Shopping for a new home, whether it is a new home or a resale home, is a big job. Everything from neighborhood, commute patterns and schools to available services need to be considered when making such an important decision. In addition to your needs and wish list, your family, both immediate and extended, wants to weigh in on your decision as well. Once the objectives are defined and everyone is on board with your goals it’s time to find your new dream home!
We would all love to live in our dream home – whether it is a condominium in downtown San Francisco with views of the Bay or a sprawling 5-acre ranch in Morgan Hill with view of the foothills and a vineyard. You may find exactly what you are looking for, or you may need to make compromises – so it helps to have a plan.
Start by making a list rating your priorities in order of importance. What are the “must have’s” and what can you “live without”. For instance, if it is a condo in the City, does it have to have a view of the Bay or can it just be in a nice neighborhood with filtered views? Perhaps a nice neighborhood close to services and within walking distance to the Bay is enough. Maybe you will decide that the view isn’t worth the expense and you can get a larger condo for the same price as the smaller one with a view. These are an example of the types of decisions you will need to make along the way.
After you make your list in order of priorities – start shopping. But where?
Part of your list may be divided into neighborhood(s), cities, or builders to consider. If you haven’t already decided exactly what neighborhood you want to live in, or whether you want a new home or a resale home, this can be sorted out fairly quickly. Spend a weekend visiting various neighborhoods. Visit resale open houses and talk to agents -- don’t commit to any, yet. Tour new home communities and talk to agents. Find out what each has to offer in terms of price, features and warranties.
There are distinct differences between new homes and resale homes. Resale homes are usually in established neighborhoods while new home neighborhoods are often starting from “scratch” but will become established before long. New homes also come with the builder’s warranty; resale homes don’t but you can buy an independent home warranty policy. The primary reason for purchasing a new home is the ability of the homebuyer to customize the home as it is being built to their own specifications – rather than having to compromise or replace carpets or countertops. And a new home is just that – all new!
Once you have determined the location and price priorities, it is time to determine what features you want. The home buying process should be fun and is much easier if you know what features you want and you have created a list. Make sure you are pre-qualified so you know how much you can spend (read Article 2 on Improving Your Chances for Qualifying and Staying Qualified ). Be realistic about how long it is going to take to find your home and close the sale. Make sure this timeframe works well with your and your family’s schedule. A finished home (new or resale) can close in as little as 30-days while a new home still under construction can take 4 to 6-months to complete from the time the foundation is started.
What should you look for in your new dream home: Look for character, “appeal”, and condition, especially roof and foundation for a resale home. Do the size and the bedrooms and the number of bathrooms meet your needs? What if the family grows – is there room for expansion? Is the yard large or small enough? How well does the floor plan work for you? Is there an easy flow and logic to the layout? Is there enough parking? Are the interior finishes acceptable - such as the appliances, counter tops, baths, paint, etc.?
If a new home is your focus, you will have a lot of choices. Most builders work with leading architectural firms who design the homes with several different floor plans and elevations (front facades) from which to select. While you will want to choose an elevation that appeals to you, it is worth considering the most popular elevation and floor plan among buyers in the neighborhood to date for resale purposes.
Should you have a broker? Aligning yourself with a resale agent (broker) benefits you primarily if you are shopping for a resale home to ensure that your home purchase includes all of the proper disclosures and inspections. The agent will also negotiate on your behalf with the sellers through their listing agent.
Most new homes today built by a subdivision builder have CC & R’s or Homeowner’s Associations and most have a public report. A home inspection report for a new home is not necessary. New homes come with a warranty, have met all local and state building code requirements and, best of all, have gone through a rigorous planning approval process and required inspections during the building process by local code enforcement officials.
Builders typically require direct communication with the homebuyer (unlike resale sellers). The builder’s representative becomes the direct liaison with the buyer; therefore, the broker is rarely involved after the contract is written. Keep in mind – most builders will not pay a broker referral fee or commission unless your broker referred you to the builder’s sales representative and/or registered you with the builder on the first visit. Be clear with the new home sales agent whether or not you are represented by a broker and be clear with your broker whether or not you want their representation. You are not obligated to have your broker represent you on your purchase with the homebuilder unless the builder prefers it.
<-Back to list of articles
|
