New Construction Buying Tips

Are you looking to buy a new home? Here are some things you should know before you start the process.

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If you’ve been out there looking for a home lately, you already know how competitive the market is. There are few homes for sale right now due to the strong demand and low interest rates we are continuing to see. You may be tempted to walk into a home builder’s sale center, but it’s important to know that the agent you meet there is representing the buyer, not you. They won’t tell you about any construction defects or problems with the neighborhood because it’s not in the builder’s best interest. This is where a great buyer’s agent comes in. They know all the different developments, different builders, and which ones are good or bad. They can help you find the right development, too. It’s important to work with an agent who represents your interests, not the interests of the builders.

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A buyer’s agent can assist you greatly.

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One of our lender partners offers a program that will allow you to lock in your interest rate now and look for a new construction home for up to a year. We all know rates are going up this year, so why not reach out to us and lock in your rate now if you plan on buying anyway? If you have any questions for us or are in search of a new home, give us a call or send us an email. We would be glad to help in any way possible.

How Can Our Programs Help You Buy a Home?

If you are looking to buy a home, don’t let a low FICO score or lack of a down payment stop you. I’ll go over a few programs that can help you qualify for a loan.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Value Report

It’s very possible you’re thinking about jumping into our real estate market in 2017. If you’re looking to buy, There are some programs that will help you with a down payment to get you into a new home. Most people dream of owning their own home, but some feel that if they don’t have the right credit score or a big enough down payment, they won’t qualify. However, if you want to purchase a home, there are many programs available to you to help you do so. Right now, our lenders have a program they are offering that would let you purchase a home with a FICO score as low as 580. They also have a financing program that wouldn’t require you to put any money down.

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You don’t need a huge down payment to purchase a home.

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Additionally, if you are a public school teacher that teaches any grade K-12, you can get 100% financing and up to $15,000 to cover closing costs. There are credit and income requirements associated with these programs, so if you have any questions about your ability to qualify for a home, please give me a call or shoot me an email. I look forward to getting you in touch with one of our lenders!

Individual Real Estate Agents vs. Real Estate Teams

There are many benefits to working with a real estate team over an individual agent. I will go over the top three benefits today.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Value Report

There are many benefits to working with a real estate team versus an individual agent. I would like to share a few of those benefits with you today.

First of all, you get specialization. For example, if you are looking to buy a home, we have agents that only work with buyers. When they wake up in the morning, all they do is search for homes for you. They look at traditional sources, like the MLS, and also look into pocket listings that may not be available to you online. Buyer’s agents will also canvass neighborhoods that you’re interested in to find sellers that might not have listed yet.

We also have agents that specialize in listings. Listing agents wake up and work hard to sell your home. They optimize your home for search engines, make sure you get professional photographs of your home, and work with buyer’s agents to negotiate the best terms for you.

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Real estate teams provide specialization.

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The second benefit of working with a team is time. Everybody needs a day off now and then. If you work with an individual agent who takes the day off, you are adding time to your home search or home sale. By working with a team, if your agent takes the day off, someone else will be available to help you. That way, you get more one-on-one time to help you find the right home or sell your current one.

Finally, real estate teams have more resources. Our team has a dedicated marketing division that works with buyers and sellers full time. We also have a transaction coordinator and listing coordinator; they work to keep you informed throughout your transaction. The transaction coordinator and listing coordinator also create a more efficient real estate transaction.

If you have any other questions about working with a real estate team, give us a call or send us an email. My team and I would be happy to help you!

3 Major Mistakes Buyers Make

Buyers keep making the same mistakes over and over. Here are three things you should avoid doing if you’re in the market to buy a home.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Value Report

Buyers tend to all make the same major mistakes when going through the home buying process. Here are the three biggest mistakes they make and how you can avoid making them yourself.

1. Refusing to confide in a trusted advisor. An agent is similar to an attorney in this transaction. They are representing you and acting on your behalf and in your best interest. They have a fiduciary obligation to you but many times, buyers withhold information from them because they are fearful of how they will be perceived, they believe they have all the answers, and they don’t believe the buyer’s agent is important. We often see buyers jumping around to work with different agents when looking at different properties, but we think it’s a better idea to find one agent you trust from the beginning and stick with them.

2. Altering their financial picture. Going out and making a big purchase before the close of escrow is a huge mistake. When you go out and purchase appliances or furniture on credit, it alters your debt-to-income ratio and could affect your FICO score as well. This could cause you to miss out on the home. Wait until the home closes to make these kinds of purchases.
3. Buying the wrong home. A lot of buyers don’t take the time to make a list of the things that are most important to them in a home. These could be things like the home’s proximity to your daycare or office, or what the neighborhood is like. It’s important to make that list beforehand so you can share it with your buyer’s agent and they can do their due diligence in ensuring the home you’re buying is everything you want it to be.

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I hope this answers some of your questions.

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I hope this answers some of your questions about buying a home. If you have any questions, give us a call or send us an email. We look forward to hearing from you.

Why Do You Need an Agent When Buying a New Construction Home?

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Value Report

Why do you need to use an agent when purchasing a new construction home?

The first advantage is that we can be your resource. We have all the new home developments in the area, and we can be your resource center to help get right price range in the home that you’re looking for. This will save you the trouble of driving around the neighborhood a few hundred times.

We want to be your partner who walks hand-in-hand with you through the entire process and be able to answer any questions you may have. Many times, for instance, buyers don’t understand the details of special assessments and the Mello-Roos tax. In Southern California, the property tax rate typically runs from 1.1% to 1.2%. However, in some of the newly-constructed developments, we’ve seen tax rates as high as 2% of your purchase price.

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We can be your resource center.

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In addition, there are private transfer fees to consider. Sometimes a builder will contractually stipulate that if you sell the home in the future, you’ll have to pay as much as .5% on the resale.

These are many questions buyers simply don’t understand or don’t think to ask during a new construction home purchase. Then they end up signing an agreement that they also don’t fully understand. Let us be your partner in this process and make sure this doesn’t happen, whether you’re buying a new or existing home.

If you have any more questions, please give me a call or send me an email. I’d love to talk with you.