Part 2: A Lot to Think About... ๐
Move-Up Buyers Are Getting Creative in #pacificacalifornia
PART 2
๐ (Missed Part 1? Here's the link )
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I promised last week I'd go into a savvy investment/move up strategy that takes advantage of today's suppressed pricing using tomorrow's lowered rates. (It's my favorite ๐ค out of the 3 move-up solutions - without doing a Sell/Buy right now!)
Keep reading for why it can make sense for the investment-minded homeowner...
Here's Why It's My Favorite
It allows you to lock a purchase price at today's pricing (it's suppressed!) and secure financing in a more rate-friendly environment when the build is complete (late 2024/early 2025 based on some current project timelines like Project Clarendon).
This is exactly what makes new development uber attractive right now.
That's not to say it's without some risk, and it's certainly geared towards more investment-minded homeowners, but it's a solution that helps solve the Sell/Buy problem in this current market (or even just a straight buy too...).
๐ก Here are some things to consider...
The Pros:
The developer does the heavy lifting. You'll rely on their experience and expertise to secure the lot, vendors, permits, layout & design, etc. So much easier, and less risky, than buying a lot and taking on all the expense, hassle, and decisions that go along in that giant can of worms.
These purchases tend to be contingent heavy. The longer timeline allows for a comfy market prep & home sale timeline.
At the end of the rainbow you'll have a gorgeous NEW house that hopefully has appreciated over the build, and you move in with equity on Day 1.
The Cons:
It's speculative. It's assuming interest rates will be lower than they are today when it's time to secure financing on the home.
You likely won't be able to modify the layout or design, but you'll likely be able to give some input on colors, tile, and flooring. (I think this is a plus!)
Will require some cash up front & throughout the build, depending on how the deal is structured.
It's Nuanced
Of course, there are a lot of moving pieces (many but manageable) that need to be considered and I can't possibly go into all details here. So if all this sounds foreign, but albeit interesting, reach out to discuss.
๐ง Brain Available for Picking
Happy to offer my brain for picking on this one if you just want to play out some scenarios to see if it's even something worth considering.
And then there were 2....
There were 3 Project Clarendon Homes up for grabs, but as of today, one is spoken for!
Two left...you up for it?...
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๐ For a deeper dive into the details, or if you have any other specific real estate related questions call me or text me anytime.
CONTACT ME
(650) 898-8869 | call or text
michael@pacificarealtor.com
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Disclaimer
Michael Jimenez, Pacifica Realtor, DRE #01961866 provides access to information on this blog/website page as a public service for educational purposes only. Although reasonable efforts have been made to ensure that all information made available is current, complete and accurate, Michael Jimenez does not warrant or represent that this information is current, complete and accurate. All information is subject to change on a regular basis, without notice. Michael Jimenez assumes no responsibility for any errors in the information provided, nor assumes any liability for any damages incurred as a consequence, directly or indirectly, of the use and application of any of the contents of the blog/website page. The inclusion of, or linking to, other website URLs does not imply our endorsement of, nor responsibility for, those web sites, but has been done as a convenience to our blog/website visitors. By using this site you understand that there is no attorney-client relationship between you and the site publisher.