Need Home buying 101 Help - Pre- georgia (Atlanta: appointed, real estate)

[mccray916]

After almost settling on the McCar Lakeside Preserve community, I realized that what I don't like besides all the negative posts about McCar is that the only houses they build in my price range all have brick fronts with siding on the other three sides. So I've decided to look elsewhere. Does anyone know anything about Benchmark Homes? They build really beautiful homes. They are building a new development in South Fulton near the Wolf Creek Country Club. The community is in the pre-sale phase with starting prices in the high 200s.

What kind of builder incentives should i be looking for in a community that is in pre-sale phase with only about 8 homes occupied by owners thus far. Does anyone know a good buyers agent for South Fulton area that could negotiate the best possible purchase price for me. Also, would I still be able to use a DPA program such as Nehemiah if I have my own buyers agent? What should I look for in selecting a lot in a pre-sale community?

[lastminutemom]

I would be very leery about buying a new home that isn't built in a incomplete neighborhood.

If you must have brand new, buy one of the last homes in a neighborhood where the promised amenities have been built. Also, check carefully for the foreclosure rate. You don't want to end up in a neighborhood that is on the decline.

The last real estate slow down in Atlanta caused lots of heartaches for people doing what you are suggesting. They were one of the first buyers only to have the builder go under or give up and sell the land off cheap. The new owners would build much smaller, less expensive homes which immediately dragged the value of the existing homes down.

I would be very hesitant to do as you described.

[bornandraised atl]

You will still be able to use Nehamiah if you have a buyers agent - it is part of the FHA program...I would think carefully about builders who offer huge incentives for a pre-sale. The reason being is that you want to try to protect your future equity - for example if you are looking for a pre-sale and the builder offers you a huge incentive such as deep discount in price - who is to say they won't offer a future homeowner a larger incentive after you close? If you buy for 225,000 then six months later the builder wants to move inventory and they sell your same model for 200,000 for a discount - this can potentially hurt your equity position in your home.

This is a real possibility - but don't let it affect your decision. It is a great to buy a home now and the old standards still apply - location, features of the home, comparable properties, and how long you want to own that particular house.

Good luck.

[scgraham]

Originally Posted by mccray916

After almost settling on the McCar Lakeside Preserve community, I realized that what I don't like besides all the negative posts about McCar is that the only houses they build in my price range all have brick fronts with siding on the other three sides. So I've decided to look elsewhere. Does anyone know anything about Benchmark Homes? They build really beautiful homes. They are building a new development in South Fulton near the Wolf Creek Country Club. The community is in the pre-sale phase with starting prices in the high 200s.

What kind of builder incentives should i be looking for in a community that is in pre-sale phase with only about 8 homes occupied by owners thus far. Does anyone know a good buyers agent for South Fulton area that could negotiate the best possible purchase price for me. Also, would I still be able to use a DPA program such as Nehemiah if I have my own buyers agent? What should I look for in selecting a lot in a pre-sale community?

Put incentives in perspective and go for a lower price; there are many avenues to pursue when seeking a better price & terms.

Is this the community: Canaan Ridge at Wolf Creek ?

[mccray916]

Thank you very much. I just spoke with someone at Canaan Ridge and they only build to order which is why they only have only built about 7 homes out of 86 planned. They require 5% down and the only incentives offered is 3 1/2% off which can be used for upgrades or closing. I was told that the discount could not be used off the cost of the home.

Originally Posted by scgraham

Put incentives in perspective and go for a lower price; there are many avenues to pursue when seeking a better price & terms.

Is this the community: Canaan Ridge at Wolf Creek ?

[mccray916]

Thank you so much for the warning. I did check the builder out with the BBB and they've only had 1 complaint---highly unusual. They also only build to order and so far they've only built about 7 of the 86 homes planned for the community. Considering the market, it will take quite a while for them to build 86 homes to order.

I was very disappointed that the builder is not offering any pre-sale pricing. They're only offering 3.5% that can be used for upgrades or closing--but not off the price of the home.

Originally Posted by lastminutemom

I would be very leery about buying a new home that isn't built in a incomplete neighborhood.

If you must have brand new, buy one of the last homes in a neighborhood where the promised amenities have been built. Also, check carefully for the foreclosure rate. You don't want to end up in a neighborhood that is on the decline.

The last real estate slow down in Atlanta caused lots of heartaches for people doing what you are suggesting. They were one of the first buyers only to have the builder go under or give up and sell the land off cheap. The new owners would build much smaller, less expensive homes which immediately dragged the value of the existing homes down.

I would be very hesitant to do as you described.

[scgraham]

Originally Posted by mccray916

Thank you very much. I just spoke with someone at Canaan Ridge and they only build to order which is why they only have only built about 7 homes out of 86 planned. They require 5% down and the only incentives offered is 3 1/2% off which can be used for upgrades or closing. I was told that the discount could not be used off the cost of the home.

If the builder is holding the prices, this is good for future homeowners. As the other poster pointed out, one should proceed with caution in newly developed communities.

[mccray916]

Thanks so very much for your insight and wisdom!

Originally Posted by bornandraised atl

You will still be able to use Nehamiah if you have a buyers agent - it is part of the FHA program...I would think carefully about builders who offer huge incentives for a pre-sale. The reason being is that you want to try to protect your future equity - for example if you are looking for a pre-sale and the builder offers you a huge incentive such as deep discount in price - who is to say they won't offer a future homeowner a larger incentive after you close? If you buy for 225,000 then six months later the builder wants to move inventory and they sell your same model for 200,000 for a discount - this can potentially hurt your equity position in your home.

This is a real possibility - but don't let it affect your decision. It is a great to buy a home now and the old standards still apply - location, features of the home, comparable properties, and how long you want to own that particular house.

Good luck.

[masonbarge]

I've done very well buying and selling my homes over the past 30 years. But I am not a professional in the field. Also, I have never (and would never) buy a house in a new subdivision.

My #1 consideration in buying a house: How easy will it be to resell it?

And the #1 consideration in resale value, as any agent will tell you, is location. However, you should also avoid properties with known or potential defects: For example,
Located on a busy street;
In the flood plain;
Lack of curb appeal;
Weird floor plan;
Other noise or permanent environmental features, such as noise from a nearby interstate or airport, cut-through traffic, major power transmission lines in the yard or overhead.

I have always paid a premium to get a house that is desirable, even if I got a smaller house than I wanted or could afford. If you don't have to fight other people to buy it, you could be making a better choice. Take your time and wait for a gem, that's my advice.

[mccray916]

Thank you so very much for sharing your wisdom. How can I find out if the Camp Creek/Lakeside Preserve community is in a floodplain?

Originally Posted by masonbarge

I've done very well buying and selling my homes over the past 30 years. But I am not a professional in the field. Also, I have never (and would never) buy a house in a new subdivision.

My #1 consideration in buying a house: How easy will it be to resell it?

And the #1 consideration in resale value, as any agent will tell you, is location. However, you should also avoid properties with known or potential defects: For example,
Located on a busy street;
In the flood plain;
Lack of curb appeal;
Weird floor plan;
Other noise or permanent environmental features, such as noise from a nearby interstate or airport, cut-through traffic, major power transmission lines in the yard or overhead.

I have always paid a premium to get a house that is desirable, even if I got a smaller house than I wanted or could afford. If you don't have to fight other people to buy it, you could be making a better choice. Take your time and wait for a gem, that's my advice.