Oklahoma City Commercial Real Estate
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Oklahoma City Commercial Real Estate |
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Edmond Real Estate Inc. As a note of caution, you should: Never visit new home communities without your real estate agent or buyer broker present. The builders usually have a policy requiring the Realtor to be present the first time you visit or they will not agree to pay them to represent you as your buyer agent. This is very important to you since there are many issues to watch out for when buying new homes or new construction property from a builder. Since professional new home Realtors are trained to know what to watch for, you should make sure that they are always informed of your house-hunting plans. NEGOTIATING WITH HOME BUILDERS When you speak to a site representative at a builder's model home, you need to understand that their objective is different from yours. Their obligation is to get the builder the highest amount of money for a given home and to close it in the quickest possible time. You are at a disadvantage from the beginning since they have knowledge of all inventory, specials (announced and unannounced) and what is possible in negotiations. Therefore, you would be very wise to enlist the services of an expert buyer's agent specializing in new construction. Since all builders have these fees built in to their marketing budgets, it costs you nothing extra and will probably save you thousands of dollars. BUILDING NEW CONSTRUCTION Sometimes, it is possible to find a completed home being offered by a builder at a substantial discount over the latest official "new build" price list. These "specials" are offered because the builder must pay interest on the construction loan once the property is complete and they do not want the property sitting vacant. If you can find one of these properties that you think you might want to buy, make sure that there are no specific reasons why other buyers may have rejected the property -- such as backing up to a busy traffic street or a sewage system runoff nearby. If you need to wait until the builder can construct your new home, then be prepared to wait four to six months depending on your price range. Custom homes can take up to a year to build, so be prepared. You may find it best to locate a short-term rental property while you are waiting for completion. |
Edmond Oklahoma Home Buying Tips and FAQs
How to choose your Builder
Below is a list of Frequently Asked Questions.
Click on a question to take you to the answer. if you have a question that
is not on the list, feel free to
contact us
and we will answer your question in a timely manner. 1) The Advantages of a Local New Home Builder.A Local Builder will usually have a plan just right for you. They can also customize it to meet your needs. A Local Builder almost always has a better product than the national builders. They don't have near the overhead, therefore allowing you more bang for your buck. Also if you have a plan in mind the local builder will help you to achieve your goal. They usually have land available for you to build on. A Local Builder is considered a custom builder. Don't let that fool you. Many have houses available for you to move into now. Custom homes usually appreciate faster than National builders homes. It is worth it to you to shop and compare the Local Builder to the National Builder. We promise you will be amazed! 2) How do I really know Quality and Value?When examining a home, look at the quality of the
construction features; look at the quality of cabinetry, woodwork, paint and
trim; and ask the builder as many questions as possible. A good builder will
take their time to answer all your questions.
3) Questions to ask the Builder.How long have they been in business?
4) What about a Mortgage? Where do I Start?The answer to this has a lot to do with your income
and the amount of your debt. As a rule of thumb, most home buyers purchase
homes that cost between 1.5 and 2.5 times their annual income. For example,
a home buyer earning $40,000 per year would buy homes costing between
$60,000 and $100,000. Conventional Mortgages A conventional mortgage is one that is not insured
or subsidized by the government. Lenders typically require a 20% down
payment, but offer conventional loans with lower down payments if the home
buyer purchases private mortgage insurance. They usually have a time frame
of 15 to 30 years at either fixed interest or adjustable interest rates. Other types of conventional mortgages A balloon mortgage is a non-amortized loan. In other words, the principle and interest payments do not pay off the loan. Some balloon mortgage loans may have a principle and interest payment that is calculated as if it would pay off the loan in 30 years, but the loan comes due in 5 or 7 years. The lenders usually renew the loan at that time if certain conditions are met.
The Federal Housing Administration (FHA) operates several low down payment mortgage insurance programs that buyers can use to purchase a home with a down payment of 5% or less of the cost of the home. The most frequently used FHA program is the 203(b) program, which provides for low down-payment mortgages on one to four family residences. The maximum loan amount for a one-family home ranges from $67,500 to $152,362 depending on the local median price.
If you are a veteran or active duty military personnel, you may be able to obtain a loan guaranteed by the Department of Veteran Affairs (VA). VA guaranteed loans require little or no down payment.
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