New Construction or Resale Home?

Home buyers are out looking again, despite the news reports we have been hearing, there are buyers! I have received many calls from clients who are contemplating new construction or a resale home. In my St George Utah real estate market, buyers have an advantage with plenty to choose from, no matter what you want to buy. Builders have record number of homes available and the St George MLS reflects an unusually high number of listings. The high inventory coupled with lowering interest rates is making for a great buyer opportunity.

New construction is always appealing. To own a home that no one else has lived in, a blank canvass to create a home that can be yours, and the fact that everything is new, is desirable to most buyers. However, something to consider is that blank canvass can ultimately become an expensive masterpiece. With new construction, you must consider the costs of landscape (sod, trees etc…), window coverings, patios or patio covers, concrete work, and possibly block walls or fences. This is not to say that you should avoid new construction, it is only expenses that are occasionally overlooked. Selecting a home with a reputable builder who is familiar with environmental issues within the region is imperative. With all of the lending issues currently present, homeowners that are having problems also includes home BUILDERS in financial problems. A home builder can bypass construction requirements in an attempt to make the home appear complete in order to place it for sale. Possibly they are risking foreclosure on the home and rushing to get the home sold could potentially provide profit. A home inspector is a necessity even for new construction. It will be possible that the home inspector can uncover potential problems, however if you are dealing with a builder who will essentially vanish after closing, upon moving in you may uncover severe structural issues or incompleteness. This is why you must to your due diligence and select a home builder with a local reputation.

On a pre owned home usually the former owner has already incurred the costs for window coverings, landscape and other items mentioned above. Having already done the changes and still offering a lower sale price will allow the buyer to save the money and aggravation of doing it after closing. A preexisting home within an established community may provide the evidence of structural integrity within the neighborhood, as any problems may be obvious if the home has had time to settle. A home warranty from a reputable company is recommended. A home warranty can cover the homeowner for future problems, such as electrical, plumbing, appliances, and even the garage door opener. The home warranty company will repair or replace covered appliances or home issues, for a small deductible. This will give the homeowner peace of mind for home repairs. This will be comparable to the home warranty the builder will offer on the new construction. However, keep in mind; if the builder disappears it may become impossible to have your warranty honored.

Always research any home, new or pre-owned. Never make a purchase without utilizing the services of a qualified home inspector. You can learn more about Selection a Home Inspector by following this link. Use a Buyers Agent to represent you in any transaction, preferably a REALTOR. And remember the rule of thumb…if it sounds to good to be true, it is.

What should YOU expect from a "Buyers Agent"

Considering purchasing real estate? With the power of the Internet, buyers have a lot of power to search, and research property listed for sale. Many buyers feel that will all of the 'power' at their finger tips, they really do not need an Agent to represent them. Some buyers refuse representation, of course it is all about preference, however I would like to share what a Buyers Agent can do, and most important, SHOULD DO for you.

If you have decided to enlist the help of a Real Estate Agent to assist you with your purchase, ask if the "Agent" is a "Realtor". Although the term "Real Estate Agent" and "Realtor" are often used interchangeably, they are not necessarily the same. Only real estate licensees who are members of the National Association of Realtors® are properly called 'REALTORS'®. Realtors are expected to subscribe to a strict code of ethics and they are expected to maintain a higher level of knowledge for the process of buying and selling real estate.

When you contact an agent, to initiate your home search, it is likely they will ask you to sign a "Buyer Broker Agreement". This is a contractual agreement between you and the agent for a specific period of time. This contract will define what is expected between you and your agent. Signing this contract means you are asking the Realtor to represent YOU. If you do not want to commit to any one agent, then do not be surprised if you can not get any one agent to commit to YOU. Agents work very hard for their clients, the contract will essentially allow them to get paid for their work. The usual circumstance is that the sellers will pay the agent (as part of their listing agreement), not the buyer (however in rare circumstances you can be liable to pay, always read your contract carefully). If you are not going to offer a commitment to the agent, it is of little incentive for the agent to want to drive you around for days or weeks, only for you to call another agent when you are ready to purchase. Remember, if you sign the contract and you feel the agent is not holding up their end of the contract you can discuss this with the broker. It is possible that the agent or brokerage can release you from the contract, you can ask if this is possible even before you sign.

Once you commit to an agent, allow the agent to WORK for you. They should be aware of exactly what you are looking for. Do not be afraid to tell your agent if you dislike a property they have chosen to show you. It is important to express your feelings, tell them what you like and dislike in every home you see, this will assist them in filtering properties. This will ultimately save you time. Once you have found the property, and you are ready to make an offer...your agent will again be working for you.

The agent will begin pulling comparable sales and researching the statistics. Agents have the ability to see what other properties actually sold for, and can often be privileged to sale specifics. Depending on current market conditions, a strong negotiator can often return unbelievable results for you. Once your offer is accepted, your agent will assist you during your evaluation and inspections of the property. Your agent will keep on top of your time lines and keep you informed during the escrow process. At closing, your agent will be there for you to make sure all of the paperwork is in order and assist with explaining the documents you will be signing.

Your agent will be your "personal assistant"

After closing, your agent will be sure you have the keys to your new home. Remember, once you have moved in, you can always contact your agent if you have Home Warranty questions or other issues. Your agent should keep in contact with you, and it can be the start of a continuing friendship and partnership.

Paula Smith is a Realtor in St. George, Utah. I specialize in residential property for St George, Santa Clara, Ivins, SunRiver, Washington, Hurricane, and LaVerkin Utah. If you would like information about the services that I provide, contact me today. Visit my St George Utah Real Estate website to learn about me or to search the St George Utah MLS for all property listed for sale in Southern Utah.