I am considering buying/customizing a 3 bedroom 2.5 bath 2 car garage townhome in North Strabane, PA. The

Asked by Tiffany, Pittsburgh, PA Mon Mar 10, 2008

builder is Heartland homes. I am concerned about the resale value since it is a townhome and new construction. The seller is offering 5% of total selling price deal (which is the first time they offered such a promotion due to the market). Maintenance fees are approximately $70/month. Real estate taxes are low and the Washington County area is developing. I am looking to stay in the property for approximately 5 years. Is there a strong risk of losing money when buying new construction townhomes?

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7
Ann Scoggins, Agent, Roswell, GA
Thu Apr 3, 2008
Tiffany,

You mentioned customizing in your question, something to consider when buying new construction directly from the builder is to think which options would be the ones to give you a higher return on your investment. What you customize/upgrade in the kitchen and the bathrooms will be a great investment in the future resale value, any structural option it is better to have the builder do it now versus you doing it later. In reference to loosing money buying a new townhome, I would not be worry about it, nevertheless if you have a Real Estate Agent to help you check the values in the area it would help you to determine if the price you will be paying is fair.

Also, know who will the complex attract now and in the future.. Are they all 3 Br 2 Bs or are they mostly one and two bedrooms. The location of the townhome itself is important, one is all built is your townhome in a desired spot?, will it be easy for parking and things like that. And finally get a survey, most people don't think about getting one, but you need to know for SURE if there are easements below your townhome, such as a sewer easement. The on-site sales agent represents the seller, not you.

Buying a home is exciting an if done correctly, historically a good investment.

Best Regards,
Ann - GA
0 votes
Dan Haeck, Agent, Pittsburgh, PA
Thu Apr 3, 2008
North Strabane is a really nice area. It is one of my favorite areas with lots of good development, good schools and public safety.
Web Reference:  http://www.55properties.com
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Crystal Alfo…, Agent, Pittsburgh, PA
Mon Mar 10, 2008
Without seeing it or the community, that doesn't seem out of line...I would hope it has brick front or at least some brick. Like I said, just take advantage of their promotions and you should be fine! Nice area!!!
0 votes
Tiffany, Home Buyer, Pittsburgh, PA
Mon Mar 10, 2008
The price is 169,900 and it is approximately 1560 sq. feet. There is wall to wall carpeting laminate countertops (not too many upgrades basically) Is this a good deal or fair price for the market for new construction?
0 votes
Crystal Alfo…, Agent, Pittsburgh, PA
Mon Mar 10, 2008
North Strabane is a strong buy because of the lower taxes, access to I-79 and a new multi-million dollar shopping complex being built accross from the Meadows. I will say, however, that Hearland Homes tends to have high prices, so take advantage of every incentive they have....and shop around.
0 votes
Terrence Cha…, Home Owner, Allentown, PA
Mon Mar 10, 2008
Tiffany,

I would get with a REALTOR in your area, they would be able to tell you if you will be paying a good price or not for the property. As for whether you would be losing money or not, that is like asking if the shares of a particular company will go up or not.

Typically, homes increase in value. The longer you own the home, the better chances you have in getting a gain. If you are planning to own the home for five years, there should not be any reason why the value would decrease. Just by judging the market, as a whole, the stagnent conditions should be getting better after the next year and the market should finally finish correcting itself (as long as the government does not get involved). If they (read us) bail out those with bad loans, who knows what can happen.

But I would highly recommend contacting an agent who knows your are best. Community changes can affect housing prices. New businesses coming in, old ones leaving, etc.

Hope that helps.

Terrence Charest
0 votes
Rita Avolio, Agent, Bethel Park, PA
Mon Mar 10, 2008
Tiffany,

No not at all. You are making a wise decision in purchasing. Even though the market may seem slow, eventually it will pick back up again. As with anything else, there are ups and there are downs. Since you plan on living in the townhome for 5+ years, you will have gained equity. The longer you live in a home, the better the equity becomes. Hope this helps.
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