I just finished the 4th of July week working with a couple moving here from Illinois for a new job. We spent all week looking at homes for them and their family. Of course we looked at many resale homes in different neighborhoods, but also looked at several new construction homes. They finally chose a new construction home for several reasons regarding the floorplan, yard and overall neighborhood. One of the factors that won them over was price. They bought in a neighborhood in Mooresville that is like several in the area in that it was started by one builder who ran into problems during the economic downturn, and the neighborhood was bought by another builder or developer. The new builders who buy under these circumstances often get the lots and infrastructure at a very good price. That enables them to price their new homes very competitively. They have to be priced well in order to compete with resale homes, many of which are foreclosures or short sales which often sell at relatively low prices. In some cases, the new builders have re-set the price range of the neighborhood to lower levels to attact buyers who now tend to look at overall lower price points. That doesn’t do the original neighborhood owners any good since it makes it harder for them to sell is they choose, but that’s what has to be done by the builders to compete.
This is a particularly good time to buy new construction because of these circumstances of builders buying less expensive property. I suspect that this peculiar situation will eventually come to an end. Most of the well-located neighborhoods that were available to builders have been purchased and are selling out. When the builders want to expand, they well may have to pay more for the land and will have to pay for installation of infrastructure (surveys, roads, sewers, street lights, etc.. At some point, particularly as the inventory of all for sale housing drops further, they will no longer be able to offer such great prices on new houses.
If you’re thinking you’d like to move and buy a brand new house, now’s likely the best opportunity you’ll see for a long time. Often the builders can offer special incentives on options, equipment and mortgage rates to add to the value of the deal. Many builders are also carrying inventory homes that are ready to go or close to it so that you can choose final colors and finish materials. Even the custom builders are eager to build something for you at a good price.
Let me know if you want help with that! Builders market to real estate agents all the time because they know we are working with the bulk of buyers. They don’t discount their prices by selling directly to buyers, and buyers are well-served by having an agent working for them to help them get the best negotiated deal. We do this all the time, so are not intimidated by the process.
Call me if you want to investigate what’s out there.