If you have been shopping for a home in and around Yamhill County, I'm sure your alcohol consumption has increased. Our historic inventory lows have made it nearly impossible for home-seekers to find a suitable place. Unfortunately, many voices in the residential construction and real estate industries believe that things will continue to become more difficult.
In times like this, I believe it is extremely important that you develop a relationship with a real estate broker. If you're shopping in multiple markets, establish good communication with someone in each area.
However, make sure you are creating a good connection. When the market is tough, find someone who understands local inventory levels, and especially, new construction.
When resale homes become extremely competitive, one can argue (and I will argue) that new construction is the best option. Here is why:
- Often new construction homes are not on the market. It's similar to an iceberg; you see the tip above water, but the majority of the iceberg is not seen, hiding below the surface. A builder may have a few homes listed in the MLS, but many are soon to be built, or in the initial stages, therefore less competition.
- Pricing is comparable to resale homes (after a bidding war). You'll see a house listed for $299,900, and then sell for $329,900. This is a pricing strategy used by many agents. With new construction, there are fewer buyers and, therefore, fewer bidding wars.
- New construction homes offer security. In Oregon, builders are required to offer at least a one-year whole-home warranty. This means, that if something goes wrong, you deal with the Builder. After purchasing a home, eliminating surprise costs such as the price tag to replace an old furnace is crucial. This can be done by purchasing a newly constructed home.
Thus, before you write off new construction as too expensive, remember, in this market, they actually are likely the best house for your dollar.
