There are many great advantages to buying a new home versus a pre-owned home. But they do tend to cost more, and the location is limited. Although there is not much that can be done about where the new housing tract is located, there are a few things you can do to try and get the cost of a home down. Your best options will relate directly to builder incentives. The following are a few ways you can do this.
New home purchase rebates
Just like the automotive industry, when new home sales are slow, builders may offer rebates. Sometimes it's due to the general economy, but new home sales can be slow in a particular state or even a particular new tract of homes. These rebates can take different forms, but most of them are related to a reduced commission for the real estate agent. They agree to reduce their commission, and share it with the home buyer. The way this works varies. Sometimes it can be a reduction in closing costs, but it can also be a cash amount paid to you. In this case, it will be the real estate agent that pays you the rebate.
Installation of options for your home
Because they are builders, they can make improvements to a new home at cost. They will sometimes do this for the slower moving homes in a new tract. Often these are the homes that had few the options the other homes in the same tract had. In order to sell these homes, they may offer free upgrades for one or two features. This will add value to the home without an increase in the home's price tag. Examples of these upgrades include a skylight, appliance upgrades, and additional lighting.
Using the builder's lender
Home builders have their own financial incentives for wanting new home buyers to use their lenders and related real estate services, but when their inventory is slow, they will sometimes offer incentives to use theses same services. There are various ways they can offer an incentive, including a rebate. Or perhaps they will offer to pay your closing costs. How much money you save will depend upon the alternative, so you need to estimate how much everything will cost without the builder involved.
Granted, when a builder is offering incentives to purchase their homes, it is usually because the market favors the buyer. However, this is often the best time to buy a new home. So keep the information above in mind when you are shopping for a new home. But always calculate the savings to you, and compare this to the alternative homes available, new or old. For more information, contact companies like Gr8day Realty.Share