Should you buy a resale or new construction home in the 2022 Sarasota Real Estate Market?
As we move further into 2022 and the housing shortage is not slowing down!
Is it better to buy an existing home or should I just buy new construction? You all know I like new homes. And I have a few favorite builders. And I also love some of our most beautiful and older Sarasota neighborhoods. Which is better in 2022? How do you know if you should buy a resale or new construction home in the 2022 Sarasota Real Estate Market?
A year ago when we really started seeing the rise of bidding wars, and homes go for far more than list price, I suggested to many of my clients that we should venture down the path of looking at new construction. However, at that point, builders were not managing a long waiting list. Many of us were hopeful that life would somehow find normalcy after the craziness of 2020. Unfortunately, that is NOT what happened. Lumber costs skyrocketed! Then we started seeing the delay in all goods and products. If it wasn’t rising cost of supplies – it was delayed in getting windows, insulation, appliances, and more. Suddenly, even getting a permit to build was backed up for 3-4 months. What was once a normal process that would take 6-8 months can now take much longer than a year.
And if waiting for a home to be built was not the worse thing in the world what has ensued might be. The waiting list started in 2021 and some of this waiting list grew so quickly and so long no one knows what to expect. Do keep in mind though that anyone can sign up to be on most of this waiting list so many people did. I know individuals that are on the waiting list for 4-5 different subdivisions in Sarasota or Lakewood Ranch.
Then the builders decided this isn’t working and every time they had a lot available the time it took to call down the waiting list, find the person that wanted that lot, and the home that fits on that lot and the particular elevation and cost, well, you can imagine. It was a lot.
So then all builders started their own systems. Some builders started asking for a fully refundable deposit to be on the waiting list. Which I actually agree with. It will really limit the number of people on the list and determine who wants to be in this area.
Other builders decided however that they will just alert everyone that has visited or registered when lots are being released and let the public bid on these lots, silent auction style. Never really knowing what will come in. This may work great however my only concern is. Aside from the winning bidder, no one ever knows what that amount is. So should you bit 5,000 over, 10,000 or 100,000? This is truly a blind bit. Which does seem to work for a few builders.
Then we have builders that take your name and put you on a list and you may never hear from them again.
We have builders that still call directly from the list and move people up.
We are seeing a few builders build homes almost to completion and then releasing the homes for sale. They are able to price the home and determine when the closing date will be. However, what it does take away are your choices as the builders are putting the most common upgrades and choices in these homes. The good news is no surprises and fewer worries on timing but very little or any at all customizations.
Another concern I have with new construction today. When building a home you are not able to lock in an interest rate for more than 60 days out.
So all this being said is re-sale a better way to go in 2022.
As crazy as this market I am leaning toward re-sell homes in 2022 and here is why.
New construction may easily take 12-24 months at this time. And for some that may be just fine. But for many, it is time to find a home and start living again.
We have lived in limbo for 2 years now, we have worried, wondered, and contemplated our futures. We have lost loved ones, working from home, and eventually, we have to create a new normal, and nothing makes that easier than creating a life in your own home.
Homes are not only our shelter but they are a security, our safety, one of our largest investments. We all want to have a place to call homes and a nice roof over our heads. It is our basic wants and needs. I know, how do you do that when all you hear about are bidding wars. Well, you need to be prepared and flexible, and willing to do make a few sacrifices and not give up and work with an experienced agent
As agents, we are now very aware that almost all of our clients will make offers on 2,3, or more homes before they find one. We know we are going to lose some and win some. We will see everything that fits our client’s needs and along with our buyers wonder if it will ever happen but you know what. It does happen. I do not win all the offers I make, no one does. But I know that not only do my team and I prepare great offers to help you win we communicate with the seller’s agent, we research what we can do to write a strong offer, we research the market to educate you on what will make a good offer but without going crazy.
And the best part, you know exactly what you are getting and also what price and when. The other thing with buying re-sell, occasionally when you make an offer and if you are not the winning bid. If something goes wrong with the sale, which happens more than you would believe you just may get a call saying that if you are still interested the home is yours.
When someone wants a home, we will find a home and a way to obtain it.
I have worked with lenders that have been able to work miracles on behalf of their clients.
I know this market is frustrating. I live it every day.
If you want to buy a home and move into it before 2023 we can make that happen.
Again, it is all about being ready, being a little flexible, and working with an expert that guides you through this process.
If I can answer any of your questions please let me know and as always, until next time. Take care.