COMPARING NEW HOME BUILDERS GIVES HOME BUYERS A LOT OF INSIGHT.
Going through the many model homes, previewing the floor plans and upgrades can be confusing to many new home buyers. However, there are many ways of judging value. One thing that I do is select a similar home style with approximately the same square feet, options and upgrades, lot sizes and features. Once the homes for each builder is designed, a simple price per square foot can be determined.
The buyers I toured with last weekend who toured about 9 new home builders in Loudoun County needed to focus on value and computing a price per square foot helps them understand that there is a lot more to understanding value than just the base price.
NEW HOMES IN ASHBURN VIRGINIA EXAMPLE.
Builder #1 - $198 per square foot
Builder #2 - $198 per square foot
Builder #3 - $180 per square foot
Builder #4 - $208 per square foot
Builder #5 - $170 per square foot
Builder #6 - $218 per square foot
It's interesting that the highest price per square foot is a local "niche" builder. It's difficult for small builders to compete with national well financed companies. Small builders do not have the purchasing power that a builder of "scale" can offer.
The lowest price per square foot is with a national builder that is offering a home with a lot of square feet and a significantly higher average base price. The final build-out price for this builder may push it out of our price range.
Touring new homes is fun. However, to help buyers come to good decisions, they need to understand value and that includes a lot more than the pretty kitchen.
Builders aren't offering much in the way of incentives these days because they are selling very well. That could all change when the "Spring Buying Season" ends and the "Summer Vacation Season" arrives.
That beautiful Granite Counter-top and Stainless Steel Appliances may be an expensive upgrade.
Courtesy, Lenn Harley, Broker, Homefinders.com , 800-711-7988, E-mail .
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