Real Estate Assistance in Gainesville, FL

We created a robust summary of how having a REALTOR® in-house benefits you as a buyer for peace of mind. The pros and cons of using a REALTOR® for new construction are varied and depend on multiple factors. Here is our detailed yet concise breakdown:

Pros

• Invaluable Guidance: REALTORS® can offer valuable insights throughout home buying, including navigating the complex world of new construction design, inspections, and warranties.
• Market Knowledge: REALTORS® provide information about the local market and help identify potential properties that fit your needs and budget.
• Negotiation Power: REALTORS® are ethically bound to provide you with the best possible price, terms, and potential additional incentives from the builder.
• Rich History with New Construction: REALTORS® with experience in new construction will know past, current, and future incentives builders offer.
• Peace of Mind: A REALTOR® by your side throughout the process can provide a less emotional and sales-driven perspective than a builder’s sales representative, facilitating a smoother purchase process.
• No Extra Cost: REALTORS® don’t cost you more than a builder’s agent. The builder already earmarks the expected cost of a real estate agent in the price of the home.

Cons

• Lack of Specific Knowledge: Builders’ sales representatives may have more in-depth knowledge of your desired community and home models that fit your needs and preferences.
• Insight into Multiple Communities: Builders can better inform you about all your options across the multiple communities where they build homes.
• Quality Comparisons: Builders have an insight into their product quality compared to competitors’ products that a REALTOR® does not have.

At Seanote Construction, you get to work with a REALTOR® that also acts as the builder’s agent, which gives you both the building knowledgeable advice plus the ethics and high standards of the National Association of REALTORS®.

Whether you should build a new house or buy an existing one is a multifaceted decision, depending on various factors, such as your budget, timeframe, location, and personal preferences. Our company provides excellent services for building custom homes, with many positive experiences as testified by our clients’ reviews.

Pros

• Personalization: You get to decide everything about your home, from the floor plan to the color of your walls. On the contrary, existing homes might not match your style and need renovation.
• Modern Features: New homes have updated designs, energy efficiency, and the latest technology. Existing homes might have outdated designs and features, which could be less energy efficient.
• Less Maintenance: Everything is new and generally requires less maintenance for the first few years. On the other hand, since an existing house and its components have been in use, they might need more care or an immediate replacement.
• Guaranteed Peace of Mind: With a new home, you know everything complies with safety regulations. Acquiring older homes may expose you to certain health risks that could have gone unnoticed by previous owners. For example, residences constructed before the 1970s may contain lead-based paints, posing a significant health threat, especially if you have children.
• No Stress or Competition: The search for an ideal property can be demanding and stressful. The dynamics of the real estate market usually don’t favor the buyers. Houses can receive numerous excellent offers above the listed price in days. This competition and urgency may lead to inflated prices, bidding competitions, and several unsuccessful offers.

Cons

• Time: The construction process can take 9-12 months, sometimes even longer.
• Unexpected Delays: There could be unforeseen delays due to various reasons like weather or shortages. When buying an existing house, once you find the right home, you can move in as soon as the transaction is complete.
• Limited Location Choices: Most new construction happens in areas in development, which might not be ideal for people who prefer living closer to city centers. Existing homes are typically in established neighborhoods with a community history and reputation.
• Higher Cost: Existing homes usually cost less upfront than new homes since, for a custom house build, you’ll need to factor in costs for building materials and construction costs, loans for the land and construction, new major appliances, permit and utility connection fees, site preparation, excavation, and landscaping costs.
• Landscaping from Scratch: Achieving the allure of mature landscaping from a new home could take years. On the other hand, existing homes likely come with mature landscaping, saving you the costs of starting from scratch. If you’re a fan of mature trees, you may prefer buying over building a home.

Closing costs are the fees incurred to finalize a real estate transaction. In Florida, closing costs are typically divided between the seller and the buyer, with the buyer often bearing a more significant portion. However, the case is different when buying a custom home from a builder.

When buying a custom-built home in Florida, expect your closing costs to vary depending on factors such as the price of your home, the location, and the terms of your loan, if you have one. This variation should range from 2% to 5% of the home’s price. Therefore, it’s essential that you plan for these expenses in your budget.

Some of the closing costs associated with a new construction home are the following:

• New Construction Escrow Account: A third party provides us with an escrow account to facilitate the large transactions being moved between different entities to build your custom home. These transactions include payments for construction costs, real estate taxes, and insurance.
• Loan Origination Fees: If you need a loan to purchase your new home, you must pay your lender a fee for processing your new loan.
• Appraisal and Survey Costs: Lenders may require you to pay for a property appraisal to determine the up-to-date value of your new property. Additionally, a survey is indispensable to establish the exact boundaries of the property and avoid future legal issues and unforeseen expenses.
• Title Search and Insurance: Even without a previously existing building, a vacant plot of land has its past. The land may have been transferred between several owners; thus, future ownership complications may arise, similar to those found with a pre-existing house. This service ensures that your property is free of any liens or claims and protects you and your lender against future claims to your property.
• Recording Fees: Your county charges these fees to record the new deed and mortgage.
• Home Inspection Fees: Even with new construction, a home inspection is generally a good idea to ensure everything is up to code and there are no issues with the home.
• Property Taxes and Insurance: These are usually prorated and paid in advance at closing.