Have you thought about your New Year’s resolution for 2017? Do you have many of them? Is buying a new home one of the goals? Many families because of different situations, need to move and buy a new home. A new job, a better school for their children, a home that is closer to work are some of the reasons people start looking at new homes. Sometimes they can spend months looking at houses that for whatever reason, are not what they are looking for. If you are looking to buy a new home this coming year, you must read the following articles to get an idea where to start and what to look for when buying an older home or a new construction.
Buying a New Construction Home? Read This First
Your home is one of the biggest investments you’ll make. It’s also a purchase that’ll affect you and your family every single day.But, as an ABC News “Nightline” investigation revealed this week, buying a newly constructed home can be fraught with perils such as melting siding, loose bricks, mold as well as foundation problems.
These are just some of the flaws found in new housing developments by ABC News reporters around the country.
The recent U.S. building boom — with tens of thousands of new homes going up every year — has brought a flood of consumer complaints.
At the same time, there’s an industry trend toward mandatory, binding arbitration clauses in new home sales contracts.
Many consumers sign these contracts not really understanding that the arbitration clause takes away their right to go to court before a judge and jury.
The building industry says arbitration helps unclog the court system and deal with complaints more efficiently. But consumer advocates say it’s often stacked against the homebuyer, as private arbitrators want to keep being used by the construction industry to hear cases to which can bias the arbitrator’s decisions in the industry’s favor.
Slowly, water-soaked ground is consuming two houses on London Road in an east Asheville neighborhood, apparently caused by a collapsed drainage pipe.
The emerging sinkhole has created a legal quandary for the homeowners, who find themselves stuck with unlivable properties and difficult prospects for a fix.
Through his company, SLG Properties LLC, Terry Simmons owns one of the houses, a duplex at 225 London Road, near its intersection with Iris Street just before the Interstate 40 overpass. The home is clearly sinking and has a cracked foundation, problems that began emerging a year ago but worsened in the early part of 2016.
“So I’ve got a building I’m paying my city taxes on, still paying insurance on, still paying a mortgage on — I haven’t missed a payment at all, ever — and I can’t put a tenant in it. I can’t sell it, I can’t fix it,” Simmons said. “That’s another $40,000 to lift it up and move it forward, and that’s not even taking into consideration reattaching the utilities, or even if the city would let me keep it there.”
Looking to buy a home in 2017? Here are your first steps
5 ways to be prepared throughout the process.
Are you looking to finally buy a home, but not sure where to start? These five tips give borrowers an idea of where to begin the sometimes daunting process.
In an email to HousingWire, Ray Rodriguez, regional sales manager of TD Bank, provided this advice to consumers gearing up to buy a home in 2017, whether they are first-time homebuyers or veterans of the process.
1. Know how much of a loan you qualify for: Potential buyers should consider the loan-to-value ratio in determining what they can afford. This is calculated by dividing the loan amount over the appraised value or purchase price of the home, whichever is lower. A higher LTV, especially above 80%, may negatively impact pricing and oftentimes implies the added expense of private mortgage insurance.
