The full guide To Buying New Development in USA
Guide to Buying New Development
New development USA is a popular niche in the real estate market. More and more people decide that they do not want to buy a home after the previous owners. While this may seem cheaper at first glance, it can incur additional costs. For example, you might want to redesign your home. Also, often after the purchase, new owners reveal hidden defects. There are no such problems in a new home. The first owner immediately orders the finish that he likes. The developer is responsible for correcting deficiencies. You can find an extensive catalog of properties of all types on the iNewHomes – new developments page.
USA new development
New constructions in USA are usually more expensive than secondary housing. But the price difference is not nearly as great as the benefits you will get. New houses are being built according to improved designs. You’ll get:
- Luxurious amenities in a house or apartment;
- Cozy landscaped area;
- Ability to choose the best site or location of the apartments.
However, in addition to the higher upfront costs, buyers of new properties must be prepared for extended relocation times. This is due to the fact that new homes are often sold at the design or construction stage.
Where find a new development in USA?
The easiest way to choose a dream home or apartment is on specialized sites, for example, iNewHomes. You will also find options for new construction condo in USA. Please note that, for example, in New York, a new building can be considered a reconstruction of an old building if there is an increase in the area of 110%. To take into account all the nuances, you need to study in detail not only the characteristics of the house, but also the state legislation.
New development closing costs
The average US cost of closing a real estate transaction in the secondary market is about 3% of the value of a home. In the case of new buildings, this amount increases to 5%. This 2% difference includes the following costs:
- Taxes on the transfer of ownership;
- Payment for agency services, which acts on behalf of the developer;
- Contributions to working capital;
- Other bureaucratic formalities.
The tax levied on the transfer of property to a government agency is 1.825% of the value of the property. This is the largest part of the cost of closing a new property deal.
How to save on new development in USA?
Some brokerage agencies help their clients save on fees when closing a real estate transaction. For example, customers can take advantage of this opportunity in New York. Provided that clients are ready to wait, the broker will select an advantageous personal offer. As a result, the client receives part of the commission due to the broker. Thus, the buyer can save up to 2% on the value of the new property. If you are willing to wait, then closing a deal to buy a new building will cost you no more than buying in the secondary housing market.
Inew-homes.com specialists not only offer an extensive real estate catalog, but also a blog with useful information. The real estate market in the United States is developing cyclically. There are seasonal peaks and troughs. Also, the usual cycle of rising prices and a slight decrease in prices lasts about 2-3 years, in some states the trends change every year. New York was the exception to the rule. For more than 10 years there has been a stable rise in prices.
If the situation does not require you to make quick decisions, have the patience to wait. This approach will allow you to choose the best option, get a discount and save on closing costs. During a downturn in the real estate market, buyers will be able to get lower mortgage rates. Also, you can upgrade your home at a lower cost, or trade it for a larger or better area. At a time when the market is developing and prices are rising, buyers can look forward to many more options. Also, the proposals will be more relevant in terms of comfort and quality of real estate equipment.