*Note: This was written by a Yahoo! contributor. Do you have a real estate story that you’d like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.
Probably one of the neatest things about working in real estate is that I have the opportunity to go into thousands of homes every year. Some homes are brand new, while others are not so new. Regardless, when working in the capacity of a real estate agent it’s my job to get my buyer the best possible deal.
The truth is that 2010 was one of the worst years for builders in over three decades. Less folks are building and more are moving to the pre-owned housing market to buy. This shift has inspired builders to dig deep in their pockets and do everything possible to bring buyer’s back. From a professional’s point of view, if you are going to buy a home in the next year, make it a new one. I will give you five compelling reasons why.
Front loaded incentives
Many new homes come with drastic discounts from $20,000 – $50,000 off the suggested sales price. This is especially true for “inventory” or “spec” homes that the builder has to offer; he’s desperate to get that property off his books.
Most builders own their own finance companies, or are at least attached to one. Because of this the builder will often provide a buyer with financing incentives such as rate buy downs or paying all loan closing costs. Frankly, there isn’t a better deal to be found.
In a down market, pre-owned homes will take longer to recover in equity than most builder communities. Buying a new home at a substantial discount means that as the building industry picks up and the builder increases his pricing, your equity builds faster in that neighborhood, instead of staying “on par” with the Jones’ and the Smiths’.
Today’s homebuilders offer incredible warranties. When buying at a discount and getting everything under your roof covered by excellent warranties it’s a win/win.
Not only are newer homes “newer” but most of them are far more energy efficient than pre-owned homes, making them an overall better value year over year in terms of what they offer in utility bill savings.
The truth is that these deals are not going to be around forever, and low prices and hefty incentives from builders stretch from empty lots to spec homes to model homes in the current market. Easily, new homes are the best market deals to be had for any buyer within the next year, and buying one has a multitude of benefits. That’s advice you can take to the bank.
More from this contributor:
Complete First Time Homebuyers Guide
Buyer’s Advice: The Facts
The 3 Major Home Buying Mistakes to Avoid