This month's market update is on Buying a New Home, which is timely, as we have so many new communities under construction in the Phoenix Valley of the sun.
Here are a few things to think about when buying a new home:
- Price: Builders rarely negotiate their prices. If they did, it sets a precedent for future sales. They are more likely to offer incentives or pay closing costs than to drop their price. To save on a new home look for inventory homes that have been on the market for 45 days or more. These are the new homes in which you might be able to get a good deal through better incentives.
- Representation: New home models are staffed by agents who work directly for, and represent the builder. A buyer also needs someone to look after their best interests. Some buyers think that if they don't use an agent, the builder will reduce the price of the home by the amount of the commission. Not true, again, that would set a precedent, and builders know that statistically the majority of new home buyers rely on their Realtor. Builders include buyer's agent commissions into the marketing budget of new home sales, so if a buyer goes to a new home neighborhood without a real estate agent, either the builder or the builder's agent will pocket that money.
- What you see is not what you get: New home models may not be a good representation of what comes standard with a new build. Models are typically highly updated versions. It is the builder's showcase.
- Timing: A lot of the national builders need to meet sales goals, so towards the end of a quarter builders tend to be more aggressive with their incentives. Very few people shop for homes in December. For that reason, 'tis the season to find some great incentives to purchase a new home.
- Inspections: We are all human and to err is human nature. I can tell you hundreds of stories of the silliest things that are overlooked on a construction project, regardless of the expertise and talent of any builder. And of serious issues occurring when buyers wait to do their own third party inspections months later just before the warranty expiration. Also, use an inspector specifically experienced in new home construction.
- Research: Not all new home builders are created equal. Do your homework, visit other communities the builder has built and check online reviews.
- Lenders: Most new home builders have a preferred lender and will often offer incentives, but don't assume that is going to be your best deal. Shop around and find the best loan and terms for you, not for the builder.
Want to know more about buying a new home? Give me a call and TAKE ME WITH YOU when you want to go tour new homes. Don't go into a new home neighborhood without your agent - that's me, Denise van den Bossche!
Watch my youtube on the topic at Buying A New Home in Arizona
Or Contact me denise@VDBassociates.com 602.980.0737
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