8 Ways to Save Big on New Construction
New construction is exploding across the Omaha area. Buyers are scrambling to keep up and the new home inventory is definitely lower than it probably should be right now. That being said, there are a lot of new construction companies such as Woodland that are making a major appearance in Elkhorn and the Omaha area. If you're looking to buy new construction, consider these 8 ingenious ways to save big on your new construction purchase.
#1. Using the right agent.
Even if you're buying new construction, you can use your own buyer's agents. A buyer's agent works solely for the benefit of the buyer, not necessarily the seller and a buyer's agent will look out for you throughout the process. A real estate agent that is well-versed in new construction will have insight on the builder, the developer, construction, location, and how to negotiate. Just because the development has set a certain price doesn't mean that you can't negotiate. However, having a buyer's agent on your side do the bidding will get you a lot farther.
#2. Choosing the best time to buy.
National builders are typically publicly-traded companies. Just any other publicly-traded company they will need to set sales goals and answer shareholders. At the end of each quarter, builders tend to be more aggressive with their incentives to meet these goals. You, as the buyer, can benefit from these incentives by doing the right time to buy. While the holiday season is technically the best time to buy new construction, winter in general or at least before the end of the first quarter is always a good time.
#3. Reconsider builder list prices.
Just because you can negotiate doesn't mean that builders like to reduce their prices. This could set a precedent for future home sales. Buyers are more likely to pay for closing costs or offer design center incentives than to necessarily drop their price. Builders are also not like a typical seller. They have no emotional attachment to the property and their decisions are based on what's good for the bottom line. Every day that a builder has a home sitting on the market they could be losing money. Look for builder inventory homes that have been on the market for longer than 45 days. You're more likely to get a better deal.
This acronym, which stands for "what you see is what you get" may or may not be representative of the house. A builder model home might not be a good representation of what you'll get with a standard home in the development. The model home is typically a higher-end version of the standard home so it will have upgrades and items that you can add to the purchase. Most of these upgrades have good profit margins for the builder and developer as well. Make sure you ask what comes standard with the home and what you might be looking at in the model home that is not standard.
#5. Consider purchasing the builders model home.
If you like the model home, you might get a better deal on all of the additional upgrades when the entire project is completed. This is the showcase home for the development and it usually has all the best features and upgrades. These homes will typically be sold once all of the lots in the development are sold as well so you might have to wait a while in order to get the model home but getting put on the waiting list is a good way to be first in line. Plus, no one's usually lived in this home but there will have been a lot of people browsing the home and touring the model home while the development is underway. If you don't mind that, you can consider it as a resale home just with all the bells and whistles.
#6. Understand the builder's lender.
Most builders will have their own lenders and they love it when you use their preferred lenders. In many cases, though even offer some enticing incentives if you use a specific lender. While you don't have to and it's not automatic, you can benefit greatly by using the preferred lender of the builder. You are welcome to shop around to find the best loan for you but depending on the incentives, the builders lender might be an excellent option to save money.
#7. Research the builder.
Not all builders are equal. Make sure you understand how they work, their reputation, and what they generally offer for most buyers. Do they have incentives for first-time homebuyers, what type of construction do they typically use and do you prefer their layouts and design options?
#8. Get everything in writing.
While this might seem obvious, many agents could promise the moon while showing the home in person. Make sure anything they promise you get in writing. Many large developers will have lengthy, lawyer written and intimidating looking purchase agreements that cover every tiny detail. Make sure you understand what you are signing and if not, have a real estate attorney go over everything clearly.
For more information on saving money with new construction, specifically in Elkhorn and around the Omaha Nebraska area, contact us at any time. We are well-versed in new construction homes, specifically Woodland Homes, and would love to help you save money on your next home purchase.