When buying a house, most of the buyers are in a dilemma. Should they buy a newly built house or one that is up for resale? Buying a house is probably the biggest investment people make in their lives. As a buyer’s representative, this is the first question that agents need to answer for their clients. Other questions may arise like, whether a newly constructed home a fit for them? Do they need a home that is designed according to their needs and which has a lot to offer in terms of design? Or is it a resale home that may need renovations, better for the buyer? These are essential boundary line questions which challenge many home buyers in the early stages of process. Their answers are likely to depend on their lifestyle choices, financial status, priorities, desires, budget and their competence when it’s the matter of improvements and repairs.
To help your client with these dilemmas, you should present them with the advantages and disadvantages of the both type of housings and help them determine which one suits their needs.
Pros and Cons of Newly Constructed Houses:
New houses tend to have contemporary styling, a key element in modern living. New construction affords some flexibility in design during the construction phase, so your clients may alter the design features according to their personal needs. For example, instead of having three bedrooms, they may opt to have two bedrooms and a large living room. As they are newly constructed, the houses don’t require further expenditure on maintenance. Newly built houses have new and energy efficient appliances that are more affordable to operate as well as have extended guarantee, well-integrated neighborhoods, consistent layouts and common areas all of which add more to the home.
The cookie-cutter approach to design is possibly a con of a newly constructed house. Some of the newly built houses have the same design throughout a community or a complex and may lack originality. New homes require a lot of capital investment in their construction and therefore, the room for price negotiations can be limited in comparison to resale homes. They may also have home owner’s association fees attached to them and new neighborhoods frequently lack the charm of more established residential areas.
Certainly, one home buyer’s pro may be another’s con. Luckily, you can determine that whether the home your client is opting to buy is truly the home they need through several ways.
1. Check the builder’s history. What are the company’s previous projects? What buildings did they construct? Were their past projects successful in terms of completion time, budget and relationship between the builder and purchasers? Make sure to check the reputation of the builder whether his previous work was remarkable or not, whether he fulfilled the commitments he made in the contract or not.
2. Tell your client that they have to “picture the right home” and not the “dream home”. Your client can surely have the granite countertops, surround-sound home theater and jetted tub they saw in the model home, but tell them that they’re not included in the base price. They have to pay extra for them.
3. Finally, make your client consider the insubstantiality. The houses with same style attract the buyers with same minds and most of the establishments are built keeping families in mind. Relying completely on the client’s opinion, the constancy, orthodoxy and the very idea of their children having fun on streets may become a blessing or a curse for your clients.
The Pros and Cons of Resale Homes
While purchasing a resale home there are more available options for you to choose among the wide range of styles of your choice and they allow for an edge on the price negotiation process. Another positive element of a resale home is that known issues are covered and addressed in revelation documents because of previous occupants. It also has an established neighborhood, and that could be considered more charming to clients.
With resale homes there is more maintenance, more wear and tear and things may crack or fray easily. Resale homes are older and may have been built in an era when the wirings were more energy-intensive, so they are costlier to operate. The design may be outdated, they may have older home equipments and utilities, and there could be some unexpected expenses. Your client may also have to compromise on the amenities because resale homes don’t provide much of them often.
Against all odds, you can make your client battle their fear of buying a resale home by using certain ways:
1. Inspect the home for your client beforehand. Your client would prefer not to buy a home with a cracked foundation or a shabby roof and you don’t want to lose your client. So, to make a win-win situation for yourself and your client examine the house yourself first.
2. Negotiate for another offer. If after inspecting the house you find out the repairable defects, ask your seller to either get them fixed or lessen the sale price.
3. Prepare your client to foresee the unforeseen. Pipe leakage, electricity work get outworn with time so they have to be mentally prepared for this.
4. To avoid any problems that may arise later, stay honest with your clients. Let’s say you inspect a home and find flaws and renovation is to be done, you tell your clients straightforwardly that either they need to do it themselves or may need to call for professionals.
To make a long story short, assist your client in finding a house they like, help them consider the disadvantages in addition to advantages and advise them about the compromises they may need to make. Using logical approach in buying process is directly related to the pleasure they’ll have in living in the house.