If you’re thinking about buying a home, you have a lot of decisions ahead of you. Among these are the many decisions about what kind of home you should buy. One of the first choices you should make is whether to look at resale homes, new homes or both. It may seem like that’s a decision that can wait until later down the road, but you should consider it early because it will make a difference in how you look at houses. If you’re looking for a resale, you should work with a Realtor. On the other hand, if you decide to buy a new home from a builder, you should go to the sale office without a Realtor. You’ll have more negotiating room if the builder doesn’t have to pay a commission to your Realtor. Realtors usually only take their buyers to new homes if the builder is willing to pay them a commission. This means you could miss out on some new homes altogether if you just leave it up to a Realtor. You also have the option of looking at new homes on your own and looking at resales with a Realtor. Just make sure that the Realtor knows that you’re going out on your own as well, especially if they ask you to sign a Buyers Broker agreement.
The home, the property and the neighborhood will be different between a new home and a resale. Even the buying process if vastly different in the two scenarios. Which way should you go? Let’s look at some of the key differences.
The process of buying a new home is very different than that of buying a home from a homeowner, especially in this market. Home builders are set up to make the process easy for buyers. They often work with lenders, title companies and others who all know what’s going on. You walk into the sales office and they can tell you about interest rates, tax and mortgage payments and everything. Many builders offer incentives in the form of closing costs or upgrades to get their homes sold. Individual sellers, on the other hand, are human beings, not businesses. They may be offended that you want a carpet allowance to replace the purple carpet. They may not have the cash to help you pay your closing costs. Worse, they may be in a distressed situation, like a short sale, and everyone will have to wait for their lender ‘s approval of every little thing. Every penny matters to the seller, so if your inspection turns up a major problem that needs to be repaired, it might jeopardize the sale.
Property taxes can be higher in new neighborhoods if they’re in a new city or a new area of a city. This is because the cost of building roads, parks and other community amenities is incorporated into the property taxes for the first several years. You can find out the tax rate in a new home community by asking the sales office. Resale homes usually state the tax rate in the MLS listing. Sometimes this higher property tax rate can be avoided if a new home community is built in an area with existing infrastructure.
The choice of buying a new home or a resale is only one of the many, sometimes overwhelming decisions facing you as you search for a new home. Think about the pros and cons of each and make the best decision for you and your family.
If you live in Southern California or are moving there, be sure to look at these new homes in San Diego and new homes in Chula Vista . You’ll be glad you did.
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