Home Buying in Cumming>Question Details

Suman11, Both Buyer and Seller in Cumming, GA

New Constructions at James Creek, Cumming

Asked by Suman11, Cumming, GA Fri Jul 5, 2013

The James Creek community has evolved a lot in last couple of years. The family friendly environment, school district, close to amenities have made it quite attractive. We are looking at new constructions in James Creek area. There are few options like Ryland homes Edgebrook, Reserve by Aston Woods etc. An average 5 bd 3/4 bath with unfinished basement house in this area (new constr.) is approx 400$k. I wanted to know your opinion if this is unreasonably high due to the low inventory. Will there be appreciation if the buying price is 400K ?

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I know that new homes are very attractive, because no one lived in them. Ah the smell of new construction, but remember with new construction comes many expenses that you don't realize until after the closing:
1. Taxes are based on the price you paid for the house, which means you will not only pay a premium for new construction but a premium in taxes.
2. New construction does not increase in value as quickly as older homes, and has a higher potential to drop in price as other subdivisions compete for buyers.
3. Window coverings, and dressings are not part of the deal on new construction, sometimes you can get them thrown in for a premium price if you buy the model home.
4. Plants and landscape are usually at a minimum.
5. After the builder warranty is over and the house settles, you may get cracks, or doors may not close properly, this will be an expense you will have later on as well as replacing the carpets within 5 years, repainting inside and out after the contractor grade materials wear out.
With so many homes in this area that were built in the past 15 years, why pay premium dollars when you can purchase a resale for a bit less and pay less in taxes. You cannot base your decision on what the average sales price in the area is, because you are buying new construction, there are no other comparable homes except the other homes in the neighborhood to get an average sales price. Speaking from experience, I bought a brand new Pulte home once, the experience was less than I expected. Best of luck
0 votes Thank Flag Link Fri Jul 5, 2013
Hi Ken,

Thanks for your response. Definitely helpful. We currently live in a house which is 16 yrs old. I didn't like the fact that the amount of money we spend on repairs and maintenance. Also not to mention higher electricity bill (with not so eco friendly doors/windows and appliances. But yes home i.e. built 5 yrs. or less are definitely desirable. However I don't see more resales in that area for houses
Flag Sun Jul 7, 2013
After all of the "great area, fantastic for families, blah blah blah" reviews, it's all about the data.

You need to sit with a competent agent and have them pull data, explain the trends and isolate what new/newer homes have done over the last couple of years.

There are no guarantees, anywhere. http://hankmillerteam.com/atlanta-real-estate-conditions/cum… might be helpful from a broad standpoint

Drop me a line if you're not working with an agent, I'm an appraiser as well.
Web Reference: http://www.hmtatlanta.com
0 votes Thank Flag Link Fri Jul 5, 2013
Thanks Hank ! Your link was very helpful with some meaningful data.
Flag Sun Jul 7, 2013
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