Our current market is experiencing an uptick in home values
which is great news. The bad news is
that this market value increase is being caused by low inventory which means
more buyers are looking for homes than homes are available to them. This is causing most homes on the market to
receive multiple offers and most of those may be over the asking price. Most homes are receiving 10-20 offers each
with some offers coming in $50,000 or more over the asking price. I heard the other day that one home in the
$250,000 range received 52 offers!!! Another
trend we are experiencing is sellers realizing that they are in the driver’s
seat and asking buyers to completely remove any appraisal contingency, even if
the buyer is using financing to purchase the home.
Because of this fierce competition, many home buyers are
considering purchasing a brand new home if they can qualify for the increased
prices that come along with new construction.
There are more homes available and less competition in the new home communities,
but you can expect the prices to be 25-30% more for a comparable resale home in
many cases.
Many buyers don’t know that a real estate agent can assist
them with a new home purchase (if the builder has a co-op agreement). All buyers must take their agent with them on
their first visit to the community. It
is highly recommended that buyers have their own representation if
allowed. The builders sales agent’s
primary focus is the seller/builder.
Having a Realtor on your side allows you to ask questions and have
someone working only for you to make the process as smooth and understandable
as possible.
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| New home under construction |
Did you know that home builders have their own contract
which is different than the standard CAR contract used in a resale
purchase? If you have been writing
offers on resale homes in California, be prepared for a completely different
offer and verbiage when buying a new construction home.
Builder confidence is at its highest in years and many new
home communities are in the works. Seeno
is releasing new homes March 2nd in Fairfield and KB Homes has a new
community in Vacaville. Other
communities are currently open as well.
Call me to take a new home tour or talk more about new homes vs. resale
homes. Make the Wright move today!
(707) 410-6634
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