As a buyer, it is a tough choice. New construction in South Forsyth and North Gwinnett are ramping up at an amazing pace. All of the “PVC farms” that were left in the wake of the crash a few years ago are either already holding homes, or on the way to it. Builders are pushing crews, and they still have a hard time holding standing inventory.
Interest rates are incredible. Prices are affordable.
But inventory is problematic.
What is a buyer to do? A couple of years ago, there were likely scores of homes that met your basic requirements. Looking at 4 car garage homes, in Gwinnett, just a couple of years ago there were probably 30 at any given time between $200k and $400k. Today there are just a handful.
First… if you are serious, don’t make the mistake of waiting if you really like the house. If it is reasonably priced, it WILL sell and it won’t take long.
But each of these segments has pros and cons.
New Homes…
They have that new home smell… and a warranty… and since you likely aren’t buying standing inventory, you can specify finishes and colors and floorplans. That rocks. But, you WILL pay for every one of those upgrades. Even if the builder is offering “$25,000 in free upgrades”, they ARE built into the cost of the home.
That doesn’t mean it won’t be worth it. It might be the best option. It is easy. Make your selections and let it happen. Of course, the drawback is that you aren’t in control. You have to wait until it is done. That could be a few weeks or a few months. And builder contracts are often stacked so that you can’t push on them if they fail to meet deadlines. Some aren’t… but many are. There might also be other hidden gems in the contract that prevent you from getting exactly what you want. Most of the time it works out, but there is that small percentage where the buyer gets bit.
Resales…
What you buy is what you get… And that is also a knife that cuts both ways. On one hand, it is pretty obvious what you are getting. You can walk around the actual floor plan, with the “options” already in place. You can see the colors in their natural habitat and feel the finishes. And there might be more room to negotiate with an individual seller vs a builder. The builder doesn’t want to cut the price on YOUR home because that will show up in the public records… compromising his future negotiating position for that community.
However, you CAN get a warranty. It won’t be a 15 year structure warranty, but for under $500, you can get a good warranty for the first year of ownership. And you are probably saving some cash compared to buying the new home. Don’t forget, if the home is in a subdivision that is built out, you know EXACTLY what you are getting as far as the neighborhood goes.
The Purchase Contracts are generally better, too. If you are working with a REALTOR®, they should be using state “association contracts”. I use the contracts generated by the Georgia Association of REALTORS®. Non-member licensees don’t have access to those contracts unless they pay a licensing fee. And the non-member contracts are just not on the same standard. The exception to this is Foreclosures… they generally have an amendment that kills most of the protections in the base contract. In exchange, you should be getting a better deal on the property for that risk…
Recent Renovations…
These are kind of a mix between the other two… In many ways, they have the best of both worlds, except that there are going to be fewer variable to adjust. Walls probably aren’t moving even if the work hasn’t been started yet, and if it is “done” then it might as well be a resale… you probably won’t be getting the finishes changed.
But, while most of what you see and touch will be new or refinished, the price will often be less than a comparable new home. You can still get the 1 year warranty. The builder doing the conversion MAY stand behind the work they have done. Appliances and systems MAY also have longer warranties as well.
And Finally…
Buying a house ready for a renovation isn’t a bad idea, either. If there isn’t a home that suits YOUR needs, buying one that is ready for a work-over, and then arranging that, may be a great plan. If there IS a house that meets your needs, it will probably be a better plan, but often, that just isn’t the reality… especially now with the decreased inventories on the market.
If you are in the Atlanta area and would like to know more, give me a shout. If you are outside of the Atlanta area, I still might know a good local agent that could help you out with their local expertise.
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