Description

Kiplinger's financial experts offer you advice on getting the best deal on real estate.

Transcript

Kevin McComally: I’m Kevin McCormally of Kiplinger’s I’m here with Pat Esswein the housing editor of Keplinger’s Personal Finance Magazine to talk about buying a new home. Pat we know from the statistics that home owners around the country are suffering the severe downturn maybe for the recession. Is it a great time to buy a brand new home? Pat Esswiein: It can be but you really have to be committed to living in that house for at least five years so that you can whether further downturn in home prices. Kevin McCormally: Can we expect price cut on a brand new home? Pat Esswein: It really depends where your buying, if you’re buying in the central valley of California where there is been a severe down turn and builders are really stock with a lot of inventory, you make it a great deal. If you’re buying in rally dorm or the down turn is slight you might not get as great of the deal. Kevin McCormally: Where do you get the best deals? Pat Esswein: You will find the best advertise deals on what the builders is called quick move in homes. Those are houses that they’ve already built maybe they have a consolation for the sell of them. They are carrying those homes on there books and they’re really anxious to get rid of them. Kevin McCormally: Okay I’ve heard a lot in semis, what kind of semis that the home owners offering to bring people into the doors. Pat Esswein: Typically they offer upgrades to the home those might include better quality cabinetry or carpeting, perhaps additional landscaping sometimes they offer what I would call goodies things like a plasma TV or a free vacation or the like. Kevin McCormally: Is this go to everybody? Pat Esswein: No, typically you have to agree to work with the builder’s lender and take there financing in order to get the incentive. Kevin McCormally: Is that a good deal? Pat Esswein: It can be a very good one but the only way you will know that is if you shop the deal so look at other financing options. Kevin McCormally: Okay do the home buyers need an agent when I go to builder? Pat Esswein: Definitely, when you walk in to a builders sales office the very friendly people working in there are the builders sells agents. So you need to own your own buyers agent to represent your enterest. Kevin McCormally: Okay thank you Pat.