With real estate inventories at a 10 year low buyers find themselves constrained to a very limited selection of homes for sale. Most buyers can’t find exactly what they are looking for. In fact, the past few months have been very frustrating both for would-be home buyers and real estate agents alike.
This “homes for sale shortage” is not just a problem in Columbus. Many parts of the country are paralyzed by a lack of inventory. How would you feel about buying a home in San Francisco or Miami, where listings typically last a few days before a bidding war erupts among buyers.
Consequently, more and more would-be home buyers turn to developers to build a new home.
Building A Home
There are many benefits to having a new home built. Most importantly, you can choose the layout and options you really like. There’s a good chance your new home will be much closer to your dream than buying an existing house.
On the downside, you will have to wait between 4 and 6 months before your new residence is finished.
Will 2013 be a Good Year to Build a New Home?
If you ask most Columbus builders, they will tell you that new home construction is still at an all-time low in Columbus. Developers are eager to build new homes. They own vacant lots in many new subdivisions, but had a hard time attracting buyers during the housing crisis.
I am convinced that 2013 is the perfect time to get into a new home.
Builders offer free upgrades and excellent financing. Sometimes you may use work-equity to cover the down payment, so you can get into your new house with little or no cash out of your pocket.
Do Builders Work with Realtors?
Of course they do. Like any other home seller, builders want their product sold.
Builders understand that most buyers work with real estate agents.
There’s no cost to you, the home buyer, when you take a real estate agent to a builder. The builder will cover the commission.
Being represented by an experienced real estate agent has many benefits. It’s like having a trusted adviser on your side. A good Realtor could save you thousands of dollars on your purchase.
Six Reasons why you should take a Realtor to a Builder
- Your Realtor has experience dealing with builders. She knows what other builders are offering their customers, and which terms are commonly acceptable, if you have a new house built.
- Your Realtor is a trusted adviser on your side. Keep in mind that the developer’s goal is to sell their inventory for the most profit possible. The developer’s rep is a sales person representing the builder. You need a real estate agent on your side.
- Your Realtor can help you negotiate concessions from the builder. Just because a developer puts a price-tag on each option does not mean you have to pay for them. Your Realtor should be able to negotiate free upgrades and better contract terms.
- Your Realtor understands the resale value of each options. Some options your builder offers will add true value to your new home. Others are conveniences that are nice to have, but increase the market value of your new home when it comes to selling the property in the future.
- Your experienced Realtor knows the reputation of local builders. Some developers will offer you free upgrades galore and lure you into a contract with a low price. However, poor construction techniques and cheap materials may create serious maintenance problems in the future and destroy the resale value of your home.
- Have a Realtor on your side does not cost you anything – the builder pays all commissions!
Call me at (614) 975-9650, if you think about building a new home or buying a spec home from a builder. I will make sure you get the best deal, a quality home with many free upgrades at the best price possible!
Thanks for reading the susannenovak.com Blog!
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Real Estate Agent helping First Time Buyers.