To Buy or Rent
To Buy or Rent
Have you ever heard someone say, “I am not ready to buy, just yet.”? Well, the next time you do hear those words, turn around and say, “There isn’t a better time to buy, than right now!”
Some people have this idea that if they wait, they can save up enough money for their down payment. Now let’s consider this strategy. Arizona’s real estate market is growing so quickly. Right now there are not enough homes on the market to go around. What is this market doing to the value of Arizona properties? The answer is Appreciation.
The Arizona Republic newspaper reported in 2004 that the average Arizona home rose 26%. This is the average. Some areas around the city and state appreciated much more than 26%. If a home price is $200,000 and it appreciated 26% that would be an appreciation value of $52,000. Now in one year, do you think that an extra $10,000 down payment saved makes much of a difference when you lost $42,000 in lost appreciation and had to pay one year’s worth of rent?
The Phoenix area including the 27 surrounding cities are growing fast. The time to buy is now. Rates are at a record low and qualifying for 100% financing has gotten much easier. In a few years, the average person will not be able to purchase homes because homes will be too expensive and rates are expected to rise.
Buying vs. Renting
There is no better time than the present to buy a home. Even in today, during a booming Arizona real estate market, buying a property has many more benefits than renting.
Why not buy?
There are many reasons people do not purchase a home. One main reason is that they are waiting. Waiting for a time when the real estate market improves, making it easier for buyers to get into a home. Waiting for the time when they have saved up enough money for a down payment. Deciding to put a hold on moving forward into a home is not always the best decision.
If you are one of those individuals who is renting and waiting to save up for a down payment, you should wait no more. In the year that it might take you to save $10,000 more for a down payment, you will lose money in property appreciation.
As a matter of fact, if you look again at the above scenario with a home priced at $200,000 and an appreciation of 26% which equals out to an increase of $52,000. You would have lost $42,000 as you waited and saved the extra $10,000 for your down payment. In addition, you would have spent more money renting for a year, instead of investing in a home with increased appreciation.
The Valley of the Sun includes 27 surrounding cities and area is growing quickly. The time to buy is now. Find out today how you can qualify for a home. It is easier that you think. Buy now! In a few years, the average person will not be able to purchase a home because prices will have risen too high. Get into a home today!
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The builder’s agent can provide you with critical details that you will need to decide which of the new homes for sale near me to buy. These details can include:
- Specifics about the homes’ construction
- Amenities in the home and the size and style of the floor plans
- Details like demographics and amenities in the neighborhood
- More about the atmosphere of the housing community
As beneficial as the information is that the builder’s agent can provide you with is, you must remember that he or she serves and represents the builder or seller of the new homes for sale.
Hiring an Experienced Realtor
As you consider the variety of new houses for sale on the market, you may find that you need an experienced Realtor to assist you in selecting and negotiating on the best one for your family, lifestyle and budget. In fact, this real estate agent can provide critical assistance with a number of tasks that will ensure that you get a dream home that you can live in and be happy with and will also fit in the budget that you can afford to pay for it.
For instance, you can hire a Realtor to negotiate extras into the sale of the newly constructed home that you are interested in buying. If you want the counters or appliances to be upgraded, you can ask that your Realtor to negotiate on these details before you make an offer or close on the house.
Likewise, your Realtor can renegotiate details like the paint color used in the inside or outside of the house or what style of door to use on the garage. He or she can press for these details to be changed to your satisfaction before proceeding any further with the sale.
You can also rely on your knowledgeable Realtor to advise you on what kind of financing to use to buy the new home. The builder’s agent may press you to use a specific financier, typically one with which he or she has a close connection or from which he or she might receive a commission by recommending. However, your Realtor can research this recommended financier, advise you whether or not to use it, and recommend using another that might be more suited to your financial situation and budget.
Likewise, your Realtor can protect your best interests when it comes to having the new home inspected. The builder’s agent may want you to forgo this inspection for the sake of selling the house quickly. He or she may advocate for forgoing the inspection simply so the builder and seller can get money from the closing and sale of the home immediately.
However, your Realtor represents your best interests and wants you to get the best home for your money. He or she can make sure that the home gets inspected closely. You will know what, if any, defects exist in the new construction. You will also know how many issues need to be addressed and what kinds of repairs are needed to make the home worth the asking price.
Your Realtor can use the results of the inspection to push the seller to make the repairs before you close on the home. He or she can also use the inspection details to negotiate down a lower price, particularly if you agree to make the repairs yourself.
When you want to protect your own best interests while looking for and negotiating on new homes that have just been built, you need to hire and register your own real estate agent before you meet with the builder’s agent. Your agent can work directly with the builder’s agent, spare you from having to pay expensive commissions, and ensure that the transaction is geared toward your best interests.
You end up buying a newly built home that suits your budget, family size, and overall lifestyle. Your Realtor ensures that you are not defrauded or taken advantage of during the sale and knows full well what kind of home that you are buying. He or she makes sure you get the best new home investment for your dollar.
Proactive Steps to Take Now
Once you realize the perks of buying and owning a new construction home, you may be ready to start the process of finding one for you and your family quickly. To get the proverbial ball rolling, you can take meaningful steps now by:
- Exploring the current mortgage and interest rates
- Getting pre-qualified and/or pre-approved for a mortgage so you know what you can afford
- Use online resources like mortgage calculators to determine your down payment and budget
You should also speak with and hire an experienced agent like Carl Chapman REALTOR at West USA Realty to tell you more about the process of buying new construction homes. He can explain in detail what to expect, help you find new houses for sale, and represent you throughout the process of making an offer and closing on your ideal newly built home.