Question Details

Anu, Home Buyer in San Jose, CA

Lennar Homes in Fremont

Asked by Anu, San Jose, CA Fri Nov 30, 2012

Hello - We are quite interested in buying a home in Fremont by Lennar Homes. The plan that we are particularly interested is the Wisteria. I am looking for some advice on
1 - Comparable home prices in that area - the Cherry/Guardino area homes seems to be lower compared to other areas in Fremont. is 600K for the new home worth investing? Are we overpaying?
2-The homes are not very big but they are within my budget. However I am confused if this is the right home. It does check off quite a few points on my list but construction quality, homes prices in the area (Cherry/Guardino) are my concerns.
3- What other areas are worth considering in Fremont area. I am not particular about the schools but Safe neighborhood and decent commute to the valley are my priorities.
thanks!

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Answers

2
You have a few questions:

Q: Comparable home prices in that area - the Cherry/Guardino area homes seems to be lower compared to other areas in Fremont.
A: There are not a lot of comparable homes in that area, so there is no benchmark for the price. If you look to Parkmont or Niles you will find prices and homes that would be better comps. Make sure you check the school scores to make sure you are comfortable with them. Call the FUSD at (510) 657-2350 to make sure about the specific schools. You can also use the address checker at the following post:

Neighborhood and School (Fremont Unified) Maps for Fremont, CA
http://www.trulia.com/blog/carl_medford/2009/02/neighborhood…

Q: is 600K for the new home worth investing? Are we overpaying?
A: It’s not an issue of overpaying … it’s what the houses are selling for and the builder will not be lowering the prices. If you want one, that’s the going rate.

Q: The homes are not very big but they are within my budget. However I am confused if this is the right home. It does check off quite a few points on my list but construction quality, homes prices in the area (Cherry/Guardino) are my concerns.
A: Lennar is a well-respected builder. Construction quality should not be an issue. For the concerns about home prices, see above. Keep in mind that new construction is the most expensive type of home to buy.

Q: What other areas are worth considering in Fremont area. I am not particular about the schools but Safe neighborhood and decent commute to the valley are my priorities.
A: It depends if you want a new home or are willing to buy a resale property. If you want a new home, there are not very many options. MAKE SURE you take a realtor familiar with new homes with you when looking at models – an agent used to working with new home builders will know all the negotiating points. If you are OK with re-sale, most of Fremont is very safe. If you are commuting south, then obviously neighborhoods in the southern half of the city would be better. You will pay a premium for Mission San Jose.

Bottom line: inventory is VERY low in Fremont right now and there are multiple offers on almost everything. New homes are an excellent option if you don’t mind waiting – as an example, Pulte’s development in Irvington has a very long waiting period. If you go with new, you won’t be competing in multiple offer situations – but you won’t get a discounted price either.
0 votes Thank Flag Link Thu Dec 6, 2012
Since I represent lots of investors, I can tell you that we wouldn't buy any single residence units over $450K. So once you go beyond that price point, you should look at the home in terms of how it serves your interests. And, if it's selling well, then it's also serving the interests of many others, thus giving you confidence in a strong resale.

Now, if you're seeing the community sit for months before selling a single unit, then it's overpriced for the market. At this point, we don't see that happening. Since it's selling quickly, it means the community must be slightly underpriced. Let me know if you'd like to discuss the economic rationale for builder pricing.

If you're looking to commute to the valley, then you're looking in the right areas. Since Fremont is quite large, there are other areas within the city which are nice but can add 15-20 minutes to your commute each way.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Fri Nov 30, 2012
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