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• Many new homes are built with rentable basements. Many people rely
on this income to cover the larger mortgage payment, but being unable to
secure a tenant for a few months can be financially draining. In a development,
you will also pay a monthly association fee of about $50-$100 to
cover maintenance of common areas.
• New homes are purchased in move-in condition, with no need for expensive
renovations — which are not covered by the mortgage. You also will
typically have much more time before a new home begins to need costly
major repairs. Additionally, some systems, like the HVAC or roof, may be
under a builder’s warranty, further minimizing your risk.
• New construction is built with an eye towards the future. A good developer
will build a framework that will allow for future expansion and
customization down the line. The electric, HVAC, and other systems are
built with an understanding of contemporary needs.
Some buyers view short sales or foreclosures as an opportunity to snatch up
a great deal. However, these transactions are often complicated and end up
generating hidden costs and aggravation. Unless you are a seasoned investor,
many agents will advise against these purchases.
Negotiating a Price
When you finally find the house you want, you are ready to make your initial
offer. If you’re working with a real-estate agent, he will conduct the negotiations
on your behalf, but the principles are the same. While you obviously
want to secure the lowest price possible, you also need to be taken seriously
as a potential buyer to encourage the seller to work with you. Do your homework
well so that you can choose an appropriate starting point.
Ask your agent or review public records, available from the County Clerk’s office,
to learn about recent homes sales in the neighborhood. For how long were
they on the market? How much is the asking price? How much was the selling
price? Try to understand the seller’s position as much as you can: Does he have
any particular pressure factors that will push him to accept an offer more hastily?
Is he closing on another house or starting a job elsewhere very soon?
At the same time, do not offer any more information about yourself than is
strictly necessary. You want to be careful not to sound desperate for this particular
house; if you treat the process as a business transaction without getting
emotionally involved, you are less likely to be taken advantage of.
60 | 2017 Lakewood Home Buyer’s Guide