Do You Really Need a Realtor to Buy New Construction?

I hear this question often, “Do I really need a Realtor if I’m buying new construction?” The short answer, ABSOLUTELY! You are likely making the largest purchase of your life, why wouldn’t you want someone in your corner, to represent you, especially when it doesn’t cost you anything!

When buying new construction many buyers believe it is a good idea to use the builder’s representative when building a new home rather than a licensed real estate agent because it will save them money.  This is 100% FALSE!  It costs the buyer absolutely NOTHING to be represented by a Realtor.  When a buyer chooses to work solely with the builder’s representative you are working with someone who represents the builder and their best interest, not you! They are representing the builder and without an agent, no one is truly representing you.

A buyer’s agent can help guide you when it comes time to select upgrades that will give you the most bang for your buck. Once in the design center you can easily spend thousands of dollars on upgrades that will not necessarily be of value when it comes time to sell. It can also be easy to over upgrade your new home and run the risk of the home not appraising at the final sales price. Your buyer’s agent has the market knowledge to help you choose upgrades that will provide you the biggest return on your investment.

A buyer’s agent can also negotiate for you on things like lot premiums and appliances. I recently negotiated with a builder on my client’s behalf and saved them $4,500 on a lot premium.  By knowing what questions to ask and having experience working with many different builders a real estate agent can potentially save you thousands of dollars.

Having a professional working for you and representing your best interest can save you money, time and unnecessary headache.

The Joy of Owning Your Home

If you haven’t bought a home yet, you’re missing out on a wonderful feeling! That moment when you walk through your doors, throw your purse or keys on the floor, plop down on your couch and breathe a sigh of relief while thinking, “Finally, it’s ours (or mine)!” And the joy of looking at all of your boxes, getting to roll your eyes about why you buy so much stuff, then giving yourself a moment to take a nap because you worked hard to get here and earned it! Yes, that’s a real feeling! We often hear, and read, about the cost effectiveness of home ownership. The equity build-up, the freedom it can give us from finances in our retirement years, and a plethora of other ways owning a home can be a positive impact on your bottom dollar. But we don’t often hear about the emotional impact owning a home can have. Yes there will be days the fridge is acting silly and you need to call your home warranty, or days you have to get outside to mow your own yard, but nothing beats the pride and joy of owning a home.

 

There is a sense of security, and a sense of “this is mine and I worked my way up to this moment,” that provides moments of bliss. The ability to do with your home as you please, not pay a pretty penny for every member of your fur family, and the privacy it provides can’t be beat.

Home ownership also gives you the ability to put down some roots. And we mean that figuratively and literally. You get to build memories through the holidays and go through many milestones with your family, that leave a significant impact into the later years. You also get to build bonds with your neighbors, and grow in a community oriented neighborhood. With rentals, people come and go annually, but there are deeper roots planted with building relationships with those living next to you. Potlucks, 4th of July and New Year’s Eve spent lighting fireworks, and just the excitement of getting to know each other and build new relationships.

Buying a home isn’t about the dollars and cents for everyone, sometimes it’s just about the joy of owning your own place, and getting to build amazing memories in it. If you’ve been longing for this, get in touch with me, and let’s make it happen. You owe it to yourself to make your dreams come true!

Why Rent If You Can Buy

Home ownership rates are the lowest they have been in the last 50 years. Yet a large portion of Americans are still renting properties, instead of enjoying a home of their own. Consumer reports believe this is an issue because of a buyer’s lack of trust in their ability to purchase. It is still a long standing notion that a buyer needs 20% towards the cost of the home in order to move forward, but this isn’t true. With countless down payment assistant programs, and closing cost roll-ins, a home owner could move in with as little as a few hundred to a couple thousand dollars. Which is a huge difference in the time it takes to save up to make the move.

With interest rates at an all time low, home ownership in today’s market is a great investment. The money saved over a mortgage’s lifespan can result in tens of thousands of dollars, if not hundreds. That’s more money in your pocket today. Don’t wait to buy when interest rates soar again. With low interest rates, that means your monthly mortgage payments are at a significantly lower cost, as well. With such a heated housing marketing, rental prices are soaring, and statistics are constantly showing that home ownership can be equivalent to your rental rate each month, if not less. Why get stuck in a small 2 bedroom apartment, if you can move into a home a pay a monthly rate that is the same, and get a 3 bedroom house with a great backyard?

There is also a fear that a home can keep you “stuck” or “rooted” to one place, without an easy transition out if you decide to move. Although the future of the housing market isn’t easily predictable from location to location, you can always discuss with your agent about buying a home in an area that has a strong turn-over rate when a home hits the market. The equity build up when it comes time to sell is going to be far more beneficial, than if you put money into a rental and decide to move. The money from selling the property can be used to purchase a new home. With renting, there would be no additional funds to transition into a new place.

 

Now imagine if you were renting a home for $2000/month. If your landlord is renting to make a profit, think how much less you’d be paying on a monthly basis towards your mortgage, if the home was yours. Then you wouldn’t be paying a landlord to profit off of you, you’d be paying a reasonable rate, and get to call the property your own. Discuss with your agent and lender the steps you need to take towards home ownership, you might be happily surprised about the type of home you can afford to move into.