New Construction vs Resale? Pros and Cons
Dreaming is a powerful force and turning your dream into a goal you can achieve is a powerful step towards making your new home desires a reality. With the right planning, your dream home can become more than a fantasy which exists on your Pinterest boards, but a dream come true.
Here are some steps to accomplish your goal of homeownership and get your piece of the California Dream!
Step 1 — Determine Your Buying Power
Talk to a mortgage lender to find out what you can afford! ToppSellers can offer you referrals to great lenders to learn about your personal situation and assist you with mortgage options that fit your needs. They will help you understand your credit score and financial situation, go over mortgage and down payment options, and determine how much house you can afford based on your household income and existing bills. Low down payment finance options are available for qualified buyers, and some of our Lenders are the Builder Lenders at major banks and the specialty lenders as Lender Reps. Please note, the following:
A) You must and will need to pre-qualify with the Builder’s In-House lender.
B) ToppSellers advises that you co-apply aka double apply (or even triple apply) with other Outside Lenders to give you the best financing options.
Step 2 — Location, Location, Location
Most people don’t plan to live in a beautiful prison so researching the location for your new home is a must! Whether you wish to be in a specific school district, near family and friends, your job, the beach/coastal communities, or warmer inland temperatures, downtown attractions and entertainment, or all of the above, location plays an important part in the purchase of your dream home. After all, the convenience of being near what’s most important to you can have a large influence on your quality of life. Would you want to live in a rural, urban, or suburban area? The location you desire will absolutely affect the price of the home and the property value of the home as well. Other things to keep in mind when thinking of a location are the commute to work, proximity to grocery stores and shopping plazas, and crime stats in the surrounding area.
Step 3 — Decide on New or Resale
When buying a home, much like buying a car, you have two main choices — new or used. Some people like resale homes because they are in older, established neighborhoods with towering trees with view homesites, and often near urban city-centers. The landscape is complete, and many have very sizeable yards that come with swimming pools or hot tubs! On the con side, resale homes must be tested for termites, roofing, plumbing, and possibly electrical, foundation and/or mold problems. With renovations to tear out old flooring, wallpaper, cabinets, and countertops, and install the colors and features you’ve been dreaming of, buying resale can end up costing you the same or more money overall.
New homes are desirable for many because they are built to the latest California building codes for structural stability, energy efficiency and your health and safety. They feature modern designs and open-concept layouts, and have that intoxicating “new car” feel, along with the knowledge that everything is brand-new, with no wear and tear or hidden damage. Cons to buying new homes, are the lot sizes. The real estate (Land) in California is so high, that our new homes tend to be built with 10’ between homes, and smaller rear yards. Builders are adding more stories, (many homes today are 3 story) and are not set on expansive lots, so you will not find many “affordable” (under $1MM) single level homes. When you build your new home in San Diego, you will probably can select the colors and features to personalize your new home to your style and needs, (depending on the stage of the build) and you should be able to customize with upgraded flooring to make it yours. Most new homes come fully loaded with quality design and features. Builders have professional designers at their design studios to offer their assistance helping you to navigate included and upgrade design options to personalize your new home to match your dream style, colors, needs and budget. Upgraded options can increase your property value in the future, without adding much to your overall mortgage payment.
Many communities in San Diego have Clubhouses, that include swimming pools for your enjoyment, included as part of your HOA Fees. New homes include a full one-year bumper to bumper, builder warranty, plus separate one-year (some are longer) Appliance Warranties, and of course, in California, the 10 year Builder Statute, for your peace of mind.
Step 4 — Find Your Home
ToppSellers are ready to show you neighborhoods throughout San Diego County to help you find the perfect Resale or New home you’ve been dreaming of.
Call us at ToppSellers because we have the experience and can guide you through the process.
Having worked in both New Construction Sales, as well as Residential Resale, we feel that we are the best to help you make the best buying decision based on your wish list. Feel free to phone us for a complimentary, no-obligation call, to answer your questions about all things real estate!
www.ToppSellers.com joan@toppsellers.com
858-442-4580, Joan Topp-Ek, GRI Broker/Owner/CA DRE# 01247910
