Welcome to Allen, the town voted the suburb for a growing family in 2019. That’s what Money.com rated us in 2019. It’s also what we’ve known all along!
One of the problems with being so great is finding that perfect home before anyone else does.
This showcase of homes is designed to help with just that. These homes are for sale in Allen and are 10 or less days on the market! The search is free, private and ad free. Save, search and share your favorites. Schedule a showing with the click of a button.
It’s constantly updating so check it often and then call Kelly Pearson or Lynda Roundtree for your next steps at 469-631-LUXE!
Newest Allen Listings
List of Allen Awards:
Check out who thinks we are tops in places to live!
- National Recreation and Park Association Accredited (September 2019)
- 2019 Best Suburbs for Growing Families (September 2019)
- MONEY’s #2 Best Place to Launch a Career (March 2018)
- CNBC Make It Best Suburbs in America (February 2018)
- AreaVibes #1 Best Place to Live in America (November 2017)
- MONEY’s #1 Best Place to Live in the South (November 2017)
- 2017 Digital Cities Survey Winner (November 2017)
- TOMA Award for Best Creative Project: Cottonwood Creek Trail Bridge (February 2017)
- 5 Friendly Cities for Young Families (January 2017)
- NRPA Gold Medal Award for Excellence in Park and Recreation Management (October 2016)
- WalletHub Allen Is the 4th Best Texas City for Families (July 2016)
- Governor’s Community Achievement Award (June 2016)
- Niche 2016 Best Places to Live in Texas (June 2016)
- ApartmentList.com Best Cities for Young Families (February 2016)
- ApartmentList.com Best Cities for Young Families (December 2014)
- Nerd Wallet Best Places for Young Families (October 2014)
- D Magazine Best Suburbs (June 2014)
- Family Circle 10 Best Towns for Families (June 2013)
- Money Magazine Best Places to Live (August 2012)
- Forbes.com Best Places to Move (July 2009)
It’s 2020! We are at the start of a brand new year with the usual New Year’s resolutions made. Eat right. Loose weight. Travel. Less time on social media and more time at the gym. There is, however, one unique resolution authorities are asking everyone to make. Please write 2020 on all official forms. No abbreviating.
It’s an original resolution. One that might actually be kept!
It all started in Law Office of George E. Moore III, LLC., an attorney in Ohio, who put up the original warning. His Facebook post has over 54,000 shares.
Then the police department of a small community in Penobscot County, Maine shared it. The East Millinocket Police Department to be exact. They also decided put the post out as an actual warning.
The New Year’s Day tip has since gone viral. This piece advice has been all over the place. It’s on ABC News and CNN and FOX News. You can’t buy this kind of publicity!
The question remains. Is this something we need to really worry about?
Allen Homes for Sale
Two Sides to a Story
Looking at all the comments on the posts, many people are talking about the turn of the century. Remember Y2K and all those scares? It seemed like everyone’s computer was going to crash over turning from 1999 to 2000.
Here’s an archived page from the LibraryofCongress.com showing how just one network planned to handle the Y2K issue.
Those poor people. Wonder how viral a Y2K post would have been if we had Facebook then. Would there have been a real panic? Would someone automatically known the solution? We’ll never really know.
The Y2K disaster everyone was warned about never even happened.
You have to wonder why. Was it because computer programmers managed to fix every ‘operating system’ out there? Was it because there really wasn’t a scare in the first place?
A Practical Approach To Abbreviating
Here at Luxe, we take the practical approach to everything. We like to look each situation from all angles before we judge.
We asked Attorney and Realtor® Lynda Roundtree on our team for her take on the subject.
She came up with some very sound advice.
“When signing any type of legal or financial documents, it is always important to make sure the documents are properly dated. Completely writing out the year 2020 as opposed to the abbreviated “20” will erase any potential confusion or fraud if someone were to try and manipulate the date after the fact. Best practice would also include obtaining copies of the documents you sign at the time of execution. I don’t anticipate this being a huge concern, but erring on the side of caution is always best.”
That second part is just as important! Protect yourself by writing out the date. Get copies of everything you sign when you sign them.
They’re the proof in your hand. Those copies of what you signed are part of your best defense against any fraud.
How Long To Keep Documents
What do you do with the copies of all these important papers you’ve saved?
Protect your papers in a warm, dry, fireproof-box, or safe. Invest in a good paper shredder. It will minimize the risk of identity thieves getting hold of your discarded documents.
Organize them in categories such as financial, medical, home, and school. Financial advisers agree you should divide your financial papers into four categories.
Keep for less than a year.
Store papers like your ATM, bank-deposit, and credit card receipts until you reconcile them with your monthly statements. Once you’ve done that, shred the paper documents or securely trash electronic files unless you need them to support your tax return. Keep insurance policies and investment statements until new ones arrive.
Keep for a year or longer.
Hold on to loan documents until the loan is paid off. That will often be for more than a year. Hold on to the title of your car until you sell it. Keep the purchase confirmations for investments such as stocks, bonds, and mutual funds until you sell, so you can establish your cost basis and holding period. Always hold onto your mortgage paperwork, closing file, deed. Keep track of mortgage as it’s being paid off to make sure that your payment records and your bank’s are the same.
Keep for seven years.
Failing to report all of your gross income on your tax returns mean the government has six years to collect the tax or start legal proceedings. Err on the safe side, keep all tax records for at least seven years.
It’s not just as simple as abbreviating a date to protect yourself from fraud. You need to really have a system in place to handle paperwork important to you and the people you love.
They and you are worth the effort.
Thank you to Attorney Lynda Roundtree for the free legal advice.
Lynda has a great reputation for helping people sell homes that have been on the market for quite a while. She has a knack for analyzing the situation and developing a plan to go from unsalable to sold!
Got questions for Lynda? You can contact her here.
Are you house-hunting this weekend? Yes? Then we hereby invite you to our, ‘Open House Festival’ on Saturday and Sunday. We’re starting November with offering you the convenience of viewing 12 homes altogether, no appointment needed!
On top of that, you have a chance to win a $250 Visa card on Saturday! Plus, if you sign up on our website for an account this weekend, you’ll be entered into our upcoming holiday contests! Our home search is one of the best you’ll find! It’s also free from ads and pop-ups, completely private, and free to use.
Just sign up here:
Here’s the open house info for the weekend. Please feel free to call us with any questions at 469-631-LUXE. We look forward to seeing you this weekend.
Cumberland Crossing is a master-planned neighborhood featuring beautiful homes located in Allen, Texas. Allen is known for amazing outdoor parks, nationally recognized schools, inspirational cultural arts, multidiscipline athletics, and elegant to fast dining. Residents in Allen enjoy a wholesome community atmosphere with something for everyone.
The Cumberland Crossing Homeowners’ Association is dedicated to ensuring the beauty and stability of the area, promoting neighborliness and pride among the residents, and forming a base for representation in matters affecting the community. This web site provides services to residents of the Cumberland Crossing Community.
We offer a variety of social activities and amenities. You can find out more about these through the links above. If you need more information or have an issue to bring to our attention, please follow the links for our Board Members or other appropriate contacts contained herein.
Getting those keys to your new home is such a wonderful feeling! You’ve worked so hard to get here. You’ve been in the process of it for months, years, maybe even decades! Are you the first person in your family to own a home? What milestone will you reach once you’ve accomplished your goal of buying your next home? Finally, how much of what you watched on HGTV actually helped along the process?
Maybe some of the advice helped on the shows of buyers finding new homes is great and helpful, but nothing on any reality tv channel can really prepare you for what you experience in real life. You need professional, personal and trusted advice along the way. Anything short of that will leave you unprepared and open to any preventable pain that could have been avoided if you were better prepared.
That’s why we’re continuing our two-series on buying a home with Part II of home-buying tips. You can view Part I here. These tips are here to give you a good foothold in your position as a buyer. We don’t cover everything because frankly, you can’t do so with tips on a blog. Your situation is different than everyone else’s because you’re different from everyone else. Getting personal advice from an advocate you can trust in real estate will be in your best interest.
Check out the tips below and please feel free to contact me with any questions you may have.
1. Follow Interest Rates
It is important to know what interests rates are doing. The big question is are they on the rise or are they falling?
When the economy is good the Federal Reserve typically raises the interest rate in an effort to slow down economic growth in order to control inflation and rising costs. When the economy is in the dumps the Fed does the exact opposite. They lower the interest rate in order to entice more people to make larger purchases that require loans (i.e. land, cars, and houses) to help stimulate the economy.
As new soon-to-be homeowners, it’s a good idea to know how the overall economy is doing, and more importantly, how it’s impacting the interest rates you’ll soon be applying for. In 2018, after years of bottom of the barrel interest rates, the Fed raised interest rates three times and is projecting to raise it three more times in 2019. So far so good, we still low!
2. Know How Much Time it Takes to Buy a House
The home buying process from start to finish is time-consuming and very relative to individual circumstances and the housing market in your area. However, there are some general universal constants that you can expect, such as a cash offer on a house is usually much quicker than a traditional loan, and if there is a perfect house in a good neighborhood and at a great price, you better expect competition and added time for a seller to review offers.
Depending on the housing market in your area and possibly which season you’re buying in, it can take you a couple of weeks to find a home or more than a year. But after you find your home you can typically expect the entire process from making an offer on a house to walking in its front door, to be as little as a few weeks to a couple of months on average.
3. Find a Knowledgeable Real Estate Agent
There are several ways to find a knowledgeable real estate agent. Many people rely on recommendations from friends and family, while others look to online reviews. While both of these scenarios work really well and can land you a great real estate agent, the reason these agents rise above the others as the best of the best or the crème de la crème is because of their intentions.
A good real estate agent isn’t trying to get you into a house as quickly as possible so they can earn a commission. Instead, you want an agent that will act as your guide through the home buying process, while having your best interests in mind. A good agent will be able to tell you straight if they think a house is a good fit for you, or if you should keep looking. They should also be expert negotiators so that you get the best deal possible.
4. Find a Mortgage Lender
There are a few things to keep in mind when researching a mortgage lender. The first thing that comes to most people’s’ minds is what mortgage rate can they get. You may have to shop around to find the best rate because lower the rate the more money you save.
Secondly, how does that mortgage lender rate compared to other lenders? By looking at positive and negative online reviews you can usually establish a theme pretty quickly of the strengths and weaknesses of the lender, and what you can possibly expect for a level of service down the road.
Ask the lender what their average length of time is to close on a house after the offer has been accepted? A good lender versus a bad one can be the difference of moving into your new home two to four weeks earlier. You want to find out how streamlined their processes are.
5. Get Pre-approved
When being approved by a mortgage lender, you should be aware that there is a small but relevant difference between the typical fast pre-approval for a home loan versus an underwritten pre-approval.
The fast pre-approval usually encompasses a credit report and a loan officer review and can be done in less than a couple of hours. This basic pre-approval allows you to quickly know how much you can afford and then make an offer on a house that may have just come on the market.
The underwritten pre-approval usually takes about twenty-four hours and includes a credit report, loan officer review, underwriter review, and a compliance/fraud review. Though this process takes longer, your offer on a house is actually stronger. Eventually, if you’re planning on buying a house, you will have to go through the underwritten pre-approval process anyway, so it’s better to jump on it from the start.
6. Research Neighborhoods or Areas You Want to Live
There are many variables to think about when researching your future residents. The key to beginning your research is to determine those variables most important to you. Are you looking for a good school district, a large house, convenience to commuter options, or a specific neighborhood that is extremely friendly and ranks high on Walk Score?
Your real estate agent will most likely tell you to figure out your list of the things you absolutely want in a house versus the extra features that you would like to have, but wouldn’t deter you from a house if it wasn’t there.
Your list will help your agent narrow down the number of houses they’ll show you, saving you time by only showing you houses you’d actually be interested in.
7. SHOP FOR YOUR HOME AND MAKE AN OFFER
Now that you know where you want to live and you’re pre-approved, the fun begins. You get to look at houses! Once you find the house you know would be a great fit for you and your family, you’ll want to make an offer.
There are numerous variables to consider and hopefully, your knowledgeable real estate agent will help you through this process. Understanding the market conditions, how houses have been selling in the neighborhood and at what price (above or below asking), and knowing if there are other competing offers will help you assess and determine how you’d like to make an offer.
Negotiating an offer on a house can be emotionally taxing, so do your research and rely on your agent’s advice so you come to the table prepared.
8. Get a Home Inspection
Congratulations are in order! The sellers have accepted your offer. Now you want to get the home inspected to make sure there are no underlying issues that could cost you money down the road, such as a bad roof or foundation. Usually, a home inspection is a contingency built into the initial offer, and your real estate agent can help you set this up. However, it is recommended to hire an inspector that is certified by a national organization (such as ASHI or Inter-NACHI). Though you can waive this contingency if you’re trying to make your offer more competitive in a hot market. Just be aware that if you do waive a home inspection contingency, you may be taking on considerable risk.
There are several types of home inspections, but in general, a typical home inspection involves a certified inspector that will go in, around, under, and top of your house looking for anything that could be of concern, such as structural or mechanical issues. The inspector would also look for safety issues related to the property. Though they will go into crawl spaces and attics as part of their inspection, they will not open walls. They will inspect the plumbing and electrical systems and should point out any defect in the property that could cost money down the road for the homeowner.
Then they will put their findings into a nice written report for you with pictures, which then basically becomes a miniature instruction manual for your house. No house is perfect, but the report will give you a great snapshot of the property at the time of the inspection. If there are fixes that need to be addressed, this report will certainly let you know.
You should also know that the sellers are not required to make any repairs to the property. However, you can request them through your real estate agent, which will let you know what repairs are reasonable or not.
9. Have the Home Appraised
Home appraisals are an important part of the process because oftentimes house prices can quickly skyrocket when the housing market is hot, and banks do not like to loan out more money than what a home is worth. A home appraiser will not only tell you what the home is actually worth for the area and for the current housing market, but this appraisal will also directly affect the size of loan the bank will give you.
If the home appraisal comes back and states that the house is worth $300,000, but you made an offer of $310,000, the bank will most likely only lend you $300k. You will then either be stuck with paying the additional $10k out of pocket, or you may try to renegotiate the price with the sellers to see if they would be willing to come down. Or you may lose the house altogether.
Also, the mortgage lender will usually set up the home appraisal so you can take this time to focus on other home-buying tasks that need to be finished up.
10. Close the Sale and Sign The Papers
Congratulations, you’re a homeowner!
Your real estate agent should help you map out the last details, such as when and where you should sign all the papers to take ownership of the house and, of course, the handing over of the keys.
Welcome to your new home!
We love homes. We’re a nation that loves everything about homes from buying homes to renovating them. We love homes so much that we will watch shows about people buy homes in other countries, just to see the houses and guess which home they’re going to buy. Channels like HGTV are devoted to exactly this! Look around your neighborhood stores as well. How many carry items you’d need to build, repair and replace parts in your home? How many have things you want for your home, from garden centers to furniture to kitchen cabinets?
We also fall in love or at least become somewhat sentimentally attached, with the homes we want to buy. Notting getting your offer accepted when you find that perfect home and decide to bid on it can sometimes be heartbreaking. I say sometimes because you may not get so attached to the home that you feel you’re heart would break – but you could still lose money and time and that is frustrating.
Can you completely avoid this? No. You can do things to minimize the probability. We’ve come up with an extensive list (in a two-part post) of what to do and know before you start the process of buying your next home. The information we’ve provided has been designed to put you in the most strategic position to attain a mortgage, view homes and place your best offer to try and nab that home you want.
As a Prepared Buyer:
1. Check Your Credit Score
Before applying for a loan and certainly before ever making an offer on a house, you should know your credit score. Why is your credit score important? Well, it’s not only the difference between getting a low-interest rate on a home loan versus a high one, but it will also directly impact how much a bank or lender will actually loan you. There are several websites you can use to check your credit score, here are a few to consider: TransUnion, Equifax, Experian. Always consult with a mortgage professional first before you payoff any debtors.
You can check your own score as much as once a day without affecting your credit, also known as a soft inquiry. Hard inquiries are when financial institutions check your credit score, typically when you’re applying for a loan or credit card. Hard inquiries lower your credit score a few points, so try to keep hard inquiries to a minimum.
2. Improve Your Credit Score
Maybe you just checked your credit score and realized it’s not as high as you had expected. Don’t worry, there are a few things you can do now that will help raise your credit score so you can capitalize on a great interest rate.
Though you can easily implement steps to help your credit score, fixing or raising a credit score doesn’t happen overnight. It’s imperative to start now so when you go to apply for a home loan your credit score will (hopefully) be where you want it. Here are three tips to help improve your credit score, and recommended by John Heath, Directing Attorney at Lexington Law:
Obtain and Closely Review Your Free Credit Report: In order to improve your credit score, you first need to know what information is on your credit report. The Fair Credit Reporting Act (FCRA) gives you the option to obtain a free credit report from each of the three nationwide consumer reporting companies once every twelve months. Your credit report contains information including your current and past residences, how you pay your bills, bankruptcies, foreclosures and more. Obtaining and understanding the information on your credit report will help you know what you may need to address in order to improve your credit score.
Use a Credit Report Repair Company to Dispute Errors: Your credit history is 35 percent of your FICO score, and according to a 2013 study by the Federal Trade Commission (FTC), more than 40 million Americans have something that is incorrect on their credit report. While a late payment or derogatory mark from a creditor may seem harmless, it can have long-standing consequences, in some instances staying on your report for seven years. If you have errors on your credit report, consider working with a credit repair company, who can navigate the complexities of credit repair, contact the credit bureaus on your behalf and help remove any errors as quickly as possible.
Spread Credit Card Debt Across Multiple Cards: If any of your credit cards are close to the maximum utilization point, it will be a red flag to lenders, who see this as an indication that you could be having financial issues. If you have multiple cards, spreading the balance out between them could make sense. For example, instead of having one card that is 90 percent maxed out while two other cards have a zero balance, having a 30 percent balance on each card can help your credit score. Reducing overall debt is always the best option, but spreading out your balance can have a positive impact.
“Improving one’s credit score may take time, but it can be done. Bad credit is not irrevocable,”
said Heath. “Developing good habits and repairing your credit report will help increase your
credit score so you’re able to secure a home loan or a great interest rate with confidence.”
3. Know What You Can Afford
The best way to determine how much house you can afford is to simply use an Affordability calculator. Though calculators such as these do not necessarily account for all of your monthly expenditures, they certainly are a great tool for understanding your larger financial situation.
After you figure out what you can comfortably afford, you can then start online window shopping for houses and really begin to narrow down what you want in a house versus what you can afford. Are you looking at specific neighborhoods? How many bedrooms do you want? Do you need a large yard, big deck, swimming pool, man cave, she shed, etc?
Understanding what you can afford in the area you want to buy will help keep you grounded and focused on what you actually want in a house versus what might be nice to have.
),4. Save Up For a Down PaymentUnless you want to pay Private Mortgage Insurance (PMI)
You really want to save up for a sizable down payment. PMI is an added insurance charged by mortgage lenders in order to protect themselves in case you default on your loan payments. The biggest problem with PMIs for homeowners is that they usually cost you hundreds of dollars each month. Money that is not going against the principal of your mortgage.
How much should you save for a house? Twenty percent down is typical with most mortgage lenders in order to avoid paying for PMI. However, there are other types of home loans, such as a VA loan if you have served in the military and qualify, that may allow you to put down less than twenty percent while avoiding PMIs altogether.
As an added benefit to having a sizable down payment, you may also receive a lower interest rate that will save you tens of thousands of dollars in interest over time. So start saving now!
5. Build Up Your Savings
Lenders like to see a healthy savings account and other investments or assets (i.e. 401k, CDs, after-tax investments) that you can tap into during hard times. What they really want to see is that you are not living paycheck to paycheck. A healthy savings account and other investments are a good idea in general as it will help you establish your future financial independence, but it is also a necessary item on your checklist of what you need to buy a house in 2019.
6. Have a Healthy Debt-to-Income Ratio (DTI)
Another key component banks and other lenders consider when issuing loans, and at what interest rate, is your debt-to-income ratio. The debt-to-income ratio is a lender’s way of comparing your monthly housing expenses and other debts with how much you earn.
So what is a healthy debt-to-income ratio when applying for a home loan? The short answer is the lower the better, but definitely, no more than 43% or you may not even qualify for a loan at all. There are two DTIs to consider as well.
The Front-End DTI: This DTI typically includes housing-related expenses such as mortgage payments and insurance. You want to shoot for a front-end DTI of 28%.
The Back-End DTI: This DTI includes all other debts you may have, such as credit cards or car loans. You want a back-end DTI of 36% or less. A simple way to improve this DTI is to pay down your debts to creditors.
How do you calculate your DTI ratio? You can use this equation for both front-end and back-end DTIs:
DTI = total debt / gross income
7. Budget for Extra Costs
There are a lot of little costs that go into buying a house that are overlooked by new home buyers all the time. Though there are some things, such as sales tax and home insurance, that can be wrapped into a home loan and monthly mortgage, there are several little things that cannot be included into the home-buying package and need to be paid for out of pocket.
Though these items can range in price depending on the area, size and cost of the house your buying, here is a list of extra costs you should consider (not all inclusive):
- Home Appraisal Fee
- Home Inspection Fee
- Geological study
- Closing costs*
- Property taxes**
- Home insurance**
- Utility hookup/start fees
- HOA fees
- Home remodeling/updating
- Existing propane gas
- *Closing costs can sometimes be wrapped into the home loan, depending on the agreement with your lender.
- **Property taxes and home insurance can be paid separately or your lender could include it into your monthly mortgage payment.
8. Don’t Close Old Credit Card Accounts Or Apply for New Ones
Closing a credit card account will not raise your credit score. In fact, in some cases, it may actually lower it. Instead, try to pay down the balance as much as you can, while continuing to make your monthly payments on time. If you have an old credit card you never use anymore, just ignore it, or at least don’t close it until after you have purchased your new home.
Opening new credit cards before buying a home is also not a good idea. You don’t want creditors checking your credit or opening new cards under your name, as you may lose some points on your credit score.
The absolute worst thing you can do is max out one of your credit cards, even if the limit on the card is low. If you do, your credit score may plummet. Try tackling your credit cards with the highest interest rate first, then as one gets paid off, focus on the next card until you’re free and clear.
9. Have A Solid Employment History
If you haven’t gotten the picture yet, lenders like consistency, including your employment history. Lenders like to see a borrower with the same employer for about two years.
What if you have a job with an irregular or inconsistent pay schedule? People with jobs such as contract positions, who are self-employed, or have irregular work schedules can still qualify for a home loan. A mortgage known as a ‘Bank Statement’ mortgage is becoming rapidly popular with lenders as more self-employed or what has been referred to as the ‘gig economy’ has taken off.
10. Know the Difference Between a Fixed Rate and an Adjustable Rate Mortgage
The difference between these two types of mortgage rates really lies within their names. A fixed rate loan is exactly that, an interest rate that will never change the moment it’s locked in. You will pay the same amount the very first month you pay your home loan and will continue to pay that same exact amount over the course of thirty years (or however long the loan term is).
An adjustable-rate mortgage (ARM) is typically a mortgage that starts out as a lower rate than fixed interest rates but then is adjusted each year typically resulting in a rate higher than a fixed rate. A 5-1 ARM is a popular mortgage offered by lenders, which is a hybrid between fixed and adjustable rate mortgages. Your mortgage would start out at a lower fixed rate for the first five years, then after that time period has elapsed, the rate would then be adjusted on an annual basis for the remainder of the loan term.
If your plan for 2019 includes selling your home, you will want to pay attention to where experts believe home values are headed. According to the latest Home Price Index from CoreLogic, home prices increased by 4.7% over the course of 2018.
The map below shows the results of the latest index by state.
Real estate is local. Each state appreciates at different levels. The majority of the country saw at least a 2.0% gain in home values, while some residents in North Dakota and Louisiana may have felt prices slow slightly.
This effect will be short lived. In the same report, CoreLogic forecasts that every state in the Union will experience at least 2.0% appreciation, with the majority of the country gaining at least 4.0%! The prediction for the country comes in at 4.6%. For a median-priced home, that translates to over $14,000 in additional equity next year! (The map below shows the forecast by state.)
So, how does this help you list your home for the best price?
Armed with the knowledge of how much experts believe your house will appreciate this year, you will be able to set an appropriate price for your listing from the start. If homes like yours are appreciating at 4.0%, you won’t want to list your home for more than that amount!
Biggest mistakes homeowners make is pricing their homes too high. Then reducing the price later when they do not get any offers. This can lead buyers to believe that there may be something wrong with the home, when in fact the price was just too high for the market.
Pricing your home right from the start is one of the most challenging parts of selling your home. Once you decide to list your house, let’s get together to discuss where home values are headed in your area!
The price of any item (including residential real estate) is determined by the theory of ‘supply and demand.’ If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.
The supply of homes for sale dramatically increases every spring, according to the National Association of Realtors (NAR). As an example, this is what happened to housing inventory at the beginning of 2018:
Putting your home on the market now, rather than waiting for increased competition in the spring, might make a lot of sense.
Buyers in the market during the winter are truly motivated purchasers and they want to buy now. With limited inventory currently available in most markets, sellers are in a great position to negotiate.
When homebuyers begin their research, they want to see all their available options! In many cases, they will include both new construction and existing homes in their search; but is a new construction home really the house of their dreams?
According to a recent survey by Zillow, of the 38% of total buyers that added new construction to their list, only 11% ultimately purchased a newly constructed home!
They added that 71% of these buyers are repeat buyers who are financially secure, with 45% using the money from the sale of their previous homes to make a purchase.
Below are some reasons why buyers are interested in purchasing a new build:
- Everything in the house is new/never used (49%)
- To be close to family (41%)
- The home is the best value for their money (37%)
- Appealing home features (34%)
- Desirable location (34%)
So, then why did most of the buyers surveyed choose not to purchase a new home?
Buyers could not find new construction in the desired neighborhood, and some felt that new construction is not established (e.g., landscaping, community, neighbors).
Buyers face the end of a lease or sale of their previous property and could not wait for a house to be built.
Some buyers felt that new construction base prices were deceiving. Adding upgrades and HOA fees no longer made the home fit in their price range.
For some buyers, new construction homes are too “cookie cutter,” and models are limited. Others feel that the charm and uniqueness of an existing house trumps one that’s never been lived in.
Not all buyers are looking for a newly built house! There are many buyers looking for “the charm and uniqueness” of an existing home. If you are considering selling your house, don’t wait! Let’s get together to come up with a plan to feature the charming details of your house to future buyers.