Austin Texas Real Estate -- What's Smarter... Buying an Austin New Home or a Resale Home?
Hello,
Which is a better financial deal for you, buying new Austin Texas Real Estate or a resale home?
The majority of Austin homes for sale are resale homes, but about 1 in 5 homes SOLD every month are new builder homes. Your "best" choice, of course, is that it depends on what you need and where you want to live – and how much financial ‘risk’ can you tolerate? See more information at our home page.
Resale Austin homes are typically much closer to town or your job, are in more established Austin neighborhoods, more landscaping done, and typically there's more decorating done on them already. When you find a house you love – you can simply buy it (where as you might have to wait 2-3 months for an Austin new builders home to be completed.) They often have older floor plans, smaller bedrooms, not as modern kitchens and family rooms - and outdated things like appliances, cabinets, countertops and fixtures.
Resale home buyers "typically" end up with more out-of-pocket cash expenditures and maintenance, as older appliances, older air conditioning, heating, roof, exterior siding, and mold issues typically need repaired, replaced or cleaned – so you’re fixing or paying a handyman/contractor - more frequently. And, you are "risking", based upon the age of the house and it's condition, that you might have some major expenses - like replacing an air conditioner or roof leak years after you buy the home. Make sense? This can 'break' a first-time homebuyer and really screw up anyone's finances and budget!
Austin New homes, on the other hand, offer newer floor plan designs, more ‘innovative’ use of interior space, more modern efficient cooling and heating systems, new appliances with warranties - and offer you the “choices” to design your new kitchen cabinets/counters, carpets and flooring, and paint colors – so you’re buying or building the ‘exact’ house you really wanted. The biggest ‘issue’ with new homes is that you may have to wait to buy a new house – or go through a “ping pong ball lottery” to get a premium lot or location, not unless the builder already has ‘inventory’ homes available (most do!) You’ll typically spend less cash on repairs and have less maintenance on new homes (everything is brand new!) and the builder warranty covers most everything else. This "lower risk" makes new homes a bargain for anyone - young or older.
Austin new home builders are offering fantastic mortgage financing rates too, so you can usually get a far LOWER interest rate - than current market interest rates. Special financing, virtually no closing costs out-of-pocket (ask me which builders offer this!) “builder paid points” and $0 Down loan options make Austin new homes a great buy! The draw back is that you typically have to get a loan through their in-house lender to get extra incentives and the “special” design center bonus cash.
Austin new home builders typically have a tougher time financing “damaged credit” buyers who may have lower credit scores, high debt ratios, stated-income and lower incomes… (This is often the most "frustrating" thing for new buyers, when you pick out a house model and the lot - but then their in-house lender can't get you financing on the home you wanted so much!)
Unless you really want to buy a home in a location where there are no new homes, then I would HIGHLY RECOMMEND buying a new Austin home instead.
With the amazing financial incentives and BELOW MARKET interest rates - like 3.75% on 30-Year loans (ask me which builder offers that!) and the peace of mind you get knowing that all your appliances and the whole house is covered by a Builders Warranty - how can you go wrong? I highly recommend new homes to buyers.
Call me at (512) 289-9900 or email me at jeff@Home-Deals.net and we'll discuss Austin new homes and resale homes further.
Popular areas to search for houses nearby include Austin Texas Real Estate, northwest Austin homes in Cedar Park Real Estate and homes north of that in Leander Texas Real Estate.
Other homes in popular Round Rock Real Estate, going further up Interstate 35 houses for sale in Georgetown Texas Real Estate or just further south of Round Rock in the Pflugerville Texas Real Estate market.
What’s the #1 MISTAKE people make and the #1 COMPLAINT to the Texas Real Estate Commission when buying or selling Austin homes; especially buying Austin new homes?
Shockingly, it’s that there was confusion on the Purchase Contract and you got “screwed financially” because you didn’t understand or were not clear on the Contract you signed! Amazingly, only a small fraction of those complaints were filed against experienced Austin Texas real estate agents or experienced Austin Texas Realtors. The majority of the complaints in 2007 and the majority of people who get pissed during and after the closing used inexperienced or part-time Realtors - or NO Austin Realtor at all (…especially buying new homes in Austin TX!)
Wouldn’t you want experienced Austin Texas real estate agents sticking up for YOUR legal rights when the Sellers or Buyers decides to try to “screw you over” financially - or if there’s a problem on the mortgage loan? Did I mention that I’ve personally closed nearly $100 million in real estate and mortgage loan transactions…and have always been able to negotiate or resolve every single problem we’ve encountered since 1998. I’m not saying that to brag, but instead to let you know that a professional Austin Texas Realtor helping you is absolutely mandatory, especially when problems come up! If you were accused of murder, would you hire a cheap part time attorney to help you? Don’t forget, a Buyer pays $0 real estate commissions as those are customarily paid by the Sellers and the Austin new homes builders.
Thanks,
Jeff
(512) 289-9900