Sunrise Homes & Renovations, Inc.

The Process Of Buying A New Construction Home

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The Process Of Buying A New Construction HomeBecause the housing market is so competitive right now, many buyers are looking at alternative options. Instead of looking for a resale home, some buyers are considering a new home. What is the process of taking out a loan on a new construction home? There are several factors buyers should consider.

Pricing On A New Construction Home

Many buyers are used to negotiating with sellers to get the best deal possible. On a new construction home, it is still possible to negotiate for a better price. Most homeowners are going to be negotiating for better items in the home than the purchase price. For example, it might be possible for buyers to negotiate for better counters, cabinets, floors, or appliances instead of asking for a discount on the price. It is also possible for buyers to negotiate for better options if they are the first or second people to move into the new community. Homes usually go up in price after the first homes in the community sell.

A New Home Is Often A Better Investment

Buying a new home is often a better investment than purchasing an older home. Newer homes tend to appreciate faster immediately after they are built. Many people like to buy a home that has had only one owner because items in the home are less likely to break. Therefore, homes with only one owner are often in higher demand, which can lead to higher property values on new homes.

Understand The Financing Process

Typically, prospecting homeowners need to put down a building deposit for the project to start. This is usually three percent of the projected sale price of the home; however, it can be higher or lower depending on the price of the home and the builders. In addition, homeowners need to be aware that they will need to secure financing when the building project nears its completion date. The lender might require a certain percentage down in order to finance the home.

Do Not Hesitate To Ask For Help

Buying a new home does have a few differences when compared to buying an existing home. Homeowners should reach out to professionals for help with this process to make sure they get the best deal possible.

HOAs: What Do Buyers Need To Know?

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HOAs: What Do Buyers Need To Know?There are many factors that buyers need to consider when they are evaluating a potential property. Sometimes, buyers run across properties that have to deal with something called a Homeowners’ Association, or HOA.

What Do HOAs Do?

An HOA ensures that communities look their best and function well. While HOAs were unusual several decades ago, they are becoming more common. HOAs are typically governed by a board made up of people living in the neighborhood. By ensuring properties look their best, property values could remain high; however, there could also be restrictive covenants in place.

How Much Do HOAs Charge?

HOAs can vary widely from place to place. Fees are usually charged monthly, quarterly, or annually. While some HOA fees might be less than $100, some HOA fees can be a few thousand dollars per year. HOA fees vary significantly depending on the number of people in the community and the amenities in the neighborhood.

HOAs use this money to take care of common areas in the community. For example, HOA fees are usually used to pay landscaping companies to take care of the common areas. HOA fees can also be used to take care of swimming pools, tennis courts, and golf courses that could be in the neighborhood. If there is security, the HOA fees are used to compensate that as well.

What Restrictions Can An HOA Put In Place?

There are many restrictions an HOA could place on a homeowner; however, these vary from neighborhood to neighborhood. Most of these restrictions involve the exterior of the home, as the point of these restrictions is to keep a homeowner from doing something that could adversely impact the home values of other properties. There might be restrictions on the size of trees, certain landscaping work, and patios. Make sure to take a look at these restrictions before buying a home.

HOAs Have Their Benefits And Drawbacks

Like other factors involved in buying a home, HOAs have their benefits and drawbacks. It is critical to work with a lender who understands how to read HOA covenants before making a decision. HOAs can play a significant role in what people can do with their home.

The Process Of Estimating Property Values

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The Process Of Estimating Property ValuesProperty values are a moving target. They are important to buyers and sellers because everyone wants to get the best deal possible. Sellers want to get as much money for their investment while buyers do not want to overpay for a home. There are a lot of factors that play a role in property values including the economy, the number of people looking for homes, new home construction, schools, the job market, and more. How do real estate agents estimate the value of a home?

How Much Will Someone Pay For A Home?

The market value of a home is the amount of money someone is willing to pay for that home. This is how real estate agents estimate the value of the home. He or she will usually take a look at similarly priced homes in the area (sometimes in the same neighborhood) to see what those homes are selling for. Then, the price per square foot will be applied to that specific home to calculate its value.

Often, real estate agents use the past six months as a guideline; however, if there has not been much action, agents might go back further. Agents will usually draw a radius of one mile to ensure homes are similar; however, some homes, such as luxury homes, are harder to compare.

A Professional Appraiser Is Usually Involved

Sometimes, home values are calculated by a professional appraiser who is typically hired by a lender. Lenders want to make sure they will get their money back if the home sells in the future. If the buyer is paying more than the appraiser says it is worth, then the lender might ask the buyer to put more money down before financing it.

Real Estate Agents Could Ask For More Information

Real estate agents might also ask homeowners for more information. If one house stands out on the comps sheet, the agent might ask the homeowner what happened. What makes this house different? Is the location different? Did the home sell as furnished? All of this is important for helping realtors ensure they are doing the best possible job in guiding their clients in the right direction. Some sales may still require the help of a licensed appraiser.

A Home Inspection: What To Expect

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A Home Inspection: What To ExpectThe process of buying a home can be exciting and stressful, with one important task being the home inspection. All real estate professionals will likely recommend a home inspection. This is usually a condition of making an offer on a home. While not all prospective buyers will ask the seller to make repairs based on the inspection report, it is important for buyers to know what they might have to do to repair the home.

When an offer is made with a contingency, this allows the buyer to renegotiate the price of the home based on the inspection report. Some prospective buyers might elect to walk away entirely. What should buyers inspect?

Choosing An Inspector

A trained real estate professional will probably have a  list of inspectors who might produce the report. All inspectors are trained and qualified. Real estate agents will probably look at sample reports and professional licensing before choosing an inspector to look at a home. Most inspectors also have insurance in case they miss something that shows up later. Home inspectors will need to crawl into the crawl space, inspect the roof, and take a look at storage spaces.

What Do Inspectors Look For?

A home inspector is going to look at every aspect of the home to make sure it is up to code. An inspector will look at the roof for signs of leaks or damage. The inspector will also inspect the plumbing system to make sure no pipes are rusted, corroded, or damaged. He or she will also look at the windows to make sure the seals are not busted. A home inspector is also going to take a look at the HVAC system to see how old it is and how well it is working. The fireplace and chimney will also be an important part of the inspection as he or she looks for signs of damage. The inspector will also look at the foundation for any issues.

A Comprehensive Report

Once all of this is done, the inspector will provide a comprehensive report that contains a list of everything that might be wrong with the house. Then, based on this report, the buyer can decide what he or she would like to do next.

The Top Tips for Saving Money On Energy Bills

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The Top Tips for Saving Money On Energy BillsThere are many homeowners who are looking for ways to reduce their monthly expenses. One way to do that is to target energy bills and expenditures. Homeowners might be able to make a few changes and upgrades to their homes, which could reduce utility bills and improve energy efficiency. What are a few ways to do exactly that?

Consider Making The Switch To LED Lights

One of the first changes homeowners might want to make is to switch to LED lights. LED lights are newer lights that can last many times longer than traditional lightbulbs. It is not unusual for homeowners to save $75 per year on energy costs by switching older incandescent lightbulbs to LED bulbs. Talk to a local contractor or professional about some of the top LED bulbs available today.

Seal Leaks Around Doors And Windows Throughout The Home

Heating and cooling expenses are some of the biggest energy expenditures that people have. By sealing a few leaks throughout the home, it is possible to save up to 20 percent on heating and cooling costs. There are small leaks that could be present around the doors and windows. By sealing these leaks using caulk, homeowners can trap heat and air conditioning in the home, removing stress from the HVAC unit. Homeowners should also consider sealing leaks around lighting and chimneys.

Invest In A Smart Thermostat

It is also possible for homeowners to save money by investing in a smart thermostat. Homeowners should consider using this thermostat to reduce the amount of work performed by the HVAC unit when people are at work or asleep. That way, the heating and cooling system doesn’t work as hard when people aren’t home (or are asleep).

Perform Routine Maintenance On Time

Finally, homeowners need to make sure they perform routine maintenance on their HVAC systems on time to reduce energy expenses. For example, the filters might get clogged, forcing the HVAC system to work harder to heat and cool parts of the home. By investing in maintenance, the HVAC system will operate at peak efficiency, which will reduce energy bills. This will also extend the life of the HVAC system efficiency, which might allow homeowners to put off replacing it.

The Younger Generation is Looking To Buy Houses

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The Younger Generation is Looking To Buy HousesThe current housing demand is unparalleled and because of this demand, home prices are skyrocketing. Nonetheless, people continue to shop for homes. Low interest rates and high demand combined with supply chain issues are stunting the homebuilding industry, creating a perfect storm for an unprecedented housing market. In addition, there are many millennials who are looking for homes right now as well. Why is this the case?

Interest Rates Are At Record Lows

One of the biggest reasons why so many younger people are looking to buy a home is that low-interest rates make them more affordable. As a result, people are able to stretch their dollars farther. There is no question that buyers want to take advantage of low-interest rates; however, this is also driving up the price tag of homes. What some home buyers might save in interest they could have to pay extra in principle.

Young Homebuyers Want To Grow Their Wealth Through Homeownership

Owning a home is an investment, and young buyers see it that way as well. Right now, millennials and gen Z adults are looking to purchase homes for the first time. During the next year, these numbers are only going to increase. A lot of young adults realize that they may never see a market like this again; however, the lack of supply in the housing market continues to remain a challenge.

Inventory Is Historically Low

Now is a smart time to buy a home for everyone, including young adults; however, the challenge is finding one. There are many buyers who are looking to purchase homes right now and there are not that many houses for sale. Therefore, some buyers might eventually give up and wait for the market to cool down; however, it might require a spike in interest rates to make that happen. This is leaving many homebuyers confused about what to do next. That is why it is important to work with an experienced real estate professional.

Help Is Available

Buying a home is a major decision and it is important to get this right. That is why it is a smart idea to work with an experienced real estate professional who can help buyers make the right decisions.