6 Tips for Buying a New Construction Home

How is buying a new construction home different than buying a resale home? I’ll go over six important points today. Looking to buy in the Greater Houston Area?  Get a full MLS accessLooking to Sell in the Greater Houston Area?  Get a free home market analysis There are a few things that every homebuyer needs to know about new construction. I’ll go over six of them today. New homes may not be listed in your local MLS. Unlike regular sellers who list their homes with local real estate agents, home builders often have their own sales employees working for them on the side. They do this to have more control and cut costs. New homes are often sold before they’re built. The builder will generally get financing lined up, map out the construction and sales process, and try to sell you as many homes as possible before they even start building the one you decide on. The first buyers may get the best discounts. Early in the sales process, there may be room to negotiate the sales price down. With that reward comes a potential risk; by being an early buyer, you are committed to the project. Builders don’t have a personal connection with the home. It’s just a numbers game for them. They are not focused on what’s good for you. They are focused on the spreadsheet rather than sentiment. They want to make sure that you can qualify for the loan, and they set prices based on inventory. You may be able to get some free upgrades instead of reducing the price. Discounts may be available in the form of upgrades. If you’re nearing the end of the sale cycle and the main homes have already been sold, the builder may be willing to negotiate on upgrades. If they reduce the price of your home and the sale closes, then the sale price becomes public record. If they offer you an upgrade package, such as swapping carpet for hardwood floors, there’s no way to track that in the public record. Builders do like working with Realtors. Believe it or not, it’s in their best interest for a professional Realtor to be working with you. Remember, the salesperson represents the builder. They are looking out for the builder, whereas I will look out for you. If you don’t already have a Realtor to help you when looking at new construction homes, or if you have any other questions, make sure to give me a call or send me an email. I would be happy to help you!  Contact Us Written by Ruby Miranda on September 23, 2018. Posted in Buy A Home, Buyer Tips, First Time Home Buyers, New Construction Tags: Buy Your Home, Buyer Tips, Financing A Home, First Time Buyer, New Construction Trackback from your site. Leave a Reply

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How to Deal With Multiple Offers as a Buyer

How can you compete in multiple offer situations? Here are a few of our top tips. Looking to buy in the Greater Houston Area?  Get a full MLS accessLooking to Sell in the Greater Houston Area?  Get a free home market analysis   Today we’re going to talk about being a buyer in a multiple offer situation. Unless you really play your cards right, this place could easily slip through your fingers. That’s why it’s critical to put the best offer forward from the start. Here are a few tips for how to win:   1. More money. It’s that simple. Money talks. The sale price isn’t the only place where you can make a strong financial stance. Consider increasing your escrow deposit or option fee. Committing more money up front will show sellers that you’re serious. If you’re hesitant at offering full price, how would you feel if you lost out on this home by $1? 2. Write a letter. Beyond the basic agreement of sales paperwork, include a letter explaining why you’re so passionate about buying the home. It can definitely help you stand out from the crowd. Telling the seller about you, your family, and why you love the home might help build empathy with the seller. Letters are especially effective when a seller has an emotional connection to the property. “Consider increasing your escrow deposit or option fee.” 3. Keeping financing clean. Where financing is concerned, buying with cash is always attractive to sellers when you can afford it. You don’t have to deal with a lender, appraiser, or anything else. However, cash isn’t an option for everyone. If a mortgage is a must, make sure you can provide a pre-approval so that sellers know you’re vetted by a lender. 4. Buying a home as-is. Agreeing to buy a home “as-is” releases the sellers from the responsibility of making any repairs. That’s why it’s a very attractive option for them. Keep in mind that buying a home as-is doesn’t mean you have to forgo inspections entirely, but you’ll only be able to use them for informational purposes. 5. Have your agent make a call. Their job is to make sure your interests are communicated to the seller throughout the negotiation process. When you’re competing against multiple offers, knowing what the seller wants to see can be a big advantage.  That’s all I have for today. If you have any questions for me about multiple offers or anything else, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon. Contact Us   Written by Ruby Miranda on September 23, 2018. Posted in Buy A Home, Buyer Tips, Financing A Home, First Time Home BuyersTags: Buy Your Home, Buyer Tips, Financing A Home, First Time Buyer Trackback from your site. Leave a Reply

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What Actually Happens During an Appraisal?

What Actually Happens During an Appraisal?   Looking to buy in the Greater Houston Area?  Get a full MLS accessLooking to Sell in the Greater Houston Area?  Get a free home market analysis We are here to answer the commonly asked question: “What is an appraisal and why is it important?” An appraisal is when a mortgage lender sends someone out to a property to determine its value.  “An appraiser will look for any major defects.” When it’s time to order an appraisal on a home you purchase, a third party will come out to the home so they can determine what homes are selling for in the area and how your property matches up. They will physically look at the exterior and interior of the home and note any major defects. An appraisal will mostly look for major defects though, they aren’t going to get into the details as much as a home inspector would.  As a buyer, when the appraiser goes out there, there are going to determine if the home you made an offer on is worth more, less, or the same as you paid for it. If the appraisal is the same as what you paid, or it comes in higher, you’re clear and free. If the appraisal comes in under what you’re paying, you will have to re-negotiate with the seller. You can stay firm at your price and force them to cover the difference, you can come down in price, or you can negotiate somewhere in the middle. There are a lot of options. If you have any questions for me, give me a call or send me an email. I would love to hear from you. Contact Us   Written by Ruby Miranda on September 23, 2018. Posted in Buyer Tips, Home Appraisals, Home Loan Process, Seller TipsTags: Buy Your Home, Home Appraisals, Ruby Miranda, Sell Your Home Trackback from your site. Leave a Reply

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