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Types of new
construction
Spec Homes
Good deals can be had here! The clock is ticking on
the builder, because they are paying for the loans
they took out to build the house. The longer the
house sits vacant, the more it costs the seller in
interest. Because of this, generally the further
along the construction is, the better deal you can
negotiate. One negative of buying a spec home is
that depending on how far along the construction is,
you may be locked out of choices, colors, options,
etc.
Since, with a spec home, the construction is well
under way, the time you will have to wait for the
home to be ready is greatly reduced. You don't have
to wait for plans to be drawn up, permits to be
issued or construction to begin.
Pre-Construction
Prices for homes are always lower at
pre-construction phase of a project. The earlier in
the project you buy, the lower the price will be.
This is not for everybody. Some people are able to
envision the house based on the floor plans alone,
others need to see a similar model, while others
need to see a completed model.
Builders Close-out
Be careful here! This can be one of the best ways to
buy new construction if done properly. This term
seems to be used to liberally and way too often by
builders. Lets take a closer look at "builder's
close-out" deals. When a builder completes a
development, of lets say townhouses, he may not have
sold all the units in the development. Since the
development is completed and the builder is moving
on to the next project, they don't want to sit on
the one or two remaining unsold units in the
development. Keep in mind that the builder wants to
close the sales office at the completed development
and move the staff and equipment to the next
location. A successful builder will generally always
have the "next" development going when the newly
completed development is winding down. This is where
the good deals can be found. The last few remaining
unsold units are complete and the builder is looking
to move on. Not selling the units is costing the
builder time and money! If you can find a situation
like this and a home that you like, it is an
excellent time to make a "low ball" offer and ask
for some extras on one of these last remaining
units. If things likes the appliances are not
already in the unit, you may be able to get them
included or upgraded. The down side is that the unit
is complete, all the color choices have generally
been made, options have been chosen, and the
flooring has been put down.
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