Whether Buying Your First Home or Moving Up– Be Ready to Act Fast!
If you have been paying attention to the current housing markets, you know how hard it is to find the right house, and when you do, it seems like others have found it too. You are competing with multiple offers, and usually the seller will take the highest and best. There are a number of factors that create this type of market, but it boils down to basic economics: supply and demand. “Newly constructed homes have been able to meet the demand for buyers; however, that is quickly changing,” says Amber Wykstra, Sales and Marketing Manager for Aspire Homes. “We, like many builders, are selling out before our projects are even developed. We have also been faced with many price increases since November, and this continues to raise prices.” The key in any market is to be prepared. Here are three things you can do to be ready to “house pounce” and immediately execute a new construction contract.
1. Get fully pre-approved with a lender that understands construction financing. “We give our clients the opportunity to carry the construction loan,“ says Wykstra. “This allows them to take advantage of the equity when it’s time to close the long-term loan. Our preferred lenders know what we require and make sure our buyers are fully ready to perform.”
2. Do your homework. Take the time to visit model homes and get to know the people that sell these homes. Plans are usually owned by the builder and so knowing what is most functional for you helps narrow down an affordable choice. It is also important to ask what is included in the base price and what is not.
3. If you have a home to sell, be prepared to list it right away. Many buyers have equity tied up in their current home. You may need anywhere from 3% to 10% as a construction deposit with the builder, and having that cash free and ready to perform is critical to locking in your contract and price. “In this market, a newly constructed home will almost always appreciate faster than an existing one.
Being ready to lock down a price and lot because you have sold your existing home makes a difference financially, advises Wykstra. “I would take advantage of the lack of supply and get my home sold for the highest price.” Being ready and prepared to invest in real estate is a big decision, but there are many reputable builders and RealtorsTM that can help guide you.
Aspire Homes welcomes you to visit their model in West Haven at 3234 S. 3500 W.