5 Things Every Homebuyer Needs to Know About New Construction

If you want to buy a new construction home, there are five important things that you need to know.

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Buying a new construction property is very different from buying a resale property. There are five things that every homebuyer needs to know about new construction:

1. New homes may not be listed in the local MLS. This is important because you may not know all the new construction inventory available. You should connect with your local real estate agent who can give you insight as to what new construction homes are available and what new communities are coming into the area.

2. New construction homes are often sold before they are built. New construction communities may have floor plans available, but you won’t even see that inventory when you are ready to buy in a new area. If you are looking at a more established community, that’s why there are only a few homes available for sale, if any; the homes were sold before they were even built.

3. The first buyers may get the best discounts. New construction builders have relationships with lenders, and there are incentives available for you, especially if you buy while a new construction community is still in the first phase. They may offer credits, discounts for rates, or even some kind of credit towards your closing costs if you work with their preferred lender.

The builder may give you a design center credit rather than coming down on the price.

4. Builders don’t have a personal attachment to the home.
Sometimes, it’s just business. The numbers have to make sense for the builder. If you are buying in a newer community that hasn’t sold a lot of homes yet and there is still a lot of construction going on, the builders may work with you more on pricing. As time goes on, those prices will go up through the different phases. There will be fewer discounts available as demand grows and inventory shrinks.

5. Discounts may be available in the form of upgrades. When you work with a real estate professional, we know how to negotiate the best deal for you. The same is true when you buy a new construction home. For example, say a house is listed at $400,000 and the builder doesn’t want to go down on price. The builder may give you a design center credit so that you can pay for upgrades. For example, they may give you a $30,000 credit that you can use to upgrade your countertops, flooring, or lighting.

If you have any other questions about buying a new construction home, please feel free to reach out to my team. We would be happy to answer any questions that you may have, and we look forward to talking to you soon!

What Happens During the Inspection Contingency?

What is the home inspection contingency, and why is it so important? I’ll go over four key points for you today.

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The inspection contingency period is by far the most important contingency when buying a home. There are four key points that you need to know about in order to understand this process a little better.

1. What is the time frame allowed for the standard contingency period?
Usually, the contingency period lasts 17 days. In our current market, the inspection contingency period has dropped to 14, 12, or even 10 days depending on the property and how much activity is on it. Shortening the inspection contingency period helps the transaction move along at a faster pace.

2. What is inspected? There will be a general home inspection, pest inspection, and roof inspection. If you are buying an older home, you may want to get a sewer line or chimney inspection so that you understand the condition of all parts of the property. In addition to reviewing the physical condition of the property, you will also have the opportunity to review all seller disclosures during this time. Since they have lived in the house, they know a few more details than the inspection will review. For example, they’ll be able to tell you if there was a flood or fire in one of the rooms.

Pay attention to major issues or safety concerns.

3. What happens if I discover something?
In other words, what happens if something comes up on the home inspection report? Once this happens, you can submit a request for repairs asking the seller to correct the issue before close of escrow. Pay attention to any major repairs or safety concerns. Don’t ask for small, cosmetic issues to be handled. If you noticed that the living room needs a fresh coat of paint or that you want to replace the countertops, take care of that on your own. The seller can agree to take care of all, some, or none of the repairs. From that point, it is up to you to decide how to proceed.

4. Don’t submit a laundry list of repairs to the seller.
Again, highlight items that are important, like major roof repairs or safety concerns. Don’t ask the sellers to do something that you could easily take care of on your own, like replacing a light switch. If you do, you risk offending or irritating the seller, which could make negotiations more difficult down the line. Include bigger repairs so that the seller will take your requests seriously into consideration.

If you have any other questions about inspection contingencies or the home buying process, just give me a call or send me an email. I would be happy to help you!

3 Key Tips to Selling Your Home in the Fall

Keep your house looking neat and seasonal to make an impression on a potential buyer.

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Today, let’s talk about three key tips to selling your home in the fall.

1. Keep up the curb appeal. With the fall comes tricky weather and falling leaves, so just make sure that you keep everything in tip-top shape. Curb appeal is important because if someone doesn’t like the exterior of a house, they may not want to look at the interior. Keep your lawn clean, pick up leaves, and clear your walkways. Something else I like to do for every listing is to get a brand-new doormat. A clean, new one brings freshness to your porch, where an old one might not.

2. Lighting is key in the fall. The fall has shorter days and more shadows, so be sure to open the blinds and shutters to keep light coming in. You might also add some new light bulbs, making sure that all of them work, as well as bring light to the darker areas of your home. This could help a lot during showings by displaying any improvements you’ve made to the house.

Curb appeal is important because if someone doesn’t like the exterior of a house, they may not want to look at the interior.

3. The fall decor. Add touches like pumpkins or wreaths to freshen up that fall taste. Just make sure that you don’t go too far with it. Don’t leave your porch looking like a farmers market. Show just enough to look seasonal, but not so much that it detracts from the house itself.

If you have questions or would like information about anything else, please feel free to reach out anytime. I’ll be happy to answer any questions you may have.