NEW CONSTRUCTION / SPEC HOMES
Here's the REAL truth about Home Builders and New Construction
Before you visit a single model home, or talk to any builder’s sales reps, educate yourself and read the information we’ve provided below. You’ll be glad you did!
We receive daily email listing updates from all of the builders. We have inside knowledge on move-in-ready spec homes, how long they've been on the market, and which new homes are being offered at discounted prices. We work with David Weekley Homes, Trendmaker Homes, Perry Homes, Village Builders, Fairmont Homes, Highland Homes, Partners in Building, Lennar Homes, D.R. Horton, Westin, Newland Homes, Ashton Woods, Pulte Homes, Chesmar Homes, Ryland Homes, Taylor Morrison, Toll Brothers, Princeton Homes, Plantation Homes, CalAtlantic Homes, Beazer Homes, GreenCo Builders, Coventry Homes, Ravenna Homes, Meritage Homes, Newmark Homes, Darling Homes, Saratoga Homes, J. Patrick Homes, Gehan Homes, K. Hovnanian, Gateway Homes, J. Kyle Homes, Legend Homes, Emerald Homes, Keystone Classic Homes, and LGI Homes.
BOTTOM LINE - Unless you don't mind giving the builder extra money, don't visit a new home builder without a Licensed TX Realtor®. Allow us negotiate with the builder on your behalf when it comes to price, extras, upgrades, and closing costs. Our experience will save you $$$, and it costs you nothing!
If you don't have a REALTOR® representing you, the builder makes more money.
As you ride around new neighborhoods looking at homes and visit a model home, you're greeted by a sales person who works for the builder. Now here is the secret - the builder has already budgeted for there to be commission paid to both their agent and the agent representing the buyer. Now, if you work directly with the company agent, the Builder makes more money because they didn’t have to pay an additional Realtor fee. So the truth is, if you allow us to represent you, it costs you nothing, since the Builder has our fees already in their budget. If you don't have a REALTOR® representing you, the builder makes more money - period!
The Price IS Negotiable!
Most people assume that the floor plan and price they have in their model home is what you will need to pay. But the secret is, just like existing homes for sale, this is also a negotiable price. Granted, there won’t be as much bargaining room; but the home is for sale and the Builder wants to sell it. One thing to remember is that Builders are in the business and know they can’t over price homes. But, the answer is always NO until you ask. This reason alone is reason enough to have a REALTOR® negotiating on YOUR behalf - working directly with their sales agent!
They WILL Include Options!
We recently represented a New Construction buyer. Not only were we able to get over $30K off of the asking price on a brand new model spec home, we were able to get ALL of their closing costs paid, get additional landscaping, and even got the builder to throw in furniture items and décor items that were used to stage the home! Now this is not the case for all new home purchases, but without our representation, they would have never been able to get this much! Our REALTOR® representation costs you nothing! Builders will often give you some options if you pay their asking price. Why? They need to maintain the values, since they will build more homes and need to sell them for the same or slightly higher price. If you have a good REALTOR® representing you, they will know what options the builder is offering and the total amount being offered.
They will pay Some or ALL of your Closing Costs!
We get emails almost daily from Builder Reps stating if we bring them buyers, they will pay most of their closing costs. But if you're just riding around and enter a model home, you will never know this. Builders know which REALTORS® bring the most buyers to them and keep them informed of special pricing, feature options, and closing cost offered. Many of them have preferred finance companies that offer them additional fees paid for the buyer!
The Longer a Home is in their Inventory - the MORE the Discounts!!! But how would you know this without us???
A builder's favorite kind of buyer is one who selects a lot and a model to be built on that lot. The builder then has a firm contract for price and terms, and knows that when a home is completed, there is a closing. The builder gets their money and the buyer gets their home. However, in today’s market this is far more rare. Most of the time the builder constructs several Spec homes (homes for sale, but with not contract to close). As time goes on, and these homes don’t sell, they cost the builder more and more money. Also, most builders are like you and your credit cards. You have a limit they will allow you not to go over. Builders are very similar. Their lenders will only allow them to borrow a certain amount of money for spec homes. They then have to sell some of these spec homes to get more money from the bank. This is when the most discounts, options and closing costs are offered. We receive "REALTOR® ONLY" emails with lists of homes & spec homes being offered for the most savings, BUT ONLY REALTORS® KNOW ABOUT THESE HOMES, and ONLY REALTORS® KNOW WHICH HOMES HAVE BEEN ON THE MARKET THE LONGEST! This can translate into SIGNIFICANT savings for you!!!