Finding the Best Deals From Builders/New Construction

In this market the key to finding the best deals is all about timing.  Finding a home where the owners need to sale but have equity is the best chance to buy something well under market.  The same goes for builders of new construction.  They purposely try to limit supply and keep demand (and prices) high.  The economy is definitely a factor, but even in a good economy the builder doesn’t want to just dump 85 units all on the market at the same time.  So, they do it in phases.

The key is timing in the phases.  If you’re buying the first home for sale by the builder you have to understand that the sales price that goes for is going to be the basis for all other sales.  If (at the end of all the phases) there are 85 homes for sale and the first house goes for a 10% discount, every sale after that is going to have to be close to that discounted price because every other buy should be aware of the sales price.  Builders blow out the units at the end.  If they’re selling units 83, 84, and 85 of 85 total, that’s when you go in aggressive.  And when I say aggressive, I mean aggressive.  Ask for upgrades, closing costs, AND a 10-15% discount.  To have the showroom, models, sign-twirler and whole dog-and-pony show going on, the builder is paying money.  Many times the builder is more interested in closing out the project and taking the flags down rather than haggling for another $5k-$10k.  Go in with a strong down payment or at least highly qualified, and walk yourself into equity.

New to new construction, or don’t know where to start looking?  Feel free to contact me.