With the real estate industry gaining more muscle, every new home builder is buying up land, laying out new plans and beginning construction in many parts of the country. As a new home buyer, this will give you a whole lot more options. But is a new home construction the right fit for you? Before you decide, hare a few things you should consider:
1. New homes not on local listings. Most home sellers have their property included by their real estate agents in the MLS but home builders usually have their own staff working for them on site for reasons such as cutting costs and wanting more control over the sales. This means that new homes may not show up in your agent's MLS search. Most Perth builders tend to advertise online and in the papers. You can work with your agent closely so all the possibilities, including those that aren't in the listings, are explored.
2. Sell first, build later. Builders need to have their finances arranged, plans laid out, and set the sales process, before they actually work on the building. They build display homes and let their prospective buyers examine them so they will get to see the floor plans, building design, fixtures, and finishings. When you're ready to accept the offer, you'll most likely be asked for a deposit - up to 10% of the price. Also, builders tend to release the new homes in phases. If there are 100 homes in the estate and the first ten homes sell immediately, it is not guaranteed that the homes of the next phases will still be priced the same. The real estate market can go up or down, and this affects how much the homes will cost during certain periods.
3. Discounts for the first buyers. A Perth new home builder will want to secure contracts early in the sales process. This will make them look good to future buyers and their lenders, as well. Consumers can use this to their advantage. You can have room to negotiate on the price if you're buying first. However, there's also the risk of tying yourself to the project before everything else has been settled. In case sales do not manifest, or you change your mind before the home is built, there's a chance you'll lose your down payment.
4. No emotional attachment. This is if you're comparing a resale home versus a new home. Sellers of old homes have lived in the house for many years, they've made memories there. With this, sellers could encounter uncertainties that could make them price the home higher that it should cost. A new home building company, on the other hand, does not have such sentiments. They just want to make sure that you are a qualified buyer.
5. Discounts through upgrades. Try negotiating with the builder. They may argue to give you discounts through upgrades. Instead of dropping a few thousand dollars for you and having that on the public record, they can accommodate you by upgrading something in the process - hardwood floors in place of carpets, perhaps, or better appliances.
Moving into a new home is a milestone. You don't want to go renting a house and handling repair problems. New homes may be more expensive, but that's value for your money right there.
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