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Debunking Common Misconceptions About New Homes
Are you skipping over newly built homes in your quest for the perfect place? You could be falling victim to outdated myths that may be holding you back from a fantastic opportunity. Let's tackle some of the most common misconceptions to help you make an informed decision about buying a new construction home.
Myth 1: New Homes Are Always More Expensive
It’s a common belief that newly built homes come with a hefty price tag, but this isn’t necessarily the case. Data from the Census Bureau and the National Association of Realtors reveals that the median price of a newly constructed house is currently lower than that of existing homes. As Heather Long, Chief Economist at Navy Federal Credit Union, explains, this trend stems from two primary reasons: new homes are generally smaller than their predecessors, and builders are increasingly slashing prices to attract buyers. So, if you’ve eliminated new constructions from your home search due to perceived costs, it’s time to reconsider. Connect with a local real estate agent who can provide insights on available options within your budget.
Myth 2: Builders Won’t Negotiate
Do you believe that builders are rigid in their pricing? Think again! Many builders are eager to move their finished inventory. Mark Fleming, Chief Economist at First American, points out that because builders are not living in these homes, they face ongoing costs and are motivated to sell. In fact, many builders are willing to offer incentives, particularly with mortgage rate buy downs. Recent data from Zonda indicates that about 75% of new home communities provided incentives for quick move-in homes just last June. This opens the door for prospective buyers to negotiate more favorably than they would expect!
Myth 3: Craftsmen Today Are No Match for Yesteryear
Certain buyers believe that homes built today lack the craftsmanship of older constructions. However, the truth is that the quality of a home can greatly vary, regardless of its age. The key is to identify reputable builders. The National Association of Home Builders (NAHB) suggests that prospective buyers reach out to previous customers of a builder to assess their satisfaction. A good builder should be happy to provide references. Asking questions like whether their expectations were met and if they would choose the same builder again can provide valuable insights. Also, consulting your real estate agent about the builder's past performance can be beneficial; agents often possess knowledge of the builders active in your area.
Myth 4: You Don’t Need Your Own Real Estate Agent
One of the biggest misbeliefs is thinking that hiring your own real estate agent is unnecessary when purchasing a new home. On the contrary, having an agent on your side becomes even more critical with a builder’s specific contracts and requirements. Their expertise can guide you through the fine print and safeguard your interests.
As you enter the housing market to find your dream home, remember that knowledge is power. Don't let outdated myths keep you from exploring the possibilities of new constructions. Having the right support and accurate information can transform your home buying experience.
Call to Action: Ready to take the plunge into new construction? Talk to a trusted local real estate agent today and explore the exciting opportunities waiting for you!
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