any factors need to be taken into consideration when deciding between a resale home and new construction.  Price, customization options, and location are just a few.  Not only can we help you determine which choice will best suit your needs and wants, but if you go with a new construction home we can help you keep track of the builder and your timeline, help with customization options by giving you insight into how they will affect resale value, as well as handle the negotiations.  However, there are both pros and cons to to buying a new construction home that you should educate yourself on before choosing a builder and jumping into the process.

ake some time and browse through the articles we have placed below that will help in your decision to buy a new construction home.  Also, be sure to visit our Buyers Resource area and Finance Information area for additional information and tools.  Once your ready to start building, email me or give me a call so we can get to work.

                



Why Should I use Carlisle Realty Group to Purchase a New Construction Home?

The advantages of working with us to help you with the purchase of a new construction home are the same as those for purchasing a resale home . . . knowledge of the market, help in finding the perfect home quickly, expertise in contract writing/negotiation, and closing assistance.  The builder has a professional representative watching out for his/her needs, and you need the same expert representation.  There are often small things that builders will try to add in to your costs in the contract that you should not have to pay for.  Also, you want to make sure you still have a inspection and receive a proper home warranty.

Buying a new construction home is a little more difficult and time-consuming than buying a resale.  I can professionally guide you through this process.  I have experience working with builders, have access to a database of information about subdivisions, floor plans, etc.  You need to have someone working for you who has a basic understanding of construction terms and concepts in order to judge the quality and viability of projects that are in the planning stages.  I will be able to help you look at plans, for example, and know whether the joists are too far apart or the plumbing hardware is substandard.

It is very important that your interests be professionally represented when you are entering into a contract for a semi-custom or build-to-suit home.  I will be able to tell you if the builder has had complaints filed against them or been the subject of lawsuits or investigations.  These transactions are complex and the contract details must be exact in order to protect you and to ensure you get exactly the home you want!

Is there any advantage to not using an agent to purchase a new home?
No.  There is no financial advantage for you to buy directly from the builder.  Builders have a "single-price" policy, meaning you will be charged the same price whether your interests are represented by an agent or not.  Just as in any resale, the seller pays the agent's fee.  Many buyers mistakenly think that they will get a better deal if they save the builder the cost of the agent's fee, but this just isn't true.  In fact, you will probably make out a little better if you have a knowledgeable representative working for you.

Take Note: Many builders requires that your real estate Agent accompany you on your FIRST visit to the Builder’s sales office, or they will NOT pay your representative’s fee!

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Existing Homes vs. New Construction (The Pros and Cons)

Locale: The oft-recited real estate mantra of "location, location, location" is still relevant.  Most older, established neighborhoods are in the town's center, which in the Ann Arbor and surrounding areas are wonderful, charming neighborhoods.  New subdivisions, and newer schools, are generally on the outskirts.  But the expense of a daily commute is one factor that many buyers forget to consider.

Price: Existing homes are usually less expensive per square foot, in part because of escalating land costs in new subdivisions.  But ownership costs are considered more predictable, almost inevitable, in a new home, especially considering the cost of a code upgrade or remodeling of a vintage home. Sometimes I can negotiate that the builder include closing costs as part of their price, although that will not always happen.  Price is another factor that is more readily negotiable for an existing home.   Also, a hidden cost in many new subdivisions is a homeowner's association, with mandatory fees and other assessments as well as architectural controls that may surface at remodeling or expansion time. Do your homework.

Move-in complications, advantages: The resale is sitting there waiting for occupancy.  But the wait for a new home can seem interminable, though you can check on quality control as it's being built.  If your finished house is among the first in a new subdivision, prepare to navigate through construction teams and precariously misplaced nails for months on end.  And don't forget that daytime hammer serenade.

Living space and design: Lower building costs of the past mean more home for the money for the buyer of a resale.  Resale basements may have been finished out nicely for additional living space.  On the other hand, new-construction homes often employ more efficient, innovative uses of square footage and property.  Also, newer "zero-lot-line" developments offer more living space per square foot than a same- size lot that surrounds a resale.  However, some existing homes have larger yards and don't have that "on top of eachother" feeling.

Customization: In a new house, you can pick your own color schemes, flooring, kitchen cabinets, appliances, custom wiring for TV's, computers, phones and speakers, etc., as well as have more upgrade options.  Modern features like media rooms, extra-large closets and extra-large bathrooms and tubs are also more attainable in ground-up construction.

Character: While many new homes are built in "contextual" style, which blends elements of the old and the new, it's still hard to emulate the character of a older home.  Hardwood floors, vaulted windows, high ceilings, built-in cabinetry and other design nuances express a certain individuality in older homes that's nearly impossible to copy.

Safety: Builders have to follow very strict guidelines in new-homes and additions.  In general, new homes are usually more fire-safe and better accommodating of new security and garage-door systems.  However, as we find in everything, some things just aren't built like they used to be.

Landscaping: Mature trees, robust shrubs, gardens, rose bushes and perennially well-watered lawns are some of the rewards of an older home, while most new homes have fewer trees, fewer walkways and sparse vegetation.  Landscaping is an expensive proposition today for the cost-conscious home builder.

Maintenance: The charm of an older home often goes hand in hand with increased maintenance, especially if the previous owner(s) were not vigilant in upkeep.  Building materials may be harder to replace or match in an expansion or remodeling.  New homes generally come with at least a one-year warranty for the repair of some problems that develop as it settles into its foundation.  But know what your warranty covers.  Many are elusively written.  Although, most resale homes also come with a one year warranty as well.

Taxes: Newer homes tend to spring up in less-developed, outlying municipalities, which may impose higher taxes on you because they're subsidizing fewer inhabitants than the central metropolitan area.  Your community will still need fire and police coverage, sidewalks, sewers and possibly a new school.  A more established home in a built-out area has a little more predictable tax structure.

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