All Costs Equal: Would You Buy Used or New?

By Andrew Hill @ New Homes Move

So your friends and family have told you buying new is the way to go, but you can’t seem to get your head around the hefty price tag? Sure enough, new homes can entail a higher upfront cost, but used homes have their costs as well. The biggest problem with buying a used home is that it always entails settling for less than your dream home. The key is to look at the big picture and understand that buying a home is an investment. It’s not a one-time purchase and it should not be treated as such.

When thinking about buying new versus used, you should consider the following factors. Imagine two homes in the same neighborhood with the same square footage and the only difference between the two is that one home is 25 years older and costs 25% less. Sounds like a great deal at first, but if you look closer you’ll see a multitude of drawbacks. The older home will have worn out appliances and hardware, which will consume money and labor to repair. The older home may also have outdated technology or other pieces that require replacing. Older homes also tend to be much less energy efficient. Thanks to advances in reducing energy consumption, newer, more efficient homes can help lower your monthly utility bills, a factor often overlooked when considering homes.

New construction also comes with a new home warranty, while the warranty for a used home will probably be out of date by the time you own it. And possibly the most important consideration of all is the amount of remodeling you may have to do. After all, buying a new home that is tailored to your tastes can be much more cost effective than buying a used home that will require extensive modifications. All those costs add up and you can end up with a used house that will cost you just as much as buying new.

So, all costs equal, which would you choose: a home with the square footage, location, floor plan, and amenities you desire or a used home with a layout that doesn’t suit your needs that will require time and labor to fix the house to your liking.

The answer seems obvious to me. For more information about buying new versus used, contact Kathleen Daniels, today!

Home & Patio Show – San Mateo Event Center 

February 11-13th, 2012

Friday, February 10, 2012 – from 12noon to 6pm

Saturday, February 11, 2012 – from 10am to 6pm

Sunday, February 12, 2012 – 10am – 5pm

Patio Furniture Giveaway – over $5,000 over the weekend

       “How To” Seminars:

• 12:00pm – 4:00pm on Friday, February 10, 2012
  
• 11:30am – 4:30pm  on Saturday, February 11, 2012
  
• 11:30am – 3:30pm on Sunday, February 12, 2012
  
• Friday – Saturday from 12 – 3 pm – Free antique appraisals

Hourly Price Buster Sale – rolling back prices – every hour will announce various exhibitors offering roll back price savings.

The San Mateo Event Center is located at 1346 Saratoga Drive, San Mateo, CA

There is Free street parking at the event.  There is also an Event Center parking lot which charges a $10 fee for parking.

Let us know if you win patio furniture for your San Jose home.  Kathleen Daniels, San Jose Real Estate Agent will feature you and your new patio furniture on  San Jose Real Estate and San Jose Homes site.  If you don’t have a San Jose Home, then let me help you find the perfect home for you.  Don’t delay – call 1-800-972-1822 today and get started on your San Jose home search.  

New Homes Construction in Blossom Valley San Jose

New construction of Blossom Valley Homes at the corner of Blossom Hill Road and Southcrest Way between Chesbro and Cahalan in San Jose, Ca 95123.

The single family homes will be approximately 1,660 to 2,159 square feet; up to 4 bedrooms; and anticipated pricing from the high $600,000’s.

The name of the Development is Westbury, by Brookfield Homes.

Video taken on Sunday, January 29, 2012 – Check back for Video Updates

This location is convenient to shopping, dining and freeway access.  Westfield Mall is just minutes away.  Across Blossom Hill Road is an OutBack Steak House, Marie Callender’s, Juicy Burger, City Espresso, several fast food establishments and retail shops.  The Cahalan Post Office is a block away. It’s also close to Highway 85. The farthermost end of this development at Chesbro abuts Highway 85.

An important tip for San Jose home buyers looking to purchase new construction.  Know that the sales person works for the builder/developer.  This means that you definitely want to hire an experienced San Jose Real Estate Agent to represent YOU.  Make sure you have your San Jose real estate agent with you when you first visit and register at the sales office.  If your agent is not with you when you first register then your agent will not be able to represent you.

Second important tip:  Get a property inspection.  Just because it is new construction does not mean there are no construction defects.  This allows your agent to negotiate the repairs before escrow closes. You would be surprised what home inspectors find with newly constructed homes.

If you are looking to buy or sell your San Jose home or any location in Silicon Valley allow me the opportunity to be of service. 

My consultations are free. Your satisfaction is my guarantee. 

Kathleen Daniels, Broker – Serving San Jose and  Silicon Valley – 1-800-972-1822

Blossom Valley Homes – 2011 Year End Market Report  

Week ending December 31, 2011 compared to January 1, 2011

There were 78 Blossom Valley homes, including short sales and bank owned homes for sale in the week ending December 31, 2011.

There were 145 Blossom Valley homes, including short sales and bank owned homes for sale in the week ending January 1, 2011.

Of the 78 Blossom Valley homes there were 31 San Jose short sales, 8 bank owned homes and 39 traditional Blossom Valley homes for sale.

Half of the Blossom Valley homes for sale are comprised of short sales and bank owned homes. Many people confused distress sales with distressed properties. Most Blossom Valley short sales are not distressed properties. Many are nicely maintained and move-in ready homes. The sellers simply are facing financial difficulties and are unable to make their mortgage payments. For most Blossom Valley homeowners, a short sale is preferred over foreclosure.

3 month moving average

Blossom Valley Real Estate – 2011 Year End Market Report

• Median Price: $455,000 = 2.2% decrease from November 2011 ($465,000); Year-over-Year = 4.2% decrease at $475,000
  
• Average Price: $472,841 = 1.6% increase from November 2011 ($465,607); Year-over-Year = 3.0% decrease at $487,407
• No. of Sales: 55 = 17.0% increase from November 2011 (47 sales); Year-over-Year = 3.8% increase at 53 sales
• Sale vs. List Price: 99.3% = 1.5% increase from November 2011 (97.8%); Year-over-Year = 0.5% increase at 98.8%
  
• Days on Market: 50 = 32.5% decrease from November 2011 (74 days); Year-over-Year = 5.5% increase at 47 days

Inventory continues to be low in the Blossom Valley Real Estate Market. Prices are holding relatively steady.  Low inventory means we are experiencing multiple offers on Blossom Valley homes.  Buyers continue to look for “good deals” which may be found in a short sale.

If you are having difficult making your mortgage payment and don’t know what to do then call an experienced San Jose Short Sale agent for a free consultation.

Don’t wait until you are out of time. Call today!  800-972-1822 

Almaden Homes – 2011 Year End Market Report
Week ending December 31, 2011 compared to January 1, 2011

• 49 Almaden homes, including short sales and bank owned homes for sale in the week ending December 31, 2011.
• 62 Almaden homes, including short sales and bank owned homes for sale in the week ending January 1, 2011.
• Of the 49 Almaden homes there were 8 San Jose short sales, 1 bank owned home and 40 traditional Almaden homes for sale. 

The number of short sales in the Almaden real estate market are relatively few in comparison to many other San Jose neighborhood communities. While short sales may be fewer in Almaden, the numbers of short sales are increasing. Almaden homeowners can avoid foreclosure by hiring an experienced San Jose Short Sale Agent.

Don’t wait until it’s too late.

Call 800-972-1822 today for a free, no obligation consultation.

Almaden Valley Real Estate – 2011 Year End Market Report

• Median Price: $856,500 = 8.4% decrease from November 2011 ($935,000); Year-over-Year = 8.9% decrease at $940,000
  
• Average Price: $896,636 = 11.0% decrease from November 2011 ($1,007,750); Year-over-Year = 9.2% decrease at $987,539
  
• No. of Sales: 22 = 15.8% increase from November 2011 (19 sales); Year-over-Year = 4.3% decrease at 23 sales
  
• Pending Properties: 28 = 9.7% decrease from November 2011 (31 properties); Year-over-Year = 6.7% decrease at 30 pending sales
  
• Sale vs. List Price: 98.7% = 0.1% increase from November 2011 (98.8%); Year-over-Year = 1.7% increase at 97.1%
  
• Days on Market: 69 = 46.6% increase from November 2011 (49 days); Year-over-Year = 45.1% increase at 48 days
  

What does this mean for the Almaden real estate market?

Prices month over month and year over year continue to be down. Inventory continues to decline It took longer for homes to sell in December.  This may be attributed to the holidays. Although prices are down, the list price of homes in Almaden that went under contract in December held steady at nearly 99% of list price.

While prices dropped nearly 9% from last year, it’s still a great time to sell homes in Almaden.  Let supply & demand work for you. We still see multiple offers on competitively priced homes. This is especially true in Almaden Valley, a highly desirable community with top rated schools.

Silicon Valley Homes

2011 Year End Market Report

Week ending December 31, 2011 compared to January 1, 2011

There were 1,372 Silicon Valley homes, including short sales and bank owned homes in the week ending December 31, 2011.

There were 2,065 Silicon Valley homes, including short sales and bank owned homes in week ending January 1, 2011.

Of the 1,372 Silicon Valley homes for sale, there were 353 short sales, 192 bank owned homes, and 886 traditional Silicon Valley homes for sale.

Silicon Valley Real Estate – 2011 Year End Market Report

• Median Price: $535,000 = 4.4% decrease from November 2011 ($559,500). Year-over-Year = 4.6% decrease from $560,000. December was the 14^th consecutive month the median price for homes was lower than the previous year.
• Average Price: 722,631 = 4.1% decrease from November 2011 ($753,848). Year-over-Year = 4.3% increase from $693,064.
• No. of Sales: 868 = 8.0% increase from November 2011 (804 sales). Year-over-Year = 3.6% decrease from 900 sales.
• Sale vs. List Price: 98.7% = 0.3% decrease from November 2011 (99.0%). Year-over-Year = 0.2% increase at 98.5%.
• Days on Market: 63 = 5.9% increase from November 2011 (59 days). Year-over-Year = 3.5% increase at 61 days.

2011 Sales Increased, Prices Dropped

• Single-family, re-sales home sales were up 0.5%
• After a nice gain in 2010, prices were down. The median price for homes dropped 5.3% and the average price dropped 1%.
• Condo sales were up 12.2% over 2010.
• The median price for condos dropped 13%.
• Inventory continues to be low for both homes and condos. This should help drive prices up.

If you are Facing Foreclosure – understand your options.

Don’t wait until you’re out of time. Avoid Foreclosure.

Call 800-972-1822 for a free consultation.

Silicon Valley Homes – Market Report

Week ending December 3, 2011 compared to December 4, 2010

There were 1,736 Silicon Valley homes, including short sales and bank owned homes in the week ending December 3, 2011.

There were 2,454 Silicon Valley homes, including short sales and bank owned homes in week ending December 4, 2010.

Of the 1,736 Silicon Valley homes for sale, there were 409 short sales, 150 bank owned homes, and 1,177 traditional Silicon Valley homes for sale.

Silicon Valley Real Estate – Market Report November 2011

• Median Price: $559,500 = 1.7% increase from October 2011 ($550,000)
• Average Price: 753,848 = 5.3% increase from October 2011 ($715,689)
• No. of Sales: 804 = 0.6% increase from October 2011 (799 sales)
• Sale vs. List Price: 99.0% = 0.3% decrease from October 2011 (99.3%)
• Days on Market: 59 = 0.5% increase from October 2011 (59 days)

Market Barometer

The Market Barometer is a rough estimate of the state of the market. Real estate markets are very local. Regardless of whether the market favors buyers or sellers, there will always be premium homes priced right that attract multiple offers, unless of course the market has totally crashed! Conversely, there are always over-priced listings that will never sell.

• The Market Barometer compares homes sold to homes newly listed.
• The following thresholds are used: +0.10 to indicate a Sellers market and -0.10 to indicate a Buyers market. A balanced market is anything in between and is indicated by the gray columns.

The sale of Silicon Valley homes fell 4.8% in November from October. Year-over-year, home sales are down 5.9%. Year-to-date, home sales are flat.

November Condo sales were down 2.5% from October, but were up 26.9% year-over-year. Year-to-date, condo sales are up 12.3%.

The median price for homes was down 5.2% year-over-year. This is the thirteenth month in a row the median price for homes were lower than the year before.

The median price for condos was down 12.5% compared to last November.

Inventory of both homes and condos continues to be low, which should be good for prices. Home inventory was down 28.9% compared to last November. Condo inventory was down 46.1% year-over-year.

If you are Facing Foreclosure – understand your options.

Don’t wait until you’re out of time. Avoid Foreclosure.

Call 800-972-1822 for a free consultation.