We have been seeing a trend in todays market where homeowners that bought new construction just a year or two ago are having problems selling their newer homes.  Why is this?

The reason we are seeing new homeowners having difficulty reselling their home in a new neighborhood is a bit complicated.  However, the biggest reason is that when they go to sell their home - there is still a lot of new construction going on in that neighborhood or nearby neighborhoods for the same price or less. The current homeowners cannot get their home sold without taking a loss because buyers are selecting brand new homes with big incentives.

If you think about it, it makes sense.  If you were a buyer and could get a brand new home for the same price or less than a resale home only a couple years old, you are probably going to go with the brand new home that has no scratches, dents, stains or wear and tear.  In addition to this, builders are offering huge incentives to buyers with closing costs, interest rate buy downs, improvements paid by builder that resale home owners cannot afford to offer without taking a huge loss.

This has definitely been a trend for the last 8 to 12 months and I really don't see it getting better soon.  You see, when the builders are offering their home at the same price as you paid for yours, but now also offering huge buyer and buyer agent incentives, the buyer is likely going to go new construction.  

So what do you do when you are thinking about buying a new home? Buy new, but buy smart.  Don't buy a track home in a large development with a lot of future growth or in an area where there are lots of subdivisions with similar pricing and homes available, even if you are buying a bit more expensive home than a track home.  Buy a semi-custom home where there are limited options in that price point in that city or area of interest.  This is especially important if you think there is any chance you will only be in the home a couple of years.  

Nothing breaks my heart more than seeing a homeowner need to sell for an unexpected job change, family life change, or personal health and not be able to get it sold due to new construction competition.

If you are thinking of buying a new home and need guidance, give us a call.  My team and I are on standby, 7 days a week, ready to help you take the smoother road to sold.