In the Collin County area, we have seen many home buyers purchasing new construction homes. Why is this happening? The first reason is that the inventory on resale homes remained low and building of new homes continued to be strong. Another reason was that interest rates went up and builders had the flexibility to offer “buy downs” which helped people get into new construction homes. However, inventory of resale homes has increased and now there are lots of options for home buyers to choose from. Another factor is that with the increased inventory of resale homes, home prices have moderated since the pandemic era.
Resale homes offer certain advantages that new construction homes don’t. Resale homes are in an established neighborhood that the buyer can evaluate before purchasing a home. Landscaping, trees, and up grades to these homes offer home buyers more reasons to consider a resale home for their next home purchase. Some resale homes offer things like pools, outdoor kitchens game rooms, media rooms, or other things that the homeowner has upgraded. Builders, in many cases, do not put these extras into their homes due to their costs.
Builders do offer incentives to buyers of their homes to get people to purchase them. Many builders may offer compensation to realtors to bring buyers to their homes. All of these costs are figured into the price of the home. Resale homes prices are governed by the prices homes that have sold for that specific market area. In other words, sellers of resale homes have to consider their prices based on what homes like theirs have been selling for over a certain period of time. All of these things are important to consider when making a choice to purchase either a new construction or a resale home.
The DeBerry Team of KW Legacy gives a “free” buyer consultation for those thinking of buying a home and will go over with the potential home buyer the things to consider when purchasing either a new construction or resale home. If you wish to set-up a consultation, contact us at 214-215-5106.
Posted by Roxanne DeBerry on
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