Read This BEFORE You Visit Your First Model Home! And, then call me at (602) 291-4362!

Although most homes for sale are resales, one out of four homebuyers purchase a new home.  Which is better?  Existing or new?  The right answer, of course is up to you.

Both resales and new homes offer advantages.  Existing homes are less expensive on average, generally closer in and enjoy established neighborhoods.  New homes offer innovative use of space, modern energy efficiency, and choices of options and upgrades.  What’s more, everything is new, even the neighbours.

The choice is yours.  Most of our clients consider both new and resale homes before they decide.  To help understand how new homes differ from resales, here are ten inside pointers you need to know before you visit your first model home.

10 Secrets Every New Homebuyer Should Know

1. First See Your Agent

Before you set foot in a model, know how much house you can afford.  If you own a home, you’ll first need to know the net proceeds from its sale to figure out how much cash you’ll have available.  Not a guesstimate, but a sharp-pencil analysis which includes every likely selling cost is critical.  If you’re a first-time buyer, you’ll need to pre-qualify your income to nail down how much home you can afford.

2. Put Experience On Your Side

Remember, the sales agent in a model home REPRESENTS THE BUILDER, not you.  If you don’t have a professional agent working on your side, you’re not represented.  We’d make it our business to understand new home construction, warranties, financing and differences in price, quality, even lot selection to help you get the best value.

In today’s environment it is critical to have an outside agent represent you! Will the builders agent review neighborhood price appreciation, the number of investors buying in their neighborhood or even future price reductions to sell more homes? Remember, most builders are publicly traded companies and will slash home prices in order to sell more home and meet Wall Street expectations.

Will you be upside down on your new home in six months? Do you think the builders agent will give you all of that analysis?

Download a copy of my $25,000 Home Buyer Savings Guarantee here and learn how Buyers Agency can protect you from the builders!

3. Not All Builders Are Created Equal

There are builders known for their craftmanship, others for innovative use of space, below-market financing, or customer attention during construction and after move-in.  but not all builders are created equal.  As both resale and new homes specialists, we can help you find the best home for you.

4. Get The Whole Story

Check out the reputation and financial strength of the builder.  Be sure to get “spec sheets” on the home features covering everything from floor plans to energy efficiency ratings and from immediate-delivery inventory to lot availability.

5. Look Under The Hood

Learn about the community.  Discover its amenities.  Find out from local land-use officials what else is planned or could be built in the area, especially where there’s vacant land.  Read the rules for the homeowner’s association (or determine whether one will be set up) and investigate whether one will be set up) and investigate whether it has reserves set aside to build or replace major amenities like pools or community roads.  Consider commuting routes and times.

6. Choose Your Options Carefully

The higher the base price of the house, the more upgrades and options you can add without overpricing for the neighborhood.  Make the most of builder incentives, typically free upgrades or credit off the sale price.  Upgrading means selecting quality above “builder standard” for carpet, floor coverings, detailing, appliances and kitchen fixtures.  Options are items the builder installs while constructing the house.  Options that add usable space like a sunroom or electronic/computer room add most to the resale value.  A fireplace, downstairs powder room or full bath and built-in storage are generally good values.  Remember, some improvements can be added later, sometimes for less money, like a deck, finished basement or landscaping.

7. Negotiate With the Builder

In today’s market, many buyers don’t realize there may be room for negotiating price, upgrades or options.  You have the most possible room if the builder has a completed but unsold home.  Unless it’s a “seller’s market”, builders may offer discounts or special financing to help close a sale.  For example, some “premium lots” are priced higher and sometimes saved for last.  But typically, all the lots cost the builder the same.  Ask about lot pricing.

8. Make Sure The Contract Works For You

A builders is contract is written to PROTECT THE BUILDER not YOU!  Be certain the agreement with the builder includes some safeguards for you, such as putting your deposit in escrow, itemizing your upgrades, allowing you access to the site to check on construction progress, and a 30-day advance notice of the closing date.  You can count on us to help you understand how new homes are built and the fine print of builder and manufacturer warranties.

9. Financing Can Make Or Break You

Some builders, especially high-volume communities that place lots of loans, offer special financing packages.  But using the builder’s financing is not your only choice.  Mortgage lending is highly competitive.  Everything should be shopped, from rates to points to lender fees and also appraisal, inspection, survey, attorney or closing fees.

Make sure you have all of the facts….Visit my blog for more information on buying, financing and credit!  Visit NOW

Learn how to avoid the most common tricks lenders use to “screw the public” watch my presentation here

10. New Doesn’t Mean Perfect

New home builders typically use modern materials that are durable, low maintenance, stronger, quieter, safer, even wired for the next century.  But new doesn’t mean perfect.  Consider hiring a home inspector.  Use what you learn to create a builder “punchlist” to fix major problems before closing or at least put aside money to fix them later.

Remember, almost half of all new homebuyers use a real estate agent to help them.  Those who go it alone may not realize there’s no cost to the buyer and builders are happy to cooperate with agents.

Download a copy of my $25,000 Home Buyer Savings Guarantee here and learn how Buyers Agency can protect you from the builders!

For an Arizona FHA, VA or USDA Home Loan, Apply Here

For additional information and an EXPERT Buyers Agent, call me at (602)m 291-4362

Here is a monthly snapshot on market and AZ foreclosure activity for Arizona Realtors and buyers:

AZ foreclosure activity continues to be very strong.

Download a graph of sales activity for the last 30 days

Southwest Valley-REO active listings represent 16% of the total listings, and 50% of the sales for the last month.

Peoria and Glendale-REO active listings represent 17% of the total listings, and 54% of the sales for the last month.

Compare to Scottsdale- REO active listing represent 6% of the total listings, 29% of the sales for the last month.

Just a couple of things to note:

1. 94% of sales for the last month are under 400,000.

2. 18% of sales for the last month are approved Short Sales

3. 50% of sales for the last month are REO properties.

The Valley is sitting at a 5 months supply overall. Here is a breakdown by area;

Ahwatukee 6.3 months

Scottsdale 9.2 months

Apache Junction 5.0 months

Camelback Corridor 7.5 months

Cave Creek 6.4 months

Fountain Hills 14.4 months

Goodyear, Litchfield, Avondale, 3.0 months

Luxury Valleywide 34.4  months

Peoria and Glendale 2.9 months

Paradise Valley 19.3 months

To receive a daily list of new foreclosure homes, visit this site!

To receive a daily list of homes by your specific search criteria, visit here!

To learn how to buy a home with $100 Down Payment, visit this site!

For more information, call my office at (602) 291-4362