NEW HOME GUIDE-JohnKriza.com SERVING PA & DE

NEW HOME GUIDE!!! READ BELOW

10. Financing can make or break you.

Some builders, especially those in high-volume communities that place many mortgage loans, offer special financing packages. It is customary for the builder to tie upgrade incentives to an in-house mortgage company, so the builder may not offer those incentives unless the buyer is willing to use the in-house mortgage company. But using the builder's financing is not the only option in the highly competitive world of mortgage lending. You should shop everything, including interest rates, points, and lender fees.

9. Make sure the contract works for you.

Be certain that the agreement with the builder includes some safeguards for you, such as putting your deposit in escrow, itemizing your upgrades by description and cost, allowing you access to the site to check on construction progress, a weekly schedule op appointments to meet with the builder, and a 30 day advance notice of the closing date.

8. Negotiate with the builder.

Many buyers don't realize that there may be room for negotiating price, upgrades, or options. You may have the most possible room for negotiation if the builder has a completed but unsold home. Unless you are buying in a "sellers market", builders may offer discounts or special financing to help close a sale.

7. Choose your options carefully.

The higher the base price of the house, the more options and upgrades you can add without overpricing for the neighborhood. Make the most of builder incentives, typically free upgrades or credit off the purchase price. Upgrading means selecting quality above "builder standard" for carpet, floor coverings, detailing, appliances, and kitchen fixtures. Options are items that the builder installs while constructing the house. Options that add usable space, such as a sunroom or a computer room, add most to resale value. Remember that some improvements can be added later and sometimes for less money, such as a deck, finished basement, or landscaping.

6. Base Price vs. Standard Features

Every builder does not use the same products or pricing strategies when selling their homes. Some choose to keep the standard features very basic and thus keeping the starting price as low as possible. Other builders use some of the finest materials as standard features in their homes thus resulting in a higher base price. Make sure when comparing different homes or neighborhoods, carefully analyze each home's standard features. For example, Home A may be priced $20,000 higher than Home B, but Home B does not have a fireplace, a deck, nine foot ceilings or a stucco front. If you were to price those features out, they would cost more than $20,000 so Home A would actually be the better buy if you thought that you needed those features in your home. I am very good at comparing different homes and pricing and this is a critical step in the process of my involvement in your new home purchase.

5. Look under the hood.

Learn all you can about the community. Review the common amenities. Find out from local land use officials ( or me ) what else is planned or could be built in the area, especially where there's vacant land. Read the rules of the homeowner's association-or determine whether one will be set up-and investigate whether it has adequate reserves set aside to build or replace major amenities such as pools or major roads. Consider commuting routes and times.

4. Size of Yard vs. Open Space

In today's world of developing homes and neighborhoods, there typically are two ways to plan. The first is a traditional lay-out with usually larger lots. The second method utilizes smaller lot sizes in combination with an area designated as protected open space. This open space is typically taken care of by the homeowner's association or township. Having a smaller yard is not necessarily less desirable than a bigger yard, if that smaller yard backs up to open space. A homeowner can enjoy the open space, while not having to maintain it or pay taxes on it. So when deciding on a preferred lot size, think very carefully about which route is best suited for you.

3. Not all builders are created equal.

Some builders are known for their craftsmenship, while others are known for innovative use of space, below-market financing, or exceptional customer service during construction and after move-in. I can help you find the best home and builder for your needs.

2. Put experience on your side.

Remember that the sales agent in a model home represents the builder, not you. If you don't have a professional real estate agent working on your side, you are not being represented. I can help you understand new home construction, warranties, financing, and differences in price, quality, and lot selection to help you obtain the best value.

1. First, visit with your Real Estate Consultant

Before you step into a model home, know how much house you can afford. If you currently own a home, you will probably need to know the net proceeds from its sale to calculate how much cash you'll have available. I can analyze this to narrow down what that net proceed figure is likely to be. If you are a first-time buyer, you should seriously consider becoming pre-approved for a mortgage loan to nail down how much of a home you can afford and improve your bargaining position with any seller.

BEILER-CAMPBELL REALTORS