By Mike Bodeen · 10 January 2022
This past Friday, some client/friends and I drove up to Flagstaff for the day to check out the possibility of them buying a townhome/condo as a second home, not an investment.
We looked at a 1-bedroom condo that had just come on the market on Wednesday for $230,000. It was nicely updated, and the price point was good for them. Flag appealed to them because of its four-season community, and they are very much the outdoor enthusiasts.
Already there had been a full price offer with an escalation clause, and the agent said they were expecting two cash offers to come in within a few hours. The seller was going to be reviewing and deciding on an offer later that same day. Time was of the essence for us. I had drawn up an offer the previous evening, anticipating that we would need to act quickly.
As it turned out my friends decided against competing for that unit and instead opted for a nice new condo project downtown. Yes, it was more expensive, and it wasn’t going to be built move-in ready for at least a year, but I think it was a really good move for them, especially considering that the price is locked in and also because of their love for the downtown district. Even from Peoria, where they currently live, it is only a tad more than 2 hours to get there. And one of the biggest incentives for them? No Competition!
“…if you’re thinking about getting a getaway, The Bodeen Team is a member of the Northern Arizona Multiple Listing Service. Let us set you up on a high country MLS search to help you find that mountain retreat!”
Buying new has it’s advantages. As mentioned above, the price is set when you sign a contract. There’s no competition – no bidding wars, but you do need to be prepared to buy right away, or the particular unit you looked at today will most likely be gone the next time you check in. Now that may sound like salesmanship hype, but these days it’s true.
Of course, a great benefit is that “new” means new. New everything and it includes a builder warranty. You also get to pick out your finishes. Yes, the nicer the finishes, the more costly they are, but you get the home you will get to enjoy for years.
Downsides? Yes, there are some.
First off is location. In Phoenix Metro most affordable new homes are built further out from Phoenix/Scottsdale unless they happen to be infill projects. Today, location for commuting is not as important as it was previously due to mobile employment, but for those auto-commuters, distance is a big deal.
Another downside is that even though new prices are locked, mortgage rates are not. My friends weighed the possibility of rising rates they might run into in a year and their conclusion was that the wait is worth it.
For some, the time to build the home is a downside. What use to be a 6 month build just a few years ago has grown to 8,10, or 12 months or more now. This can be a plus or a negative. Positively, the wait means you can stay in your home longer and quite possibly time your existing home sale and moveout concurrently. For others the long closing is not a convenient option.
Also, for single family detached homes, a buyer must be be willing to “live” in the new neighborhood construction (some say war-like) zone of unfinished homes with workers there every weekday for quite awhile.
Like everything else, there’s pro’s and con’s to looking at new homes and weighing the options. Keep in mind too, that having The Bodeen Team represent you in your new home purchase costs you nothing and gives you another set of trained eyes and experience to represent you. Otherwise, you are only represented by the builder’s agent, and they have loyalty only to the builder, not you.
And, if you’re thinking about getting a getaway, The Bodeen Team is a member of the Northern Arizona Multiple Listing Service. Let us set you up on a high country MLS search to help you find that mountain retreat!