Early indications are that 2024 will be a more fulfilling, bright and economically promising year.
Goldman Sachs Research, for instance, expects the global economy to outperform expectations in 2024, just as it did in 2023. That’s per the financial services firm’s financial outlook released last month.
But what about locally, statewide in California and even on Main Streets? Lucky for us, the news is even better, according to the firm’s California outlook.
And if California’s growth prospects for this coming year look robust, then now is the best time to make a decision about a new home.
Sure, mortgage interest rates may still be higher than desired and higher than in the past few years. But there’s no arguing that even with a non-optimal mortgage interest rate, the cost to buy and own a brand-new home is far less than the cost of renting in California.
So how about resolving to do all you can to learn about the benefits of buying a new home?
Let’s start with the who, the what, the when, the where, the why and the how.
The “who” may seem obvious. But this new home likely won’t be just for the buyers. Without losing track of today, imagine who might live or visit this home in the coming decade.
What are the age groups of the people who will live in the home — or spend long periods of time there — over at least the next decade? Most households don’t look the same over time.
Whether newborn babies, growing teens, grandparents, adult children and even au pairs or home health aides, the house may need to have a flexible floor plan.
Given those dynamics, and who will spend the most time at the home, what kind of features will be necessary? Can you find those in a resale home or are you better off choosing them with a builder in a new-home community?
Visit a few communities simply to meet with builder representatives. These professionals ask the questions to help buyers determine their households over time, even if those needs don’t result in the purchase of a new construction home. They want the best for their buyers. Happy homeowners make happy communities.
As for the when part, it’s important to understand that securing a preapproval letter can take up to a month. That’s why builders and real estate professionals advise collecting financial documents at the earliest stages of house hunting.
Mortgage loan preapproval carries much more weight than prequalification. And most builders or sellers won’t accept an offer without a buyer preapproval letter from a financial institution.
Think of a preapproval letter as a solid endorsement of your ability to meet the requirements of the loan. The prequalification figure, meanwhile, is an easily calculated estimate of what amount you might be able to borrow from a lender and doesn’t express the confidence of preapproval.
Also important is the where, although location arguably might have driven the decision to go house hunting in the first place. Consider not only city and county, but what types of neighborhood amenities make the most sense for your household.
New-home communities include everything from all-inclusive multifamily condo or townhouse complexes near transit, dining and shopping, to suburban communities featuring new parks, walking paths, waterways and schools just steps from home.
When it comes to answering the question of why to buy a new construction home, consider a list of comparisons and weigh your priorities. These might include new homes’ lower initial cost-to-own, contemporary floor plans, modern conveniences, turnkey living and other efficiencies.
With a resale home, meanwhile, you may be drawn to the idea of an established neighborhood, possibly in the community where you already live. Deciding on why involves prioritizing. Outline the pros and cons of both.
Finally, the buyer who has thoughtfully and thoroughly figured out their answers to who, what, when, where and why has already begun the “how” portion of the process.
Backed by everything you’ve learned about yourself and your needs, you’re ready to visit some builders and new-home communities in person. Bring your answers to the previous questions with you.
And share openly. The more you do, the better the builders can help.
