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Avoid competitive used home bidding wars by buying new construction

November 19, 2020

If you’re trying to buy a home in the Greater Ann Arbor area, you’re well aware of just how competitive the used home real estate market is right now. Even during a nationwide health pandemic that has affected nearly every industry and economy in a different way, competition in the housing market has remained fierce due to record-low mortgage rates, a shortage of homes for sale and a sudden wave of migration made possible by remote working and learning. Homes all over Michigan (and the rest of the country) are selling in record time, often with dozens of showings and above-asking offers made within 48 hours of going on the market. Norfolk Homes recognizes this and we have the solution—purchase a new-construction home, either a quick move-in option that is already under construction or build new from the ground up. 

The high demand for homes often results in a bidding war, where multiple prospective buyers are competing for the same house. According to Redfin, 56.8% of home purchases in October were subject to bidding wars, making it the sixth straight month in which bidding-war rates reached over 50%. During these bidding wars, terms can get pretty crazy—from offers thousands above the asking price to paying in cash, it’s hard to find a home within your budget that will actually stay within your budget throughout the process. This is where Norfolk Homes comes in, with a major advantage over the used home market.

Buying a new construction home always has its benefits, like improved energy efficiency, custom personalization options, a new-home warranty, state-of-the-art smart home technology and increased safety precautions—plus the ability to choose the perfect floor plan for your family. But when homes are flying off the market at an unrealistic rate for unaffordable prices, new construction homes bring an even more enticing benefit: no bidding wars. 

For homebuyers, this means you can be comfortable throughout the process because there are no surprises. You know exactly what you’re going to be paying, and when you’re going to pay it—no settling on a budget and then having to exceed it to beat out someone else for the home of your dreams. Norfolk Homes simplifies the building process into eight straightforward steps, a few of which include designating your budget for the project (including your interior finishes) and obtaining a pre-qualification letter from one of our preferred lenders. We are very transparent in the process and will keep you to the budget you’ve set during floor plan selection, site selection and customizations. 

The only people who hate bidding wars more than homebuyers? Realtors. They often have to advise clients to skip important parts of a used home purchase (like the inspection) just to put their clients in a more favorable position to win the war. No one wants to advise their clients to pay more than market value for a property, nor do they want to do multiple rounds of paperwork and negotiations only to be outbid time and time again. We’re proud to work with realtors and their clients to find the best floor plan, community and finishes for your Greater Ann Arbor area clients. Realtors can even register their clients on our website to ensure they’re represented early on. 

If you’re tired  of losing the battle of bidding wars, it’s time to consider buying a new-construction home instead. Since 1993, Norfolk Homes has had one goal in mind: to build beautiful, distinctive homes with character that served their surrounding communities. We’re constantly rethinking and reevaluating what homeowners want in today’s market, as we believe your home should revolve around you. To discover our homes and where we build and learn the advantages of building new over buying used, contact us today.

It was great meeting with the two of you the other day. We had a blast picking out our options and are really excited to move forward on our home.

Byran & Rebecca