Common myths that people actually believe about pre-construction homes:
1. House prices always increase.
2. Always buy in Phase 1 as there are always price increases in every subsequent phase.
3. Builders cannot lower their home prices cause it reduces the value of every other house that they have sold.
4. Everyone wants a new house.
Common actual risks that people who buy pre-construction face:
1. You are buying a house that doesn't exist. You have no idea of the build quality of the house that you are buying.
2. Interest rates can go up before you close meaning that house can cost you more.
3. Property taxes can go up before you close meaning that house can cost you more.
4. Gov't changes to mortgage rules mean you may need to bring more money to the table to buy that house when it closes.
5. Personal life changes like a job loss or a change in your family means you may no longer even want the house when it is built.
6. A market correction means that your house can be worth less when it is built. When determining value, your new home is compared to resale homes and not other new homes.
7. Pre-construction homes always cost you more than the list price. Upgrades, appliances, landscaping, fencing, window coverings....all add up.
8. Builders do go bankrupt and projects can be cancelled leaving you without a future house and you deposit money tied up.
1. House prices always increase.
2. Always buy in Phase 1 as there are always price increases in every subsequent phase.
3. Builders cannot lower their home prices cause it reduces the value of every other house that they have sold.
4. Everyone wants a new house.
Common actual risks that people who buy pre-construction face:
1. You are buying a house that doesn't exist. You have no idea of the build quality of the house that you are buying.
2. Interest rates can go up before you close meaning that house can cost you more.
3. Property taxes can go up before you close meaning that house can cost you more.
4. Gov't changes to mortgage rules mean you may need to bring more money to the table to buy that house when it closes.
5. Personal life changes like a job loss or a change in your family means you may no longer even want the house when it is built.
6. A market correction means that your house can be worth less when it is built. When determining value, your new home is compared to resale homes and not other new homes.
7. Pre-construction homes always cost you more than the list price. Upgrades, appliances, landscaping, fencing, window coverings....all add up.
8. Builders do go bankrupt and projects can be cancelled leaving you without a future house and you deposit money tied up.