New home builders are smart. They watched the real estate market and consistantly lowered the base prices of their models over the past 5 years and stayed closed to the average resale market. New homes have been reduced in price in Northern Virginia by about 25% over the past 4 years.
New home builders, however, are not burdened with the myriad of problems associated with many resale properties, no foreclosures and no short sales. Builders priced based on cost/plus based on market conditions
Private owners however, if they have owned their home for more than 5 years or more, may have equity but are reluctant to sell at today's market prices. Their homes are overpriced for the market because those owners remember what the value of their homes was 6-10 years ago and are reluctant to sell at today's prices.
The short sale market puts every contract at the mercy of the seller's lender and buyers may enter a contract of sale in good faith only to have the house go to foreclosure after 3-6 months of waiting. This is not a problem with new construction.
New construction offers the builder's and manufacturer's warranties and is generally repair free for some time. Resales on the other hand may come with a number of problems and may be costly after closing.
All things considered, unless a buyer needs quick occupancy, new construction is a great option.
Lovettsville, VA, 800-711-7988... more
Offering a CMA of homes that are on the market in a given community is not an accurate reflection of what a similar home is worth. I provide my clients with comparable properties that have SOLD within the last 3 and 6 months. When negotiation a sales price on behalf of my clients, I present to the listing agent the offer along with the recently sold data. The seller can ask whatever they like but only the market will dictate what the home actually sells for.... more