There's been a lot of discussion about the solvency of builders lately. Some builders are picking up and leaving subdivisions where they've been selling homes, but with slower home sales now, they're looking for greener pastures.
Today, the experience you'll have with any builder is based on how good the sales rep and field supervisor, who's overseeing the construction, are. Do they answer your questions or do they just give you 'lip service'?
Right now, no matter who the builder is, I would check with the Better Business Bureau, ask for some references and talk with those who recently built with the builder, make sure that everything you want is in writing (don't be in a rush to sign) and make sure that you're able to have a qualified home inspector (with new construction experience) visit the home site 2 - 6 times during the construction.
I would also have the builder's paperwork approved by a real estate attorney. Some builders won't let you change the pre-typed verbiage in the agreement, but at least you'll understand what you're signing before you agree to it.
I would also ask them how many recent sales have been in the neighborhood and how many homes are currently under construction. What percentage of the subdivision is completed? If it's at the very beginning stage, you need to determine if it's in a desirable area that consumers will want to move into and become your neighbors. I would think builders are hungry right now to make sales. I know of builders, who are laying off workers. Builders may want you to think they're in control, but you have the money. Be willing to walk away if the builder rep is being difficult. Find out what options the builder offers with the floor plan you like. Are they willing to make an modifications to the floor plan? Expect to pay extra charges if you make changes after your selections are made.
It's important for you to have an experienced, buyer's agent on your side, who can help you negotiate successfully with a builder.
Also, if they're offering incentives, be sure that they benefit you. Some builders own the mortgage companies that they recommend you get approved through. That's just another profit center for them. You need to look at their mortgage financing programs closely and compare to other mortgage companies in the area. Don't be teased into getting a 'below market', temporary 'buy-down" interest rate. Make sure that you comfortably qualify at the top interest rate.
If you have questions about any of this, I can go into more details with you.
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