Adventures in New Home Buying
May 6, 2008 by Admin · Leave a Comment
I got a call this week from a woman who had read my blog post "Are New Construction Prices Negotiable?", and she was curious about how to deal with builders in Prince George’s County who seem to be playing some sort of "Shell Game" when it comes to dropping the price, charging more for upgrades, and generally causing confusion in regards to how much the bottom line is really going to be.
I’m a firm believer that builders do this intentionally. They’re struggling for profits, and in the housing pinch they’re forced to drop the prices to get you as a buyer in their door. Once you’re at their model, you’re on their turf, and their job is to do everything they can to jack the final price of the home up.
It’s then taken a step further when each model representative makes it a point to brag about how energy efficient they are, or how stainless and granite is standard, blah blah blah…..
I made a suggestion to this buyer that there may be another option to explore that might make a bit more sense if flexibility is an option. New construction typically takes 4-6 months to complete, and in communities that have been builder for more than a year, it’s highly possible that you may be able to find a short sale in the community that could be purchased for considerably less that you could have the home built for
It allows you to negotiate the price of the house completely, not be beaten up by the builder over the cost of each individual upgrade. It also places you in a great bargaining position with both the homeowner and the bank that’s holding the note: You’re able to purchase the property for less that it was bought new, and the bank gets to avoid another foreclosure dragging on their profit margins.
It may not be a perfect solution for everyone, but for true bargain hunters looking for a sensible, affordable alternative, this is a great option.
~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog
