Home Values Are Ever-Changing, Especially New Construction

More value for less money“More value for less money.”
“More for less.”It’s what we all want whenever we spend money on anything.    We want to feel like we spent our hard earned money wisely…especially when we’re committing to a large purchase such as a home.
There’s an insightful article on Lancaster Online which really shows how competitive the buyers market has become.If you’re a home owner with your home on the market or are even thinking of selling your home, it’s important to remember that your home is competing with new construction.  Many people don’t stop to think about that and unfortunately many real estate professionals don’t spend enough time explaining this to their clients.

It has never been more true than in today’s market, as the “bigger better faster more” mentality of builders in the past has given way to a more stripped-down mentality of creating new floor plans for homes that will price at $200,000 or less.   Here is an excerpt of the Lancaster Online article:

“Ryan McMinn thought the first home he bought would be a town house.  Until he realized he could purchase a new, single-family residence for not much more than he’d pay for a town house.  Before beginning his search, “I honestly didn’t think” that would be possible, said McMinn, who rents an apartment in Mount Joy’s Florin Hill development.”
With the residential construction boom of the previous decade only a memory, builders have been forced to adjust to a very different market. And while the so-called McMansion era may not quite be over, today’s buyers tend to be less interested in oversized foyers and other bells and whistles.new construction lancaster pennsylvania
Some contractors have adapted by offering single-family floor plans priced at less than $200,000 — a prospect that was unheard of in Lancaster County a few short years ago.

Larry Wisdom, president of Keystone Custom Homes, said nearly 25 percent of th e 200-plus Keystone houses that have sold or gone under agreement this year are singles priced at less than $200,000.”

There are a few points to remember as a buyer or a seller:
1)  Builders are coming down on their floorplan prices because they have to in order to compete with the existing home prices which have plummeted over the past decade.
2)  Let’s face it…most new construction lacks the creativity, uniqueness and forethought of homes built 15 years ago or more.  There, I said it.  The price of a new home was lower and homes were more unique and less “cookie cutter.”
3)  To sell your home on the creativity and uniqueness of its design still requires you to do proper maintenance and put fresh coats of paint on the walls, etc.  No matter how nice and unique your home may be, it still has to feel like a great value for the money to the buyer.  The more fresh and new your home looks, the better you will compete with new construction.

~ by bobenglishsellshomes on September 13, 2011.

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