Nancy Hill
Solution Partners NW
NancyHill@Windermere.com www.BestKingCountyRealEstate.com 253-653-6323
New Construction vs. Resale - What the Buyer needs to know!
Posted on June 27, 2009
If you are beginning to search for a home, consider new construction before resale. The big difference in this market is that the seller (typically a builder) of new construction has inventory that they NEED to keep moving. Money is needed to generate more construction!
Builders have more ability to provide buyers with concessions. They have vendor partnerships that allow them price breaks on materials. So, for example, you may want to upgrade the carpet and add a fence. A typical homeowner may not have the ability to do those things for a potential buyer whereas a builder has those vendor partnerships and the builder would have the incentive to add those items at a minimal cost to them which secures a contract with you!
Builders typically are working with a preferred lender. Sometimes, these preferred lenders have loan programs or extended rate locks that you would not typically have with an outside lender who is not the builders affiliated or preferred lender. These partnerships can be a bonus to the buyer. The process is more streamlined and a successful close is more likely as the lender understands the builders specific processes and timelines.
Some new construction builders have a great deal of inventory on their hands. Consider the possibility of owning a brand new home - no paint scratches, no wood floor dings, no crumbs in the kitchen drawers from the previous owners....get the brand new home smell for a price that may be considered the better cost per square foot.
Enjoy the hunt...
Builders have more ability to provide buyers with concessions. They have vendor partnerships that allow them price breaks on materials. So, for example, you may want to upgrade the carpet and add a fence. A typical homeowner may not have the ability to do those things for a potential buyer whereas a builder has those vendor partnerships and the builder would have the incentive to add those items at a minimal cost to them which secures a contract with you!
Builders typically are working with a preferred lender. Sometimes, these preferred lenders have loan programs or extended rate locks that you would not typically have with an outside lender who is not the builders affiliated or preferred lender. These partnerships can be a bonus to the buyer. The process is more streamlined and a successful close is more likely as the lender understands the builders specific processes and timelines.
Some new construction builders have a great deal of inventory on their hands. Consider the possibility of owning a brand new home - no paint scratches, no wood floor dings, no crumbs in the kitchen drawers from the previous owners....get the brand new home smell for a price that may be considered the better cost per square foot.
Enjoy the hunt...
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