Home Buying in 85355>Question Details

d517, Home Owner in 85388

Is it better to buy a new house or a fairly new resale in Maricopa County? I'm afraid if I commisson a

Asked by d517, 85388 Thu Jul 3, 2008

(tract) builder to buy one if his homes, in the interim, he may go bankrupt, and then I will have to find suitable contractors to finish the job, unless I buy a house a builder has already finished. On a resale, it looks like there is less chance of loss since there is no builder to file bankruptcy. Do you agree? I've looked at Trend homes along Olive Road in Waddell AZ, and discovered they filed bankruptcy last Feb, but are trying to work it out. I'm a little worried about buying a home from them in case they can't afford to finish my home. I do like their home designs though. What do you think?

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5
Tonje Kearney’s answer
I would definitely stay way from new home communities right now. Any developements that are not finished, runs the risk of not being completed. In addition with the downward price pressure throughout the valley, you would want to limit your exposure to declines as much as possible. Established neighborhoods are seeing less declines than new builds on the outskirts. In addition in established neighborhoods, yor are only fighting off bank foreclosures and real people selling. In new developements you also compete with the builders trying to unload their inventory. I would strongly advice against buying anywhere near an unfinished subdivision.
Web Reference: http://www.TeamKearney.com
3 votes Thank Flag Link Thu Jul 3, 2008
a fairly new home is better
0 votes Thank Flag Link Fri Jun 28, 2013
It appears the most important aspect of your decision revolves around the financial issues of this real estate transaction & rightly so. With quite a few builders going broke, bankrupt & shutting down their business, you should definitely be concerned with the builder's finances. Did you know that the earnest deposit you give to the builder goes directly into their bank account & not into a neutral account? If you were my buyer client, I would make it mandatory that your earnest money gets deposited into a neutral escrow account & any future money you are required to pay gets deposited into that same neutral account. This way, your money is protected. If the builder will not agree to this, then walk away. However, if the builder will agree to this, then the only thing you will have lost if the builder goes "belly up" is time.

Whatever you decide to do, I encourage you to consult with a few Buyer's Agent REALTORS to find the one that will best suit your needs.

I hope the information I provided will help you to make good real estate decisions.

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Paul Welden
REALTOR
HomeSmart Real Estate
0 votes Thank Flag Link Fri Jul 4, 2008
You are correct in much of your thinking. It is wise to very careful today with the market conditions we are experiencing. A number of factors for you to consider: how long do you intend to live in the home? Own the Home? Commute time acceptable to you? Is the project close to sold out or just beginning? Who holds your earnest money? What is the build time? What are the resale’s actually selling for in the project? Are you price protected?

Hire a Realtor that has the experience to represent you, consider all options. Some parts of the valley are going to recover much quicker than others!!! Trend is letting hundreds of lots foreclose in one project that I know of, very difficult to be homeowner in that one, be careful.

I would be glad to answer any questions you might have.
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Thu Jul 3, 2008
1) Hire a REALTOR - The "nice" people in the models represent the SELLER and not you as a buyer. Our services for buyers a FREE OF CHARGE 99% of the time.

2) You can have your REALTOR "Negotiate" on your behalf and insist that if you buy a NEW HOME that you earnest deposit be put in a neutral ESCROW COMPANY that "is not" nowned by the builder instead of the builder's general fund.

3) You can have your REALTOR change the language of the builder's contract back in your favor to meet your needs.

4) Buying a NEW HOME is risky because builders have recently gone bankrupt. Consider a resale in the neighborhood.

I hope this helps.

FREE REPORT: "The market has changed Discover How to Avoid the 6 Biggest Mistakes Homebuyers Make." http://www.thekeysteam.com/buyer_mistakes.asp
0 votes Thank Flag Link Thu Jul 3, 2008
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