THE NAGGING QUESTION - BUY A NEW OR EXISTING HOME?

 It goes without saying, but it is worth repeating, "Which is the best deal when buying a home - new or existing"?

The answer is not as easy as the question because it is in most cases a matter of personal preference.  But for the sake of argument, let's look at a few elements that may help resolve the issue for you.

Recent studies show that twice as many people prefer new homes over existing homes.  They prefer brand new properties or homes in pre-construction phase. 

Here are a few reasons why:

• Ability to have the builder customize the home before construction is complete.
• New homes come with today's design elements -walk-in closets, eat-in kitchens, and large master baths, etc.
• Less immediate maintenance or repairs.
• New construction materials offer more energy efficiency which translates into lower utility bills.
• New homes are often equipped with the latest technology built right in.

On the other hand, here are a few reasons for buying that existing home over new construction.

• Brand new homes can cost more - as much as 20% more than a similar existing home.
• Those fantastic amenities found in new homes can mean more expense than you intended to pay.
• New construction developments and neighborhoods may be far removed from destinations like schools, supermarkets, or other essentials services.
• Often new homes have less charm and architectural detail and do not offer the lovely, quaint tree-lined older neighborhood.
• New homes are often built on smaller lots than most older homes which translates into less space between you and your neighbor and little if any backyard.

The bottom line in this matter is determined by the lifestyle you are seeking.  You are not just buying a house; you are buying a home and a neighborhood.

BUYER'S PREFERENCES CHANGE

 

Buyers are changing their minds as to what is important to them in the next home they purchase.  

Key elements in the buyer's minds set:

1. Distance between neighbors:  The health guidelines established during the pandemic have reshaped buyer's idea of "how close I want to be to my neighbor."  City dwelling and tract homes with marginal distance between homes no longer is preferred, rather a longing for "plenty of room to swing a rope."  The suburbs are making a resurgence.

2. Proper Office Space: More and more employees have, over the past six months, had to carve office space out of bedroom, over size closets or even a storage shed to create usable office space. Buyers are attracted to homes that offer a designated office space or provide a loft area suitable to conducting business.  

3. Affordable interest rates: You cannot deny it that buyers are attracted to the affordable interest rates currently available.  As the interest rates drop buyers are willing to venture forth into the housing market to find bargains.  Although prices are increasing and the inventory of homes is flat, pending home sales are up 13% compared to a year earlier. 

4. Carpe Diem: Right now, there is a group of people who are highly motivated to buy.  They have the money and they have the desire, and they are not afraid of the competition.  

DON'T FORGET THESE ITEMS WHEN CALCULATING THE COST OF A NEW HOME.

 

If you are a first-time home buyer or someone who has not purchased a new home in fifteen years you need to remind yourself of these fees associated with purchasing your new home.   Here are five fees to keep in mind when calculating your budget.

1. Home Inspection: A crucial element in your negotiation, the home inspection alerts you to the necessary repairs that need to be undertaken.  You can use the home inspection report to negotiate a reduction in the sale price or obtain a credit for the repair cost.  On average, a home inspection can  range from $300-$500 depending on your location.

2. Title Services:  Title services encompass the transfer of the title from the seller and a thorough search of the property’s records to ensure to no one will pop up with a claim to the property. Additionally, you may need to buy title insurance which will protect the lender or your investment in the home.

3. Appraisal Fee:    Before getting a loan, you will likely be required to get an appraisal of the home to determine its estimated value. This will be conducted by a third-party company and the cost can land anywhere between $300 and $1,000, depending on the size of the home.

4. Home Owners Association Fee: If you are purchasing a home within a planned development you may find there is an addition fee for the HOA.  This fee varies from HOA to HOA both in cost and fee due date.  Before you purchase be sure to obtain copy of the HOA by-laws and fee schedule. 

5. Taxes: The taxes each buyer pays at the closing table differ, but it is not uncommon for it to be up to two months’ worth of county and city property taxes. Additionally, there may be taxes for the transfer of the home title.

Your realtor or attorney should prepare for you a closing cost sheet outlining all the expenses for closing and how much money you will need to bring with you to the closing table.  

  

FIRST-TIME HOME BUYER'S COURSE

Looking to buy your first home or did you previously buy a new home but had troubles the first time around.  Then you need to look into the First-Time Home Buyer's Course available through ehomeamerica.org.  The contents of the course were developed by the U. S. Department of Housing and Urban Development.

What you will learn:

1. How much home can you afford?  

2. What do you "need" in a home?

3. What mortgage loan products to consider?

4. How to comparison shop real estate agents and lenders?

5.How to improve your credit score?

There is a fee for the course and a certificate is issued upon completion of the program.  

"The class helps buyers avoid shoehorning themselves into homes that are beyond their reach," states Melinda Opperman, President of Credit.org.

"Participants who complete the course receive a HUD approved certificate that helps qualified buyers for grant and down payment assistance programs, dependent on their financial eligibility," according to Opperman.

The link below provides a list state-by-state for first-time buyer programs. 

 

https://www.nerdwallet.com/blog/mortgages/first-time-home-buyer-programs-by-state

NOTE: This blog does not endorse any of the service offered by companies cited in this blog.  They are provided for your information only as an available resource to help first-time buyers.

TIPS FOR CREATING THE IDEAL HOME OFFICE

The Covid-19 outbreak put new demands on "Home Sweet Home" as employees were being asked to work from home.  If you are one who is working from home and still are struggling to set up a great work space, take heart.  Countless numbers of workers have created office space where there once was none.  Everything from converting a spare bedroom to planting a desk and chair in the family greenhouse.  You are not alone in your quest for the ideal home office.  Below are some tips that can help you transform any space into your "Office Sweet Office".

1. Choose the right equipment

• Invest in a comfortable chair as you may be spending a good portion of your day in it.
• Buy a second monitor to make tasks easier and multi-tasking more productive.
• Keyboards and mice are crucial in improving productivity and making tasks more comfortable.
• Have you considered a standing desk?  Research shows that sitting for extended periods of time is bad for your health.  Although a standing desk offers no magical cure for health issues, you may find that it improves your productivity and enables you to better focus on the task at hand.
• Follow ergonomic rules and minimize sitting for long hours.  Good body mechanics goes a long way to enhance productivity.
• Spruce up your office space with a few green plants to reduce stress.  Pick plants that are easy to maintain and help improve air quality - Ficus and Boston ferns are known for their air filtering qualities.

2. Setting up your home office space

• Select a space according to your needs.  Will you be having clients come over to your office?  Do you need keep pets and kids away from your workspace?
• Get natural light, pure natural light, it makes you feel better. 
• Allow space for brainstorming - a couch or a  whiteboard - during the day.
• Good decor - family pictures - goes a long way to create a welcoming workspace.
• Clean regularly.  Goes without saying during covid -19.  Avoid clutter that creates distractions and wasted time.

These are a few tips to help you along the way as you create the home office space you always wanted.  

Do you have any tips or tricks to offer for maximizing productivity at your home office?  Share them with us below.