Are you buying a home for the first time? If so, you’re likely going through a crash course in real estate when it comes to mortgages, down payments, closing costs, and taxes — and that’s not even getting started on your search into the homes themselves! During your search, you’ll likely find foreclosed homes, resales, and new constructions in your local real estate listings. While it may sound like you’re getting the same thing with each property type, there are plenty of differences that can mark each one.
So just what are you getting when you buy a new construction? And what is the difference between a resale and a foreclosure? Here are some of the basics on these types of homes and what to look for when you want to make a purchase.
A new construction is exactly what it sounds like — a newly built home that has not been lived in before. New constructions may be part of a development, or you may have a new construction built onto a piece of land that you have purchased. One of the benefits of a new home is that you have the chance to customize its build, floor plan, and features. Some people don’t like new homes because they are built very similarly to one another and may lack the character or charm that some older houses have.
Resales are homes that have been lived in previously. Some resales aren’t very old and haven’t had very many previous tenants. Others may date back several decades or even centuries. Resales are popular because they can cost less than a newly constructed home. However, they also may need repairs, especially if they are sold “as is,” or upgrades if their fixtures are out of date. The majority of homes purchased in the United States are resales.
You may find foreclosed homes as you browse real estate listings, and you’ll especially notice that many of them are far below the average home price for a particular area. A foreclosed home is one that has been repossessed by the bank or other lender, often due to non-payment. While some foreclosures can be great deals for first-time home buyers, others come listed as “Buyer Beware.” There may be problems with the home if it has been neglected for a long time or if the previous tenants have caused any damage to it.
As you browse these listings, you’ll likely see the names of Realtors associated with these homes. Working with a Realtor of your own, however, can give you someone to act as a buffer, so to speak, to ensure that you get a great deal. Not only are Realtors skilled in negotiating real estate transactions, but they also may have a specialty in the real estate industry that could help you make an educated home buying decision. Whether you want to find foreclosed homes and resales only or you’re looking to build an entirely new property, a qualified Realtor can make the process run a bit more smoothly.