What First Time Home Buyers Should Understand About the Real Estate Market for a New Home

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For home buyers, the real estate market today offers more choices than ever before. From options for first time home buyers to the many modern home design choices offered by master planned community developers, there are now more options for home buyers. In fact, some may say that the current market is a “buyer’s market,” meaning that now is the time to purchase a home.

Part of the process for many first time home buyers comes from understanding the real estate market for a new home. For example, a home that has many offers from buyers will likely go to the highest bidder with the fewest seller concessions. Location also factors into the real estate market for a new home. Some areas that are more desirable to live in will likely have higher median home prices, especially for houses in master planned communities. Finally, the time of year also impacts the real estate market for a new home or a resale, as both may be priced higher during optimal moving seasons (spring and summer).

Those are buying a new home also need to understand the differences between new homes and resales. Resales have been previously lived in, and although these properties may have nothing wrong with them, they are more likely to require updates and repairs if the previous owner has not already done so. New homes, however, present an advantage for first time and repeat buyers. They often require no updating from the get go, and working with a home builder allows buyers to choose layout, design, fixtures, and other interior and exterior features.

New homes may or may not require a down payment, especially if they are brand new constructions. For many home buyers who don’t qualify for an FHA loan, this is an advantage because they won’t have to come up with a 20% down payment. As a result, looking for a home in a planned community may be more feasible for these buyers. Planned communities also offer the advantages of community amenities and at times a park-like atmosphere with plenty of green space. These communities are also generally “walkable,” meaning they have sidewalks and parks to promote an active lifestyle among residents.

Above all, home buyers should plan carefully before making any purchase. They should have a clear understanding of what they want and don’t want in a home. Working with a real estate agent and a home developer is the best way for a family to find the right kind of home for their lifestyle. Visit here for more information.

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