Hi all. A bit of background about myself. I have a full time job. I don't have any deadline when to stop working. My primary home is in San Jose. I built an ADU. I recently got a preapproval to purchase another property. Looking at the East Bay. Would new homes be a good option in Antioch, Pittsburgh or River Island be a good idea since that is my price point and have it rented? I just don't have the time and energy to be in a bidding war. Thanks for all your feedbacks.
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
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@Rhyna Orillaneda I have been telling people the last 20 months to look in the areas you are talking about (as well as Oakley) to buy in a new home development so as to avoid a bidding war. It's an extremely smart move.
The only three glitches are
1. They usually make you get approved with their lender, even if you already have a pre-approval from a current lender.
2. They also usually find creative ways to make you (unkowingly) use them to double end the listing so that they represent you on the buy side as well as being the listing agents.
3. You won't be in a bidding war but you will most likely still pay more than you anticipated. I have a client I am representing on the buy side of a new home development in Antioch. In March of this year they first started marketing one of their models for $525,000. Client went out there in April to look at this particular model, the fixed price had already risen $540,000 since the second phase was now being released. Client said, "I like the model, where do I sign." They agent for the home developer said, "We will call you and let you know when you can actually sign paperwork for the property,....probably in October or November, we anticipate a 6 month delay due to a labor shortage, lumber costs going up, etc. and whatever the price is in October or November you will need to pay the higher price, there is no way to lock in the $540,000." Sure enough, they called my client right before Thanksgiving,...the new price....$627, 500. It was very much a "take it or leave it" situation.
@Brian Garlington - thanks so much for your reply! You have responded to my queries on 2 of my posts. Really appreciate your time. But it’s so good knowing what to expect. If it does increase the price after the construction is done, it probably would still be the same as when I am bidding an old home!
@Brian Garlington - how would you compare the 3 areas? Antioch, Pittsburgh and Oakley? My goal is buy and hold as long as possible till I retire.. lol. Thanks again.