Trade Wars and New Construction

Posted by Round Table Realty on Monday, August 5th, 2019 at 10:32am.

Trade Wars

A trade war between the United States and China means a brand new tariff. While a tariff could mean goods and services increase in price, it also means that insurance rates could continue to go down. With rates being the lowest they've been in 18 months and looking to maintain a downward trend, there has never been a better time to refinance or buy a home. The rates could go as low as 3%! And for those of you who know about as much about the economy as Erin does, it means it's an absolutely incredible time to get a loan for a home. Your monthly payments could potentially be lower which means you might be able to afford more house. That means if you're looking to build the home of your dreams, new construction might be perfect for you right now.

New Construction

First, it's important to note that as a brokerage, we've seen the new construction industry's level of quality steadily go down. This is likely due to the fact that new construction, especially in northwest St. Johns County, has exploded. Builders simply don't have the manpower to manage and build at the same level. Corners are cut and timelines are sometimes massively extended. This is leaving clients and Realtors alike feeling frustrated and without recourse when it comes to building a dream home. While you absolutely must have a Realtor, especially now, during new construction to keep you safe, with interest rates trending downward, you also need a lot of patience. 

Why You Need a Realtor for New Construction

  1. to be your advocate
  2. to help with negotiations
  3. to guide you through each phase of building, including multiple walk-throughs
  4. to represent you at the closing table
  5. to help you understand what's acceptable and what isn't from your builder
It's an amazing time to purchase the exact home you want right now with a rate that could put you in a price range higher than you could have considered earlier in 2019. But with that, you're going to have to concede the frustration of the new construction industry as it currently stands, especially in northwest St. Johns County. A Round Table Realty agent can also act as a Single Agent on your behalf, meaning they can help negotiate terms that benefit you and only you. Traditional Realtors cannot do that, and builders' agents definitely won't! 
New phases of residential construction are starting all the time, so jump on this opportunity if you're in the market for a custom home. It's also an incredible time to purchase a resale home! You can reach out to us anytime if you've got more questions about the market or new construction!

 

Check out Howard and Erin's Independent Brokerage episode discussing this very topic. Click the picture to watch:

New Construction

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