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The biggest mistake that new home buyers make is that they do not read the information that is available to them. There is tons of information available on the Internet, but buyers will not read this information in order to understand what the buying a new home is all about. The bottom line: Every thing boils down to "Buyer Beware"!!! Use a realtor to help you find and buy a home, and have the realtor find out if there have ever been problems with newly constructed homes. Having a realtor present when buying a home offers a security blanket. That is, realtors are knowledgeable with disclosures and home inspections as well as mortgage loans, rates and terms. Be very cautious, most builders have a mortgage company that they use and they will not accept a letter of pre-qualification from some other lender. They want the buyer to get a loan from their lender, often at a very high interest rate with a pre-payment penalty clause with mortgage terms that are not justified. Also, there are terms in the contract, which have to be amended such as when a problem occurs, who does what, how long will it take, when is it to be completed and who inspects the work and more importantly, when you can sell, normally two years. There are many more problems with newly constructed homes than existing homes. Questions that your realtor should ask:
New Homes in Alameda County New Home Buyer Advice Want more information? New vs. Existing Homes When evaluating a new home, you cannot just look at the home price to understand the total cost. For example, when you buy a new home you will most likely need to purchase trees, bushes, and other landscaping items. Window coverings, blinds and drapes also most likely will not come with the new home. Any upgrades you want are also not in the base price of the house such as granite counter tops, hardwood floors, crown molding, and 42” cabinets. Keep these extra costs in mind when planning to buy a new home. If you only have a limited amount of money, be sure to set aside a certain amount for these necessities and extras.
The great thing about a new home is that it should fairly maintenance free for the first five to ten years. Look for a builder that has a good reputation of building quality homes that have few problems. Also one that will fix problems promptly. Ask around and check with the better business bureau and chamber of commerce in the area you are considering buying in. When evaluating an existing home, you will want to know the age of certain things such as the roof, appliances and other major systems such as plumbing, heating and cooling.
From a well maintained older home that has lots of character to a good quality new home that needs little maintenance. |