Building A Home Part 3: Development Options and Choices
Part 3, Development options and choices.
Many builders offer homes in developments where they are the exclusive builder.
A new home in a matter of months! Yes it is possible. Here is what you need to know.
- Pricing: When looking through options, it may seem some builders have much better prices. The real question to ask is: What is included? 'Pricing strategy' varies from builder to builder.
Some will have very low 'Base' prices, but practically everything is an 'Upgrade' which adds $100,000 to the price.
Other builders will offer a higher 'base price', but include features that may the home attractive and comfortable even with no 'upgrades'.
To compare apples to apples, ask them to price the same features in the same size home, so you can compare the bottom line.
Many communities have 'Lot Premiums' for the best lots, so make sure you select a lot you like before asking for a price.
- Incentive: An incentive may be offered to entice you to buy. Sales strategy makes them 'Limited time offers' to get you to buy sooner rather than later. These may be reasonable, or it could be a bate and switch. Having a Realtor who knows the builders and their pricing strategy is helpful to ensure you get the best deal possible.
Many builders employ new home salespeople to sit in the model homes and sell. These folks are not Realtors, just salespeople for the builder. Keep this in mind before disclosing information that may hurt your negotiation.
Many Builders tie any incentive to using their preferred title company and lender. This can be fine for a buyer, but compare interest rate and terms with preferred lenders before committing to ensure you are getting a reasonable rate and terms.
- Locations: When looking for a new home, you may be set on a certain school district or area.
Think about your taxes and resale value before settling on a location. Having a local Realtor pro can ensure you know all your options within your target area. We may be able to suggest options you may not have entertained on your own.
On a new home, taxes have not been established, so make sure you know what property taxes will reasonably be, before committing to a mortgage.
- Quality: Not every home is created equal!
No one wants to buy an inferior home. Do you know what features to look for in a new home? Many higher standards can be easily achieved by minimal costs. Selecting a builder who gives a higher level of quality will be well worth it in the end.
- Resale value and stability: Protect your investment!
Make sure the builder you are purchasing from is established and has a history of satisfied customers. Nothing can be worse than buying a new home, only to see the builder slide into bankruptcy or chaos. Financial stability is essential to honor the new home warranty you will receive and provide a quality product.
- Time: If you are not familiar with the market, you can spend many hours figuring out all the above items. Our new home experts know the market, know the lots, and know how to match you with the best options based on your needs. The best part? It does not cost you anything. As a buyer, the compensation your Realtor receives comes from the seller, but their duty is to represent your interest and serve you.