Is this a good deal for a new Ryland home? $185k, $15k in free upgrades, 3% of closing cost covered, but closing cost is 5% if financed through them. $8k tax credit, but that's from the government, not Ryland. I think the earnest fee is 3%. 1.5% down before the home is built and 1.5% while closing. The subdivision blows, but that's not too important to me as long as my neighbors aren't from the hood. I can't tell because not many homes have been sold in that subdivision. No pool, park, anything. Very tiny area, roughly 100 homes in the subdivision. I believe the districts taxes is 3.7%. I going to guess that's pretty high, but might be worth it if the Klein district is really that good. Considering a home from D R Horton or David Weekly which is ten minutes away from that area. Haven't checked them out yet because I didn't have time today, but will go Saturday. Out of the three (David Weekly, DR Horton + Ryland), which home builder builds better quality homes? They're all in the same school district and the houses are priced roughly the same for what I want. I haven't checked out the incentives the other two are offering. I tried searching and read some old posts but couldn't gather much information except that it was important to hire a personal home inspector. What I'm afraid of is the inspector finds too many flaws and the builder is not willing to correct them and I'll lose out on the earnest money. Any buying tips, comments, rude remarks etc is appreciated. *Almost forgot, do I need a real estate agent? Whether I have one or not, the sales person told me the sale price is the same. Should I hire one and have them give me back a cut of the percentage if they do nothing or will they actually help me save money via discount on home etc?
Doesn't sound good on many fronts. $185k is not expensive but is high enough that the neighborhood should definitely not 'blow'. And 3.7% is CRAZY for no amenities. Usually only really new neighborhoods have that high a tax rate and that's because they have a really good rec area with bike/walking paths etc. And I think DW is supposed to be better but not really sure. 3% earnest money sounds high. I wouldn't do it.
If you buy in a subdivision that "blows" now, just wait 5-10 years when you are ready to sell. It will super "blow" then and will make it even more difficult when you try to get rid of it.
I would check if there are any city sponsored first-time homebuyer programs. In Oakland, CA homes are 120k off for first timers. In San Francisco, homes can be 50% off market value, but there's a lottery for those. When my brother was first bought his house, he paid full market price even though there were first time homebuyer programs in his city. He never checked.
I wouldn't go in to talk to a builder without a GOOD realtor. They can get discounts you won't be able to get otherwise. David Weekly in the Dallas area is a great builder. I don't know about elsewhere. Well, they were a few years ago, anyway.
Well, maybe I was blowing it out of proportion. It's not that bad, but it's not that nice either. The main reason why I like this home is because it's only one minute away form my business which I've owned for over ten years. The convenience factor is very appealing. The other two home builders aren't out of the question if they have nicer homes/better deals. Any purchasing tips or anything to look out for in general?
Speaking as a homeowner, I wouldn't recommend that you buy a house for yourself unless: 1) you were totally in love with the house and neighborhood 2) you really needed the space and privacy 3) money isn't an issue for you Do you have a family or plan on starting one? If you do or will, you'll probably want to consider whether you want your kids growing up in that neighborhood and going to the local schools. Home ownership is a huge responsibility. It can be great but also a headache at times.
Buying a home is an investment. Although you may plan to live there a long time, chances are you will eventually move on to another home. In order to do that, you'll probably want to sell your current home. If you are already saying it's "OK," selling it to move on to the next home might be pretty hard. This is your home man. Where you will live, eat, sleep, have friends over, raise a family. You'll want to choose a place that is good for you and your family (if you are thinking of that). School districts, being able to walk around any time of the day if you want, etc. are all factors you might want to consider.
If you can afford to put down 20% downpayment, do so to avoid PMI. If the builder is not willing to correct the issues the inspector found, then try have your real estate agent bargain for the estimated cost of fixing those issues taken off from the final price. That's another reason why it's good to have an agent.
Check to see if you qualify for the USDA Rural Development loan. It is 100% financed and you do not have to pay PMI.
