Why Now Is a Great Time to Buy with a Homebuilder
Are you ready to call a new place home but still on the fence about buying a house or building one? In a seller’s market, it’s better to consider building a custom home than it is to fight for an existing property.
That being said, there are many factors to consider when building a home, but the end result is getting to move into a house that was designed and decorated to your specs. So, there’s no need to inherit someone else’s worn-out flooring or maintenance issues when you can opt for a home builder and start fresh.
Why is now a great time to buy with a home builder? Check out our three reasons below:
#1 Home Builders are Slashing Prices
The real estate market is quickly changing, and it’s affecting homebuilders. Thanks to slowing home value growth, increasing inventory, contract cancellations, and mortgage rate jumps, price cuts are becoming a new normal for home builders in terms of new construction. In fact, recent data showed that 25 percent of new homes that were built last quarter suffered price reductions.
Though all of these factors played a role, one, in particular, was the most responsible, and that is the influx of contract cancellations home builders have seen over the last several months. To boost sales and limit the number of cancellations, they turned to slashing new home prices. It’s estimated that 19 percent of builders have cut prices, which is up from 13 percent that reported doing the same just one month prior.
#2 You May Get Free Upgrades
How does upgraded flooring, counters, landscaping, or crown molding sound? As we mentioned, home builders are dealing with many terminated contracts, pushing their need to offer incentives for those willing to buy new homes.
Free upgrades is a common incentive that many builders use around the country and the discount is usually valid for up to a specific dollar amount. These deals generally allow buyers to upgrade specific features such as energy efficiency, fixtures, appliances, and more without affecting your total cost. In turn, this increases the value of your home, giving you a bit of free equity right off the bat!
#3 You May Negotiate the Use of Your Own Lender
Many builders often recommend a set of preferred mortgage lenders, whom they try to encourage you to use. This happens for many reasons, including keeping their costs down and giving them added insight into the process.
In fact, many builders even offer special discounts or deals if you use their suggested lender, which may even be money off your home’s sale price. However, you should never jump on this deal without at least considering other options such as your local Orange County lender. Ultimately you want the right size loan that comes with a good interest rate and terms you can live with, so don’t just trust what the first lender tells you. It never hurts to collect multiple quotes or even try to build a long-term relationship with one broker if you plan to buy again soon.
Closing Thoughts
The bottom line is that if you’re in the market for a new home, don’t automatically hire an agent and begin shopping the local market for existing homes. Take some time and contact local area home builders to see if they have any current deals or discounts so you can custom-design your dream home!
