortgage at your disposal.
3. Collaborate with a Real Estate Agent
If you face a time crunch to purchase a house but don't know how to start the homebuying journey, there is no need to stress. By hiring a real estate agent who can offer in-depth homebuying guidance, you can find your dream house in no time at all.
A real estate agent will do everything possible to ensure you can speed up the homebuying journey. First, he or she will learn about your homebuying goals and help you create a homebuying strategy. A real estate agent next will help you search for residences and assess houses in the cities and towns of your choice. And if you discover a house that you want to buy, a real estate agent will help you craft a competitive offer to purchase your ideal residence.
Let's not forget about a real estate agent's housing market expertise, either. A real estate agent understands how to navigate a buyer's or seller's market. As a result, he or she will make it simple for you to review houses that match or exceed your expectations. If you have concerns or questions as you pursue your dream home, a real estate agent is ready to respond to them as well.
Ready to streamline the homebuying journey? Use the aforementioned tips, and you can quickly and effortlessly find a great house and make your homeownership dream come true.