Thursday, September 9, 2010

Some Buyers Choosing New Homes over Short Sales

A recent Florida buyer shared this story with

"'I purchased a new home because I will never ever go through a short sale nightmare again in my lifetime,' said buyer Lynn Buonviri. Her dream short-sale fell through when the seller cancelled without telling anybody, refused to move out, and would not come to the door. The fact that she had just arrived after pulling a trailer 1,000 miles for the scheduled final inspection, did not help. 'My broker negotiated with the bank and owner for 5.5 months. The stress on both of us was incredible, but the idea of going through this again was unbearable.'"

Buonviri chose instead to purchase a new home with a 10-year warranty.  Another buyer interviewed for the story was in escrow on a short sale that cancelled unexpectedly because the seller backed out.  But he closed for cash on a new, upgraded home for about $2/SF less than the short sale.  One obvious fact about new homes - the builder is very unlikely to cancel a sale, especially with the glut of inventory nationwide.

Does there seem to be a trend, which would be welcomed by builders, that new homes are emerging as an alternative to the short sale?  Sean Strickler, Vice President of Sales for the Pulte Group, which builds here in New Jersey, thinks so.  He said that the Pulte-branded communities maintain an inventory home program specific to each community, "While we don't want to overbuild in a particular community, our goal is to always have a quick move -in or two for those buyers who don't want to wait for their home to be constructed."

There are many new home "products" to choose from in Mercer County and surrounding areas.  While you can visit sales centers and spend time looking for them and driving around, you could ask an expert in new homes - like myself - to tell you which developments would fit your needs and price.  I know the builders and the homes - just call or email for information on buying a new home in New Jersey.

Joe Giancarli, SA
Real Estate Advisor

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