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Why The Next Two Weeks May Be The Best Time To Buy New Construction All Year  Why The Next Two Weeks May Be The Best Time To Buy New Construction All Year


Why The Next Two Weeks May Be The Best Time To Buy New Construction All Year

Written By: Jaymi Naciri
Wednesday, December 20, 2017

If youre looking to buy a home and you would really like to get something in escrow before the end of the year, you might be facing a "slim pickins" situation. Inventory issues have plagued the market for several years, and despite a positive real estate outlook, the lack of homes has kept many buyers out of the game.

Thats one of the reasons home buyers have been choosing new U.S. homes. They jumped last month to the highest level since October 2007, ldquo;a sign that Americans mdash; unable to find existing homes mdash; are turning to new construction,rdquo; said USA Today. ldquo;New home sales leapt 18.9 in September to a seasonally adjusted annual rate of 667,000, the most in a decade. Sales rose in all regions including the South, where they increased nearly 26.rdquo;

Existing home inventory isnt expected to get better until at least the last half of 2018. So, if a brand new home is something youd consider, think about this: the next two weeks could be the best time to buy all year.

Builders are especially motivated to move their homes this time of year so they can get them off the books. Be sure to ask in the sales office about "featured" plans or homes, which may mean the builder is willing to work with buyers to get these particular homes sold. While that may not mean a discount on the price, builders will often throw in upgrades that make them more attractive.

"A lot of the national builders are publicly traded companies. They need to meet sales goals and answer to the shareholders of that company," said Inman. "For that reason, toward the end of a quarter, builders tend to be more aggressive with their incentives in order to meet these sales goals. The December holiday season is another great time to buy. Most of the country is out shopping and traveling to see family. Very few people shop for homes this time of the year. For that reason, tis the season to find some great incentives to purchase a new home."

Additional incentives

Many builders also offer thousands of dollars in incentives to buyers who choose to get their loan through the builders preferred lender. Those incentives mean "it actually may be less expensive to buy anbsp;new homenbsp;than a resale," Ron Sozio, builder client >

Those builder incentives can include closing costs and/or a buy-down of your interest rate, and can be as much as two or three percent of either the sales price or the loan amount - be sure to ask which one so you have a clear understanding of what youre paying.

Want more reasons to look at a new construction home? How about the fact that its brand new, never been lived in, and reflects your needs, taste, and >

If you are going to go look for new construction homes, make sure you bring your real estate agent to ensure you get the best deal. "Some buyers dont feel anbsp;real estate agentnbsp;is necessary whennbsp;building a new home. They think that because there is a sales agent on-site they dont need to bring in anyone else, right? Wrong," said The Goodhart Group.

"This mistake could cost you. That on-site person works for and represents the seller. A real estate agent will work on your behalf. A good one will know what questions to ask that can get you a sizable closing cost credit from the seller. Not to mention -- a seasoned agent will know how to negotiate the contract for upgrades and finishes that dont come standard with the home. Perhaps most important is the fact that you dont pay for the real estate agents service. "The builder pays YOUR agents commission so it costs you nothing to have someone represent you during the new construction process."





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Updated: Friday, March 29, 2024

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