Selena’s 2023 June Newsletter

Typically when you want to renovate and sell a home, you have a budget in mind for the construction with a targeted future value sale price so you know you are not spending too much on the renovations. Once again, its common sense. So what happens when you are buying a new home and the builder offers a few upgrades. I would assume as a buyer you would know if you have money to cover the upgrades but there is another side that buyers may not be aware of and perhaps even the buyer’s agent is unaware as many builders keep them out of the conversation once the purchase agreement is written up on the builders form. It is easy for a buyer to over spend and most lenders do not include upgrades in the mortgage, so the buyers end up covering the discrepancy in order to close the deal. Presale homes often take several months or even a year to build, and nobody know what the market will be by the time its ready and if the upgrades will have actually added to it’s value so you need to be careful when buying a new home.