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NEW BUILDERS 1ST CHOICE
New Home Closeouts
Every week
new home builders are dropping the asking price on certain
homes. Why are builders willing to drastically cut the price
on these homes? Most new home companies are no longer private
but are part of a larger public company that is traded on the
stock market. Stocks trade higher when more homes are being
sold (even when the profit is less on some of those houses).
Also, builders need cash flow. Houses need to be sold to pay
off loans, building materials, contractors and other debts.
“Closeout”
priced homes fall into three types; homes that must be sold
before the end of the fiscal year, homes that were once under
contract or the remaining few homes in a subdivision.
Sometimes, just days before closing the builder is informed
that the buyer is unable to close. Timing is everything, first
come 1ST Choice.
NEW Builder 1ST CHOICE
has weekly contact with Metro Denver new home builders. By
having a database of closeout homes we are able to help you
get 1ST Choice
on new homes that would normally sell for much more. Having
your new home requirements in our database, we can help you
get 1st choice when the right home becomes available. Call us
at 303-833-4030 to see if there is a closeout home that meets
your requirements or send us your requirements by clicking
below.
Tips for buying a new built home
If you’re thinking of buying a
new built house, then there are three choices: You can buy
from a builder’s plans; you can buy a house the builder
already has started, or you can buy a “spec” home that the
builder already has completed.
Since being overburdened by too
many spec houses in the early 1980s, home builders have cut
way back. Some won’t even pour a foundation until they have a
signed contract.
Still, there are some out there,
whether they are neatly appointed models or in-process shells.
You should be able to negotiate
a better deal on a home that is already finished, especially
if the builder has been hanging on to it for a while.
But before you make an offer,
hoping to get a bargain, remember that this is a process of
negotiation. If you insult the builder by offering too low a
price at the start, you may never be able to arrange
What
strategies can be used when negotiating?
For
several reasons it’s best for most buyers to have a Realtor
represent them and, in addition, it costs a buyer nothing. A
purchaser is emotionally involved in the purchase, having a
professional’s counsel and representation usually brings the
best results. The friendly rep at the show home represents the
builder’s best interest, not the buyer’s best interest. Things
are a little different when negotiating with a builder to buy
a new home.
If the
market is weak at the beginning of the project, they might cut
prices.
If the
market is strong at the beginning, they might raise prices.
If things
slump later, they might be willing to cut a deal.
Keep in
mind that upgrades and optional amenities can be a pitfall.
Models typically are loaded, and buyers fall in love with
them, not realizing until later that these goodies cost extra.
Builders make the highest profit on amenities and options.
Evaluate which amenities can be more cheaply added later on.
The lowest
prices will be available before construction starts at a
subdivision or at the end of the final phase or when a
contract has fallen through. If a subdivision is nearing
completion, the builder might be eager to pull out his sales
staff and get on to the next project, thus making him more
willing to reduce prices. Builders probably will throw in
upgrades or amenities or pay your closing costs before they’ll
cut prices. A lot depends on the housing market and where the
selling cycle is.
More
Information
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