Whether to buy an existing home or have one built is yet another decision to make during the home-buying process. If you decide to go with new construction, as your agent I will be a powerful advocate in your corner as you negotiate upgrades, a move-in date and other terms with the home builder. A buyer's agent fee is typically built into the price of these homes so there is no reason not to have your interests represented!
Below are some basic pointers to prepare you for the journey ahead.
Selecting a builder
Shopping for a large production or custom home builder can be a daunting task. Start by defining what architectural styles appeal to you and then seek out the builders in your area who offer those styles. Due diligence is essential. Ask friends for referrals to get firsthand accounts; verify the builder's state license status, if applicable; and check whether they're certified by the National Association of Home Builders. Don't worry, I can help!
The builder representative and your real estate agent
A builder representative's ultimate goal is to sell you a home. His or her role is to provide a wide range of information to help you in your decision-making, from building restrictions, roads and easements to inspections, warranties, rebates and upgrades. A real estate agent knowledgeable in new-home construction will be able to help you wade through all the data and point out the downsides and upsides of each line item. Your agent also can look out for your interests in reviewing the builder's contract, which often contains more legal jargon than consumer-friendly language.
It's all about timing
Market conditions greatly dictate a builder's incentive to make a deal you cannot refuse. When a builder has inventory on his hands, his carrying costs start adding up. When this happens, a builder might be more amenable to strike a favorable deal, whether it's throwing in upgrades or taking a bit off the asking price. A real estate agent can help you know when market conditions are right for these benefits. Also, watch for builder close-out sales. Builders promote these special events when a new subdivision is near completion but empty inventory still remains.
A word about paying up
While there are always exceptions, most builders require a deposit when a purchase agreement is signed. They also require that the buyer pay for any upgrades prior to closing. If you back out prior to closing, unless the agreement states otherwise, you will lose that money. Make sure you understand every detail in the builder's contract before signing it.
Increasing Your Home's Appeal
When you are preparing your home for sale, remember the 60-second rule: That's all the time you have to create a winning first impression.
Here are some simple to significant ways to maximize your home's appeal:
Exterior
- Keep the grass cut and remove all yard clutter.
- Weed and apply fresh mulch to flower beds.
- Apply fresh paint to wooden fences.
- Tighten and clean all door handles.
- Clean windows inside and out.
- Powerwash home's exterior.
- Ensure all gutters and downspouts are firmly attached and functioning.
- Paint the front door.
- Buy a new welcome mat.
- Place potted flowers near the front door.
Interior
- Evaluate the furniture in each room and remove anything that interrupts "the flow" or makes the room appear smaller. Consider renting a storage unit to move items off-site.
- Clean and organize cabinets, closets and bookshelves.
- Clean all light fixtures and ceiling fans.
- Shampoo carpets.
- Remove excessive wall hangings and knick-knacks.
- Repair all plumbing leaks, including faucets and drain traps.
- Make minor repairs (torn screens, sticking doors, cracked caulking).
- Clean or paint walls and ceilings.
- Replace worn cabinet and door knobs.
- Fix or replace discolored grout.
- Replace broken tiles.
- Replace worn countertops.
Special details for showings
- Turn on all the lights.
- Open all drapes and shutters in the daytime.
- Keep pets secured outdoors.
- Buy new towels for bathrooms.
- Buy new bedding for bedrooms.
- Replace old lamps or lampshades.
- Play quiet background music.
- Light the fireplace or clean out the ashes and light a candelabrum.
- Infuse home with a comforting scent, such as apple spice or vanilla.
- Set the dining room table for a fancy dinner party.
- Vacate the property while it is being shown.
- ** For an extra touch, bake some treats in the oven the morning of the kitchen is warm, smells good and people think of themselves cooking and eating in "their new" kitchen.
Create Your Home Wish List
Before the home search begins, I want to know as much as possible about the features and amenities you desire. To help me serve you, analyze what you want and what you need in a home's features and amenities.
Features:
- Age: Do you prefer historic properties, newer or a new build?
- Type: Single Family, Condo?
- Style: Do you have a special preference for ranches, cape cods, or another style of construction?
- Bedrooms: How many?
- Bathrooms: How many? Are they updated?
- Living and Dining Areas: A traditional, formal layout, or a more open, contemporary plan?
- Stories: How many?
- Square feet: How much space?
- Kitchen: How big? Recently updated? How important on a scale of 1-10?
- Storage: Big closets, a shed, an extra-large garage?
- Parking: A garage or carport? Room for how many cars?
- Extras: Attic or basement?
Amenities:
- Office
- Play/exercise room
- Security system
- Sprinkler system
- Workshop/Studio
- In-law suite
- Fireplace
- Pool
- Hot tub
- Sidewalk
- Wooded lot
- Patio, deck, or porch
- Laundry room
Make a pinterest board for you home inspiration so I will get a visual for your style and taste! Check out mine here: www.pinterest.com/ColumbestHomes
This Month in Real Estate October 2015
For a quick snapshot on what is going on in the market check out the video below! To find out how it affects you feel free to contact me to discuss your options at pfjohnson@kw.com
How to Price to Sell and Still Make a Profit
The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. Your real estate agent's knowledge of the overall market and what's selling - or not selling - will be invaluable in helping you determine the price. The objective is to find a price that the market will bear, but won't leave money on the table.
Here are some points to consider:
Time. Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a price that will encourage buyer activity.
Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. It's important that you not confuse value with cost - in other words, how much you value your home versus what buyers are willing to pay for it. Don't place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants the same type of flooring, color of cabinet, style of home.
Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Also, avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.
