Saturday, April 24, 2010

New Construction--Is It Worth The Price?

Here in Charlotte North Carolina builders are devleoping at a rapid pace on old farms and vacant land in Charlotte and the surrounding communities. When I last was showing new construction I toured 15 different builders buidling homes. There probably is a few more that I never visited when my clients were looking at homes.

One thing that attracted my client as does most clients is the pricing of the homes. Based on what they are advertising the deal is to good of a deal to pass up; or is it? While I understand that everyone's tastes are different and what I may like in a home you may not prefer. Thus there is a wide variety of options available. But when you tour the model homes that the builder has on display they are designed with the most popular options and the high end options. That can raise the price of the home dramatically and is not included in the base price.

A builder representative job is to sell you on the house and the floor plan layout they have. Most have choices as to different floor plans availble. Thus your choices are plentiful. However; it is when they inform you that you have to vist the "design center" to go over the options and upgrades that it gets a little more on the high end price side.

They take a deposit from you (completely refundable) to hold a lot and floorplan that you want. They schedule you to visit the design center. Some builders are offering different incentives right now. I saw some offer 50% off the options you select, others offer a free gourment kitchen with the purchase of a specific floor plan and others are offering $10,000 in free options. All on the surface sound like very good incentives.

However; as my client found out. When they went to the deisgn center to price out what few options they wanted in the home and made some upgrade descisons they found the price increased by over 65% from the original price they were quoted. Once that was factored in the price of that 'new construction" was not so attractive anymore.

They had me search one to three year old homes in the same neighborhood of where they wanted to purchase this home. Much to their surprise they could buy the home they wanted with most of the options they were looking for in it for the same money as the base price fo the new home they just looked at. it made that descsion much easier for them to make at that point.

I am not advocationg not buying new construction. Just that you need to have representation when you are there. A good real Estate agent will know the "tough " questions to ask and help you make a more informed descison. You will not get your hopes up high on a home to find out that you either have to settle for less than you wanted in the house or walk away form the home you thought was going to be yours.

New Cosnstruction is still a great option out there for many people. Especially if you are looking for soemthing specific in a home. Just be careful of the add-ons and ask a lot of questions as to what is included in the base price of the home and what is an option. And have your Realtor check around for one to three year old homes that might be for sale in that neighborhood. You may find what you want at a substantial savings.

Dave dicecco

Realtor/Broker

www.davedicecco.com

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