In the first week of April, we will see how the home building business in the Austin area has fared so far this year. Nationally, the numbers are tracked monthly. In February, the number of new home starts rebounded strongly enough to surprise many analysts.
Even without concrete local data, some builders say they are seeing a much improved trend here, especially compared to last fall.
"Those were some struggling days," says Dow Wright, of Buffington Capital Holdings, as he stands outside a home in Southwest Austin that was recently built by Buffington Signature Homes.
A few blocks away, Anne Marie Naboa and her family are seriously considering a new Lennar home.
"I think everybody that I talk to says if you are going to invest in a property, do it now, it's a good time to buy," she exclaims.
That attitude may be catching on across the country. Housing starts, which were expected to drop in February, instead soared by 22 percent.
"I think it's the interest rates. You're not going to see rates this low forever," says Wright, referring to historically low mortgage rates that are available right now, considering buyers can find a lender that is willing to loan the cash right now.
Despite all the talk of a credit freeze, Wright says deals are being cemented at a rate greater than his company expected, "Our traffic is up, our sales are up."
And with more inventory moving, workers, who had been absent from the jobsite, are back again. In fact, in some places right now, new home buyers looking for a quiet neighborhood to move into might have a little trouble...because of all the new construction activity.
The big question is whether the upward trend will continue. Some analysts warn that going forward, the new home market will still be plagued with uncertainty, especially in certain parts of the country.
Top 8 Reasons Why You You Should Consider Representation by a Full Time Realtor
When Making a New Home Purchase
Although 97% of homebuyers utilize the services of a Realtor when purchasing a resale, they don't realize that a Realtor is even more important when purchasing a new home. A market knowledgeable Realtor representing you is critical to achieving your goals in the purchase of your dream home. Consider the following:
1. Lot size and location: The lot you select will determine a significant amount of the home's future value. Your choice should not be based on what the builder needs to sell but what gives you the best return on your investment and meets your individual needs.
2. Get clarity on upfront, non-refundable expenses: When entering into a new home transaction with a non-represented consumer builders often do not explain what expenses are upfront and/or nonrefundable.
► Let us assist you in the process before you sign anything and make sure all of the costs, upfront, nonrefundable and long-term, are clearly communicated and understood by all parties.
3. Get a Home Price Evaluation before you sign: Builders do not generally know how the market treats its product in resale. Once you purchase the home, it is your investment.
► Let us give you a Home Price Evaluation on the property based on how it would compete in the market today. This will tell you if the lot, floor plan, and your selections will most likely retain value in relation to the current market.
4. Get the best loan for your needs: Builders often offer monetary incentives to work with their mortgage company and this may not be in your best interest.
► Let's compare the builder's incentive with the actual mortgage product as well as other products available on the market that are competitive. You may pay more in mortgage closing fees than the actual builder incentive is worth.
5. Watch for those appraised values: A builder often gets his mortgage company to qualify you based on the assessed value of the unimproved property. When the property gets reassessed with the improvements of a home, the increase in taxes can place a tremendous financial strain on a budget based on a lower tax assessment.
► Let us review property taxes in the neighborhood that have been reassessed with improvements and make sure you are comfortable with the house payment based on the future tax. In this way, you know your future obligations before you purchase.
6. The home is new, why should it be inspected? The Texas Association of Realtors found in a study that 45% of defects found were present when the home was purchased new. Your builder should stand behind warranties and guarantees, however, making needed improvements/corrections to the construction after you live in the home or addressing code/repair items after your closing may be costly, inconvenient or at the very least, complicated.
► Let's get a qualified inspector to give you a professional opinion of current condition and potential future problems. Often, this can result in making a builder bring the home up to a code that although not currently required may become an issue in case of future annexation. It will either be the builder's cost or your future cost and you are the one I represent.
7. Market Knowledge:In addition to the immediate value of the home, there are other important facets to purchasing that should be considered. When you work with us, disclaimers and disclosures endemic to the area/subdivision, addenda regarding homeowner's associations, recent information regarding the surrounding community, the local schools, and utility districts, will all be presented and evaluated.
► Allow us to guide you through the myriad of local market conditions so you can be an informed homeowner and make the most of your homeownership experience.
8. Do you need to sell your current home in order to purchase new? Clearly, the builder has an interest in the selling of your current home. You should personally select the REALTOR who will be representing you and be wary of builder recommendations, which may come with hidden incentives that do not serve consumer needs. Few builders know the actual performances of Realtors in resale, and make recommendations that are not based on representing your interests, but their own. Choose a Realtor whose goal is your highest possible profit and not their builder allegiance.
A sound investment idea!Allow us to give you an up-to-date Comparative Home Price Evaluation. This gives you a good idea of the equity you will be able to reinvest into your new home.
Call Larry Today at 512-569-6990 and Let's Get Started!
