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Buying a Used Home? It's Not About Price. It's About The Cost.

Written by Posted On Thursday, 08 November 2018 13:53

If you are thinking of buying a resale home, be prepared to spend a lot of time shopping resales that need renovation and/or heavy on deferred maintenance.

Orlando Realtor Kathy Llamas showed resales to a couple for almost two months and was about to lose them to a 'we decided to wait' excuse. They kept seeing homes they liked, but could not afford after remodeling or renovation estimates were proposed.

For example, if they looked at home for $300,000 and the renovation estimate came in at $60,000, the $360,000 price was too high either in fact based on a mortgage approval or their budget.

Kath's prospects did not want a new home, but Kathy suggested they look at one with a base sales price of $300,000 just to see and understand what the buyers could get for their money. for a home ready to move in with no other work needed.

They looked at two new homes, bought one in two days, and closed in 30 days. It happens. 

What also happens is resale buyers after actually seeing, touching and feeling what they can get for the actual money they want to spend, will make more informed and therefore more confident offers on the resales they see. 

So, my advice: Tell your Realtor that while you are interested in shopping resales, you would like to see at least one new home in the price range of the resales you will be shopping. Regardless of the decision you then make you will know more about 'why'because thanks to the fixed base price of the new home you toured, you have a much better idea of the value of the resales you see. 



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David Fletcher, NHCB

David Fletcher is a co-founder and CEO of New Home Co-broker Academy LLC., an online e-commerce business. Visit David's website to take his famous 3-hour online course, How To Build  A New Homes Niche, to become a certified New Home Co-broker (NHCB). More than 5,000 graduates. Content is based on his long career and onsite sales success working with both builders and Realtors to list and sell more than $3 billion in new construction. If you are a broker who wants to offer your agents a way to add new homes to their resale inventory and home shoppers, this is your solution. 

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