REI Wealth Issue #60 featuring Steve Davis, Total Wealth Academy | Page 44

As new homes become more popular again , some investors are still shy about buying them . A major reason , according to REALTOR . com , is that people believe new construction is expensive and time­consuming . However , that ’ s not necessarily true .

Here are five other myths about new homes , and the truth about each one .
1 . Financing a new home is difficult .
Actually , it may be easier to finance a new­construction home than an existing property . Builders usually can offer special terms through their relationships with lenders . Sometimes , major builders even act as lenders .
2 . You won ’ t be able to inspect a new home before buying it .
This is another misconception . In reality , most buyers can even inspect the home while it is being built . Local government officials also inspect a property before issuing paperwork like certificates of occupancy , so rest assured that your investment will be safe .
3 . New­construction homes all look alike .
While there are traditional models that builders use , there ’ s still plenty of room for each buyer to customize their new home . Remember that existing properties actually are sold “ as is .” Always check builder reviews before signing any contracts .
4 . Pre­owned homes were built better .
Building standards , codes , and the quality of materials get better every year , so this is another myth . Things like lead paint just aren ’ t acceptable anymore .
5 . You don ’ t need a real estate agent to buy a new home .
If you ’ re an experienced investor , this might turn out to be true . However , buyers of new homes can still benefit from having a real estate agent involved in the deal . An experienced REALTOR ® can save you money on the purchase price and negotiate the best deals on any customizations .
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