Why You Need a Real Estate Agent When Purchasing a New Construction Home
When buyers consider newly built homes, they sometimes hesitate, thinking these homes might not be as durable or of the same quality as older ones. This misconception can lead them to overlook some of the best opportunities available in today's market. In fact, according to Builder Online: "As the availability of resale homes remains limited and the price gap between new and existing homes decreases, new construction homes are becoming a more appealing choice for buyers. Incentives like interest rate buydowns are also helping to address affordability concerns." So, how do you ensure that investing in a newly built home is a smart move? Let’s explore why working with an expert real estate agent can make all the difference when you're buying new construction. Selecting the Right Builder Choosing the right builder is key to ensuring you get a high-quality home. Reputable builders follow strict construction codes, use cutting-edge techniques, and often provide warranties covering structural components for years. The Mortgage Reports highlights this critical step: "When purchasing new construction, one of the most important decisions is selecting the right builder. This choice can greatly influence the quality and overall satisfaction with your new home." While researching builders on your own is an option, it can be time-consuming and overwhelming. By partnering with a local real estate agent, you gain access to their extensive knowledge of builders and new developments in your area. Here’s how your agent can help: Evaluating Builder Reputation: Your agent will point you toward builders with solid reputations and great reviews from past clients. They'll also confirm that the builder is licensed, insured, and affiliated with professional organizations like the National Association of Home Builders (NAHB), indicating adherence to high industry standards. Touring Model Homes: Agents often know which builders have model homes you can visit. Touring with your agent gives you a trained eye to notice the finer details—everything from finishes to floor plans—ensuring you’re aware of the quality you're getting. Understanding Warranties and Incentives: Many reputable builders offer warranties covering structural issues and other major components of the home. Your agent will guide you through these offers, ensuring you understand what’s covered and what incentives may be available. Coordinating Inspections: Even with new homes, inspections are crucial. Your agent will schedule inspections with certified professionals, ensuring that the home meets all safety and quality standards before you close. Why an Agent Is Vital When Purchasing New Construction Data shows that homebuyers generally rate their real estate agents more favorably than their builders after a purchase. That’s because agents offer expertise and advocacy throughout the process, while the builder’s on-site agent works for the builder. As Realtor.com notes: "If you’re considering buying new construction, it’s essential to have your own real estate agent from the start. Even if the builder’s agent seems helpful, you need someone representing your interests." Bottom Line If you’re thinking about purchasing a newly built home, don’t let common myths dissuade you. A knowledgeable real estate agent can help you find a home that meets your needs and provide peace of mind throughout the process. Let’s work together to find a home you'll love for years to come.
Time to Upgrade to Your Dream Home: Here’s Why It’s a Smart Move
Have you been thinking about selling your current home and upgrading to a more spacious or luxurious one? If so, you’re not alone. According to a recent survey from Inman, one of the primary motivations for today’s homebuyers is the desire for more space and a better home environment. (see graph below): However, like many others, you might have been hesitant to move forward due to challenges in the real estate market. That’s completely understandable. When upgrading to a home that might come with higher monthly costs, affordability becomes a major factor. The good news? Right now could be the ideal time to make that dream upgrade. Here’s why: You Have Significant Equity to Work With One of the best advantages in today’s market is the amount of equity you’ve likely accumulated in your home. Even with recent shifts, home prices have been on a steady rise over the years, giving many homeowners more equity than ever. According to Selma Hepp, Chief Economist at CoreLogic: “Home price growth has continued, allowing homeowners to accumulate about $315,000 in average equity, which is roughly $129,000 more than before the pandemic.” What does this mean for you? If you’ve owned your home for several years, you likely have a considerable amount of equity that can be used toward a down payment on your next home. This could significantly reduce the amount you need to finance, making the cost of upgrading much more manageable than you might think. To get a clearer idea of your equity, consider having a professional equity assessment from a trusted real estate agent. Mortgage Rates Are Trending Down, Increasing Your Buying Power Another key reason to act now is the current trend in mortgage rates. As rates fall, your monthly mortgage payments can become more affordable, which also boosts your overall purchasing power. Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), explains: “When mortgage rates decrease, the interest portion of monthly payments drops, making it easier for borrowers to afford homes that may have been out of reach at higher rates.” This means you could potentially qualify for a more expensive home than you previously thought. Working with a trusted lender can help you find the best financing options for your specific needs and budget. Bottom Line If you’ve been dreaming of selling your current home and upgrading to something larger or nicer, now may be the perfect time. With strong equity in your existing property and favorable mortgage rates, you’re in a great position to make the move. Let’s connect today to ensure you make the most of the opportunities in the current market and have expert guidance through every step of your homebuying journey.
How Much Does It Cost to Sell My House?
If you're considering selling your home, you're probably wondering how much it'll cost. While the total expenses will vary depending on factors like the offer you accept, whether you cover some of the buyer’s closing costs, and any repairs you decide to make, here’s a general guide to help you prepare for what’s ahead. (see graph below): Before we dive into the details, here’s some good news: many homeowners today have built up significant equity in their homes. This equity can often offset some or even all of the selling costs, and in many cases, there’s enough left over to help fund the purchase of your next home. Let’s explore some of the common costs associated with selling your house and where you might be able to save along the way. Closing Costs and Commission At closing, you’ll be responsible for certain fees that cover the sale’s completion. These include your own closing costs, and you might also offer to cover some of the buyer’s expenses as an incentive. As U.S. News Real Estate explains: “Closing costs are fees that are paid to finalize the transaction and transfer ownership of the home to the buyer. Sellers can expect to pay 2% to 4% of the sale price of the home in fees and taxes on top of the agent commission.” For example, based on the national median home sale price, closing costs in 2023 range from $7,740 to $15,480. Keep in mind that these figures can vary depending on state taxes and the commission agreed upon with your real estate agent. Additionally, if you’ve been making escrow payments for taxes and insurance, you may receive a credit at closing, which can help offset some of these costs. Pre-Listing Inspection and Repairs A pre-listing inspection is an optional step that can give you a heads-up on issues that might surface during the buyer’s inspection. This allows you to make any necessary repairs ahead of time, which could prevent buyers from asking for concessions later. However, if you prefer to skip this, your agent can provide advice on what minor fixes or cosmetic upgrades would yield the most return on investment, helping your house make a strong first impression. Home Staging In today’s competitive market, staging your home can make a big difference. Whether it involves bringing in rental furniture for a vacant home or adding décor to enhance the space, staging helps buyers envision themselves living in your home. Bankrate estimates the cost of home staging typically ranges from $782 to $2,817, though the price can vary. If you choose not to hire a stager, your real estate agent can offer tips on decluttering and rearranging furniture to make your home feel more spacious and inviting. The Importance of Working with a Real Estate Agent If you're looking to save money, it’s important to be strategic about where you cut costs. While you might opt out of optional expenses like staging or a pre-listing inspection, skimping on hiring a real estate agent can backfire. A great agent is invaluable—they offer tailored advice on pricing, marketing, and negotiating, helping you get the best return on your investment. Plus, their expertise in showcasing your home’s best features can actually help increase the final sale price. Bottom Line Curious about how much it’ll cost to sell your house? Let’s talk! We can walk through the specifics based on your home and help you understand what to expect so you can sell confidently.
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