In the past year and for 2013 the Real Estate market has given to consumers the best buying opportunities for a new construction home in a decade. Builders have been slow to recover the Real Estate crisis and their rate of building was in decline until last year, this decreasing supply will eventually cause prices to go up. When the market rebounds, and it already showed us in Miami and Broward County that demand likely will outpace supply, prices will be driven up so the time to buy is now.
Many buyers have since 2011 decided that now was the right time to buy real estate but an often overlooked consideration is whether to buy a new or an existing home.
At first look short sales or REO (Real Estate bank Owned) may seem to be where the best deals are. But new homes can actually provide the better value and a higher percentage of prices increase in a near future. A low inventory and a shortage of property updated to new standards have directed many outside of the state or International buyers toward project newly built or in first phase of development.
Second home or investors should consider new construction?
Tenants love being the first people to live in a new property and will often pay a premium. A higher rent price can be achieved and to my experience a shorter time to find a prospect versus an older building or house.
Peace of Mind
“Bargains” come with issues that need to be addressed and paid for, which can be daunting when you live thousands of miles away. New homes comes with a warranty and anything gets fixed in the 1st year.
Builders need to sale as fast they can to move to new projects. They use the prices on resales to adjust the value of their units. Even if they can get a premium for their product it can’t be too much or they won’t sell and then will have the burden of the carrying cost added to their building price.
It is much much easier for an investor (especially a foreign national) to get a US mortgage on new construction than to get one on a resale. Most of the time the builders have already worked finances that will put them readily accessible to buyers with descent deposit of good credit score.
We need each other
Never buy directly from the builder. Their sales rep do not represent you. They are the agent of the builder. Their job is to sell you that house and what you need is a good professional on your side to obtain either a better price or additional options that you never though you could get .
Remember that we are paid by the seller so you will have a free professional representation and will benefit of the experience of someone knowing the local market .
What you can expect when buying a new construction condo: