A few weeks ago, we had a customer walk into our Sales Center, and he said he was just in the area to look at a short sale in the area. He stopped in because he wanted to see what new homes were available and what they had to offer. (His agent didn't suggest he look at new homes) After discussing his wants and needs, we looked at three homes and the next day he returned to write a contract on one of our new homes that was priced $150,000 more than the short sale listing (same size home, but different features).
I'm sharing this true story because we see this happen quite often, much to the surprise of many in the business. I've come up with 5 reasons why buyers should consider the right home and the right community and not just focus totally on what they perceive to be the right price.
I realize that many buyer brokers are looking for the "best deal" for their clients because their buyers initially tell them, "I want the best price for a house, I don't want to pay too much in today's economy". Fair enough. I understand that there are short sale opportunities out there and many potential buyers see them as the best deal on the surface. But is it really the best home for their family? What is the right decision? Is it the right price but the wrong decision for your family? The lowest price home may not be the right home.
1. Are you trying to achieve just the RIGHT price? Or would you prefer to have the RIGHT home AND the RIGHT price? (Maybe even pay attention at the RIGHT neighborhood, while you're at it.) Many of today's new homes have advantages over some of the competitive homes on the market today, especially the ones that some are going out of their way to make you believe a short sale is of course, the better deal. In some cases, the short sale/foreclosure home may be the best momentary opportunity for the homebuyer, and everything is perfect for them...that's great, but it's always good to compare and investigate all options before they do make the offer.
2. The Brand New Home may actually be a better floor plan and design for your family. New homes at The Riverfront at Harbour View, Founders Pointe, Graystone at Eagle Harbor, and Liberty Ridge all offer more of what today's buyers are looking for. (Hampton Roads area of Virginia)
Custom builders are paying more attention to interior design, energy efficiency, quality appointments, and how people want to live today. Backyard creations and covered back porches are found in many of the new homes because people are looking for outside living space, especially on some of the homesites offering a view of the water, golf course, or over their privately wooded backyard. Many of today's floor plans showcase bigger Kitchens with floating center islands which connect to the Grand Room (Family Room/Great Room). More attention is being paid to the cabinet layout, the energy star appliance package, and focusing on a return to the old mud room, now referred to as a "drop zone", commonly located off the Kitchen/Laundry on the way to the garage.
3. Newer homes are built to a higher standard in our region, starting about 2009. More energy efficient homes, better foundations & framing, and better overall engineering. Some of the building construction changes/improvements that our builders are now including in their new homes are highlighted below. (Many localities did not start requiring these changes until 2009)
The 2006 International Residential Code changes implemented as of May 1, 2009 *
- Pier and curtain walls not allowed anymore in the prescriptive code. Solid perimeter foundations required.
- Continuous interior footers required in lieu of footings for individual piers.
- Some cities are requiring an engineered stamp on the footer under the steel beam point load. This creates a possible increase in concrete and a charge from the engineering firm.
- Brace wall provisions in the 2006 IRC have been rewritten and are being enforced. The Brace wall provisions require a Brace wall plan on the plans. The area most affected are the garage wing walls on most floor plans. Narrow walls with big openings next to them are not allowed in some cases. A proprietary system may be required on some floor plans.
- Two story Family rooms and two story Foyers are now being looked at very closely. New requirements may be enforced for the large window walls that are common on most plans. LSL studs may soon be required on each side of a window opening.
- Insulation requirements have increased under the new code in the ceiling and under slabs. We are required to use R38 in the ceilings and R10 at the perimeter of concrete slab foundations.
- Window efficiency requirements have increased to .40 U value minimum. This has forced suppliers to provide Low-E window units in order to meet code. The old standard insulated glass window unites could only reach a .45 U value.
4. In many cases, the new homes include more than the competitive homes on the market and more than the new homes did four or five years ago. Builders are able to get more from their trades and subcontractors, and they're passing the value onto the consumer. One of our builders' cabinet maker admits their throwing in little things in the kitchens that help make a difference, because they want to impress the homebuyer too. Landscapers are including more shrubbery/plant beds. Carpenters are adding small touches like southern bead board in porch ceilings or below chair railing where they didn't before. Some of the backyard kitchens, stamped concrete patios, and fireplaces help make the setting a place people want to be. Everyone is out to give the customer something extra, and we're seeing happier homebuyers.
5. Go visit your new home communities BEFORE you make that offer...don't be afraid to tell your agent that you'd really like to investigate the neighborhood and the community amenities as much as do a home on a resale home inspection. Too many times, we qualify buyers by asking them just the price range, the number of bedrooms & baths, square footage, etc. I've witnessed many instances where buyers, who recently bought a resale, came into our Information Centers and say, "I had no idea that your community offered so much...our real estate agent didn't bring us here...we would've loved to have had a clubhouse and pool for our kids to grow up around"...or "the quality in your homes is much better than the resale we just bought four months ago". What's the big picture?
How often do you know what they're really feeling? Do we listen well enough to discover what matters most to the buyer? Many times, buyers say one thing, but aren't ready to open up and share their true feelings and motivations. It's wise to include a new home community in your initial tour. You can rely on the site agent to help qualify their needs and wants. At our new home communities in the Hampton Roads area, we try to figure out the right match (home plan/homesite) for potential buyers first. If you're showing homes for sale in our price range, at least expose your buyer to all options before they lock in on what may not be the right home for them.
- Right Home + Right Neighborhood + Fair Price = Happy Homeowner
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