Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-21-2014, 04:03 PM
 
398 posts, read 742,309 times
Reputation: 238

Advertisements

Hi! I am planning on buying a townhouse soon.. it is brand new construction where I can purchase it now and it will be built and ready for delivery in the Spring! Obviously being a FIRST TIME home buyer, I know squat and have a few questions..

1. There are 3 different design I can go with. 2 has no car garage, 1 does. I am leaning towards the car garage (2 car garage) plan but my question is.. is it REALLY necessary? This property is definitely for investment as it won't be my long-term place.. I'm thinking of the resell aspect. Does it really add much value??? Aside from the more space, car protection from hot summers (I am in NC), yada yada, does it really add to the price tag?

2. The community is built by Ryan Homes.. is it better to go with a buyers agent or seller in this case? How do I find an agent?

3. I was contacted by Ryan Homes' Sales and Marketing guy.. should I proceed with him first? He's not an agent right? I would meet up with him but I don't want to seem clueless = not serious and I want him to take me seriously..

Serous answers much appreciated! I would get help from my family but they are far away and I want to just do some research on my own.

Thanks
Reply With Quote Quick reply to this message

 
Old 10-21-2014, 04:13 PM
 
8,539 posts, read 12,269,097 times
Reputation: 16432
Quote:
Originally Posted by K.Uni View Post
This property is definitely for investment as it won't be my long-term place.. I'm thinking of the resell aspect.
If you're just looking at it as an investment, then you're probably better off not buying it. There are much better/easier investment opportunities to consider than real estate.
Reply With Quote Quick reply to this message
 
Old 10-21-2014, 04:26 PM
 
Location: Denver CO
24,204 posts, read 19,026,046 times
Reputation: 38265
Are you buying strictly as an investment or as something you plan to live in for a while and then sell and upgrade to something bigger?

1. Personally, I strongly prefer an attached garage. Granted, I live in places with real winters and snow, but even so, it's also nice for extra storage, plus if you come home late at night at all, it feels a bit more secure.

2. You should get your own buyer's agent. Ask for local referrals, check with coworkers, friends, etc. Talk to a couple of people and see who you click with. Try to find someone who has some experience with new construction.

3. The Ryan Homes sales person is THEIR agent, not yours.

Have you talked to a mortgage broker yet? Ryan Homes probably has a preferred lender but you are not obligated to use them. Plus you should talk to someone first so you have a good idea of exactly what you can afford for both the down payment and all the closing costs and for your monthly payment.

With new construction, the listing price is the base price and will include the very base level of all the finishes, appliances, etc. If you want to upgrade things, you can expect to pay 10%-20% above that base price, very possibly more once you add in things like nicer flooring and cabinets, granite, stainless appliances, etc. You may not want all of those things, but esp. if you are buying with a eye towards resale sooner rather than later, nicer finishes are going to be important. There may also be a plot premium if you choose a nicer location within the community.
Reply With Quote Quick reply to this message
 
Old 10-21-2014, 04:40 PM
 
398 posts, read 742,309 times
Reputation: 238
Quote:
Originally Posted by jackmichigan View Post
If you're just looking at it as an investment, then you're probably better off not buying it. There are much better/easier investment opportunities to consider than real estate.
Quote:
Originally Posted by emm74 View Post
Are you buying strictly as an investment or as something you plan to live in for a while and then sell and upgrade to something bigger?
I am planning to buy it to live in it for awhile, then sell and upgrade I am young now, with no kids so I plan to rent out the other bedrooms. Since I am renting now, I might as well pay that towards a mortgage, no? What other better/easier investment opps do you have in mind

**edit- also i do want to mention, this is in a HUGE developing area so it's best to grab now while it's cheap! I see REALLY good potential here so that is why I want to buy**

Thanks emm for your answer.

Regarding number 3, do you still I suggest I meet with him beforehand?
Reply With Quote Quick reply to this message
 
Old 10-21-2014, 04:40 PM
 
Location: El Dorado Hills, CA
3,720 posts, read 9,954,719 times
Reputation: 3927
I'm surprised you would buy a new home for investment purposes. New homes have a pretty steep premium that some homeowners will pay because, well, they want a new home. Most tenants will not pay that much extra vs. a similar home that is well maintained nearby.

Home with garages are easier to re-sell later if needed. '
Reply With Quote Quick reply to this message
 
Old 10-21-2014, 04:45 PM
 
Location: Denver CO
24,204 posts, read 19,026,046 times
Reputation: 38265
Quote:
Originally Posted by K.Uni View Post
Regarding number 3, do you still I suggest I meet with him beforehand?
No! You need to have your buyers agent with you when you first contact Ryan Homes, otherwise, Ryan Homes will not want to pay their commission.
Reply With Quote Quick reply to this message
 
Old 10-21-2014, 04:59 PM
 
Location: 2016 Clown Car...fka: Wisconsin
738 posts, read 993,589 times
Reputation: 1207
If you're planning on moving within a 5 year period, you may want to do the math.

As a buyer, if you want upgrades that are not included in your new purchase, you can expect additional charges;
When you make your offer, you will need a down-payment, potentially tying up a significant amount of cash;
When you close on the property, you will have to pay closing costs which average 3-7% of the purchase price;
While living in the property, you will be paying real estate taxes (which may or may not be deductible);
While living in the property, you will be paying mostly interest and very little principal which will not allow you to build much equity;
When selling the property, (unless you do it yourself), you will have to pay real estate commission and provide a clean title (involving a title search);
While selling the property, it may sit there...for a long time...unsold.

I'm certainly not trying to dissuade you from buying, I just think that sometimes it's worth it to really consider exactly what the costs will be.

RVcook
Reply With Quote Quick reply to this message
 
Old 10-21-2014, 05:14 PM
 
Location: Brentwood, Tennessee
49,932 posts, read 59,572,875 times
Reputation: 98359
Before you rent out those rooms ...

1) Check to see if these townhomes will have an HOA that has covenants that would prevent renting rooms or "subletting."

2) Check your town zoning ordinances to see if they have restrictions on renting.

Get your own agent. You never let the builder's agent "represent" you. They work for the builder.
Reply With Quote Quick reply to this message
 
Old 10-21-2014, 05:18 PM
 
Location: Florida -
10,213 posts, read 14,744,041 times
Reputation: 21845
Quote:
Originally Posted by RVcook View Post
If you're planning on moving within a 5 year period, you may want to do the math.

As a buyer, if you want upgrades that are not included in your new purchase, you can expect additional charges;
When you make your offer, you will need a down-payment, potentially tying up a significant amount of cash;
When you close on the property, you will have to pay closing costs which average 3-7% of the purchase price;
While living in the property, you will be paying real estate taxes (which may or may not be deductible);
While living in the property, you will be paying mostly interest and very little principal which will not allow you to build much equity;
When selling the property, (unless you do it yourself), you will have to pay real estate commission and provide a clean title (involving a title search);
While selling the property, it may sit there...for a long time...unsold.

I'm certainly not trying to dissuade you from buying, I just think that sometimes it's worth it to really consider exactly what the costs will be. RVcook
Good advice! -- Buying (vs Renting), particularly on a short-term basis (5-years) is not what it once was. However, if you decide to buy, you should definitely go with the 2-car garage! No garage or a 1-car garage in a neighborhood with 2-car garages, will invariably be more difficult to sell and will sit on the market longer.

Also, with the clear statement that you 'have a Realtor you are working with', you might ask the developer's sales agent about the advantage/s they can offer (upgrades, lower costs, closing costs) to direct buyers. --- A first-time buyer, will likely be better off with their own Agent, but, it may save you a bundle to at least ask the question before (or in lieu of) showing-up on site with your own agent. (If you ultimately choose to make an offer through your own Agent, they will receive a 2.5%-3% commission that you will indirectly pay -- that's not optional).

You might also want to consider the stage of the overall development. If you are in the early stages and decide to sell within 5-years, you will likely find yourself facing a difficult competition against 'bargain priced' new homes ... from the same Agent you bought from. Plus, new homes can be more of a 'money pit' than many new/first-time home buyers realize.

Last edited by jghorton; 10-21-2014 at 05:27 PM..
Reply With Quote Quick reply to this message
 
Old 10-21-2014, 05:42 PM
 
Location: OH>IL>CO>CT
7,467 posts, read 13,465,024 times
Reputation: 11758
When buying new construction, be aware of those items that you will be buying/adding that the builder might not include, even as an option. And you'll want to clarify with the builder what they do or don't provide. And most are the type you can't take with when you sell later. As you are looking at a townhouse vs SFH, some of these items may not apply.

Landscaping, including grass
Storm windows/doors
Deadbolt Locks
Screen doors
Gutters
Mailbox, House numbers
Curtains, drapes, rods
Shower curtain/door
Electric garage door opener
Garage/Basement shelving, extra lighting
Voice/Data/TV cabling
Ceiling Fans (one of my sellers specifically excluded a fan, and f/p insert, from sale. They took the fan but left the insert !)

Also, items you could take away later, but could be expected to leave:
Washer/Dryer
Refrig/Stove ( Had a buyer insist on stove, which he then gave to a relative the day we moved out !)
Window A/C

Probably more, but you get the idea. You get to be the first. BTDT, 2x.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top