Buying New Construction in Hemet, CA: Tip #1 - Consider Your Upgrades

In today's "Buyers Market" there are many great bargains available in both the resale market as well as the new construction. Make sure you weigh all of your options. In Hemet, CA we do have many great opportunities to buy a home for sale either from the builder, the bank (as in foreclosure homes) and directly from the homeowner - either as a short sale or a straight retail transaction (although the later are becoming less and less available as it becomes more difficult to compete with the builders and the banks).

This series of articles is provided to help the first time homebuyer or even the move up homebuyer make the right decision when buying new construction in the Hemet - San Jacinto Valley in South West Riverside County area of the Inland Empire in Southern California.

1. Consider Your Upgrades. First, you need to know how you are going to pay for them. Many builders will want a substantial portion of the upgrades paid for in cash (just in case your mortgage does not fund). You may want to consider if the builder will allow you to do your own upgrades (via a licensed contractor) as opposed to using the builder. This option could be extremely helpful if you have a relative who lays tile floors, for example - why pay to have a basic floor installed only to have it tore out after you take possession of the home for sale.

You will also want to seriously consider which upgrades you are going to have built into your property value and what their ROI may be. For example, lets say you decide on Granite Countertops at a cost of $20K. If your basic price point is $250K, then Riverside County will access your taxes at $270K, increasing your property taxes and additional $200 a year (based on just a 1% tax rate).

While Granite countertops may hold their value and contribute tot eh ROI of the sale of your home when you eventually do sell, paying for custom painted red walls probably will not - yet every dollar you spend on the purchase price adds to your accessed value for property tax purposes.

Please read and consider these tips on what you need to consider if you are going to shop and buy a NEW construction home in the Hemet - San Jacinto Valley...or anywhere else in South West Riverside County - the Inland Empire - Southern California or anywhere else for that matter.

Until Next Time, Have a Blessed Day,

John Occhi, Hemet CA REALTOR®
Mission Grove Realty

Author of "What You Need to Know...About Foreclosure and How You Can Stop It!" - If you are a Hemet or San Jacinto Homeowner please call (951-443-6259) for your free copy.

This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

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I am proud to be a full time REALTOR® with Mission Grove Realty who is proud to be a contributing member of the ActiveRain community.