Home Developer
Every new home builder is motivated by complex forces ranging from the state of the real estate market to economic forces to pressure from investors. Most home builders will have set goals or made predictions of the number of homes that will be sold in a given year. The pressure to meet or exceed these goals is intense, especially if the home builder company is publicly traded.
When a year is coming to an end, the home builder must take every imaginable step to meet their yearly sales targets. Every empty home in a residential community or residential development represents somebody's reputation - or even their job. As the months become days before a year ends, those whose job depends finding new home buyers for an open single family home for sale will take every imaginable effort to find a new home buyer.
For those that want to purchase a house, the home developer climate creates both risks and opportunities. People considering a new house purchase from a residential home builder are faced with unique opportunities to seize and detrimental sales ploys to avoid.
When Fall approaches the turn to Winter, a new home builder will offer discounts, freebies, loan reductions and other incentives. As each free amenity is presented, you must discern if the intention of the new home builder is simply to sell a new home or to get rid of problematic inventory.
The following four guidelines should be followed if a new house purchase is being considered at the end of the year.
Due Diligence
In today's real estate market, as the year comes to a close, selling prices of everything from single family homes for sale to luxury homes for sale to condos to new homes for first time homebuyers will be discounted. These discounts will likely only be finalized if the new house purchase is completed before the end of the year.
Everybody likes a bargain. It is likely that because it is a buyer's market, an open home in a new home development is open simply because there are more available houses. But you will want to do your due diligence. Find out how many people considered purchasing the house. Did they choose a new home from the same home builder or did they look elsewhere? Why didn't they choose the home you are considering? Be creative in your search for answers to these questions. For example, find out if there are other homes of the same model you are considering and ask these owners of similar homes about their experience and evaluate if the deal is as good as it seems. If the home builder can stand by their product, they may even offer to put you in touch with other happy homeowners. Also, if possible, find a home inspector independent of the one recommended by the new home builder.
