There are three different home options on the market today:
Builder’s Spec Homes: This is a brand new home that a builder constructed on a lot that usually has some upgrades. Builders also refer to specs as inventory homes which allows them to offer a timely move-in. The upside of buying a spec home is that everything is new in the home; the downside is that you may have more closing costs. Realtors and site agents see a huge benefit in working together to close a spec home.
Existing Homes: One of the biggest upsides of buying an existing home is that you have the ability to find a home with the best lot, the best view and the best amenities. Existing homes usually have all of the ceiling fans and blinds installed. If you want a pool, the chances are good that you can find a home you like that already has a pool installed. You also have the ability to move into a community you like that does not have new construction to compete with your home when its time for you to sell in the future. Sellers have often performed upgrades to the homes that help the home compete with new construction. This is also done by offering a home warranty. With that said, there also exists homes for sale that need “fixing up.” This is a great way to go into a home with equity. In this seller’s market, you can make improvements and live in the neighborhood you really want to live in.
Pre-sale: If you prefer building a new home you can choose the builder, the neighborhood, and build from your plans or theirs. This can be a lengthy process. Most builders will not take a contingency of your home selling prior to the construction of your new home. As a buyer, you must decide if you want to risk having two mortgage payments if your current home does not sell. Or you can choose to sell your current home first and live in temporary housing until your new home is complete. Some buyers do like the inconvenience of this. The upside to building is that you get to choose absolutely every detail in your new home. You can incorporate the latest trends in cabinetry, flooring, and floor plans. While builders in this robust market are not making deals on pre-sale homes each individual builder determines if the market dictates a need for buyer incentives. Builders always welcome buyers and their real estate professionals.
