The Pros and Cons of Buying a New Home

Which type of home purchase is best, new or resale? It depends on what you’re looking for, but here are the pros and cons of each.

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If you’re thinking about buying a home, you may be having a tough time deciding between buying an existing home or buying/building a new one. Of course, your budget is always the big player in this, but for the sake of the argument, let’s say you have the ability to do either.

Some of the pros of buying an existing home include the fact that you already know what the home looks like, what the neighborhood looks like, as well as what you can and can’t change about the home. If you want to know exactly what you're getting going in, this is a good option.

However, there are some disadvantages to buying a home on the resale market. These include higher utility costs because of less efficient appliances. There will be additional maintenance costs from time to time as well that you probably wouldn’t see in a brand new home.

Give me a call or send me an email to get your pie reserved.

As far as brand new homes are concerned, the advantages are numerous. You are able to customize the home to your liking. You can make it more spacious, add certain features, and benefit from brand new energy-efficient appliances as well. However, all those upgrades can send the price through the roof. Another thing to know is that in Eugene, all of the prime building sites were taken years ago. If you build a new home around here, it will have to be on the outskirts of the city. Also, with the recent devastation in California, Texas, and Florida, it’s inevitable that building costs are going to rise—just another thing to keep in mind.

I wanted to quickly mention one more thing. If you’re a client of mine, don’t forget that our annual pie day is coming up on November 20th. Give me a call or send me an email to get your pie reserved.

If you have any other questions in the meantime about buying a home or anything else about real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

All Your Real Estate Questions Answered

Today I want to take the opportunity to answer some questions I’ve been asked recently about our market.

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Here are some important questions I’ve been getting asked recently about our market and my answers to them.

“Is this still a seller’s market?”

Yes, it is. We’ve only got about two months of inventory and as long as that number stays under six months, we’ll remain in a seller’s market.

“What does the current housing inventory look like?”

Like I said, we currently have two months of inventory, and I don’t see a big change coming in the future. We’ve been at two months of inventory for the last two months, and before that we were as low as 1.6 months. Inventory may creep up as far as three months, but it should stay how it is for a while.

“How does the current inventory affect home values?”

We all know the real answer—as long as we’re in a seller’s market, the price of homes will rise. As I’ve mentioned before, home prices have risen 10% in the past 12 months, and they’re expected to continue at that pace.

We expect home prices to continue rising for the next several years.

“What can we expect from interest rates?”

That’s the good news for both buyers and sellers, because we expect them to stay fairly steady for the next 12 months. It might rise slightly but it won’t do any sharp increases. This will help make homes more affordable for buyers and help sellers have quicker sales.

“Is there a chance we could see a collapse in our market like in 2007 and 2008?”

According to experts, we have more controls and safeguards that will prevent a market collapse from happening. On the contrary, we expect home prices to continue rising for the next several years. As a seller, that’s good news. As a buyer, the sooner you make a purchase, the better off you’ll be.

If you have any more questions you’d like me to answer or you’re thinking of buying or selling a home in our market, don’t hesitate to give me a call or send me an email. I’d love to help you.

These Missed Details Could Give You Buyer’s Remorse

Buying a home can be exciting, but don’t get ahead of yourself and forget to look into details. Here are some that you should consider before buying.

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Sometimes when we get anxious to buy a home, we overlook a few things that are kind of important.

For my first example, suppose you’ve visited a home during the day when you could see it in full light. But have you been by the home at all hours of the day and night? Noise levels change throughout the day. If at all possible, visit the home at different times of the day to be sure that you will enjoy living there.

Second, think about your daily commute. From an outsider’s perspective, it might not seem that far to go to work. Maybe it’s only 10 or 20 miles, but when you own the home and realize that it’s 10 or 20 miles every day, both ways, you may see things differently. This may not be a problem for some, but it is something to think about.

Third, check over your CC&Rs (covenants, conditions, and restrictions) carefully. Some people will bring their RVs to the new property, only to discover they were unable to park. Little things like that can become a real downside if you haven’t checked the CC&R thoroughly.

If at all possible, visit the home at different times of day to be sure that you will enjoy living there.

As a fourth example, you should always think about your bedroom-to-bathroom ratio. Is this home one that you’ll be able to grow in? In other words, are children in your future? If so, and you don’t have enough bathroom space to fit your family’s needs, you’ll quickly outgrow your home. And of course, the best way to gain equity is to stay in your home for six to seven years, so moving early could affect your position there.

You should also think about features that can’t be changed without major remodeling. It may not seem as important when you walk through the house for the first few times to put an offer in, but it likely will down the line.

The final point would be to consider the resale value of your home. Is the home in an area that will be attractive to prospective buyers down the road, or will it possibly become an area with several rental houses on the same block? There, the resale value wouldn’t go up as fast.

I hope this helps. Remember, buying a home is a great investment, and I strongly encourage it. It sure beats renting! Take care, and I’ll be back next week.