Don’t Believe Everything You Hear From A Builder Sales Representative
I once learned of a couples costly mistake while at a listing appointment. Their beautiful home had been for sale more than a year with no offers. I mentioned several reasons as to why I believed the home had not sold. They explained that 6 years ago the sales lady for the builder offered them a ‘weekend only discount’ on the home. She also assured them home values would only increase since the builder was to develop the land directly behind the subdivision, but that didn’t happen. They got double ‘hooked’ by the sales person. The old run down trailer park hidden by a retaining wall and tall fence greatly impacted the value and even with the ‘weekend only discount’ they overpaid for the property. Their mistake cost them tens of thousands of dollars and could have been avoided by having free representation from a Buyer’s Agent.
Buyer’s Agents Protect Buyers from Making Mistakes
Buyer’s Agents specialize in protecting you from mistakes and protect your investment. While you are in the emotional state of envisioning living in this beautiful home and placement of your furniture, their role is to point out the negatives and positives of the home and its location, which directly affect future resale values. They utilize their knowledge and experience and provide you with a MLS detailed sale price analysis, unlike the generalized ‘cookie cutter’ analysis found on public sites.
It’s Hard to Compete With New Home Builders
If there is a possibility you’ll need to sell and relocate under the 5-year mark, buying a new home in a new home community can be a costly mistake. A homeowner can compete with other homeowners when selling but it’s hard competing with a builder. They can cost average, offer special financing or get more creative with perks to the Buyers. One exception is when a community is being ‘closed out’ and the Builder is no longer actively building homes in that location. Buyer’s usually can purchase the few remaining homes at a better price. Have a Buyer’s agent assess any current or future negatives as to why it hasn’t sold and provide you with a MLS detailed sale price analysis of the subdivision before you submit an offer.
Taxes on Improved Property and HOAs
The additional taxes for first time homeowners who didn’t budget properly has lead to financial trouble many times. Property taxes are recalculated based on land and improvements and increase the following year. Another expense are Home Owner Association (HOA) dues can also increase and are quite expensive, so buy under your budget. Also be aware of the condition of the HOA’s grounds, structures, etc. HOA repairs are usually financed through homeowner special assessments. HOA dues are in addition to your principle, interest, taxes and insurance (PITI).
New Housing Developments Can Bring Unexpected Changes
The beautiful view of the lake across the street, the wide open spaces, or a greenbelt behind you with no traffic noise… can likely change. This has happened to so many homebuyers in a new builder development. Before you purchase, know the potentially negative changes in the city’s long range master plan for future highways, development and zoning regulations.