Ah, the new construction "inventory home". These can be
excellent opportunities for buyers who have found the neighborhood/area they want, and are
ready to move now instead of waiting for a "to be built" home.
Builders don't want inventory homes, they have carrying costs associated with homes that sit empty. Not good for the builder, or the neighborhood to have a vacant, ready to move in home sit dark and lonely for any amount of time!
Buyers are the ones who can benefit though, if they keep certain things in mind:
-Even if the home is still under construction,
buyers may not be able to make any design changes. So whatever's been chosen for flooring/fixtures/cabinets/any other options, may be what comes with the house no matter what. This isn't always true, but it's an important question to ask
before signing the contract.
-Contingencies on the sale of another home
may not be an option. Even if it's for a few weeks till the buyers other house closes, builders may not allow any type of contingency, even a contingency on closing the other sale. It should be noted that this
may apply to both inventory and to-be-built homes.
-The same considerations apply with regard to finding out when the neighborhood will be complete, any potential development on neighboring land, homeowners association dues (and the potential for increases).
-
Compare inventory homes to any
re-sales in the neighborhood. Just because it's a builder inventory home, doesn't mean it's the best value in the neighborhood!
-
Ask for discounts, appliances, other concessions. If there's ever a chance a builder may say
yes, it's more likely on an inventory home. The worst they can say is no.
-Remember that the on-site agent
works for the builder, they represent the builder's interests, but that's why you have
your own buyer's agent, right?
-If the terms don't work out to your benefit, you can always
walk away BEFORE signing any contract of course. There's always another option out there....
Builders in Charlotte have really pulled back on building "spec" or inventory houses, the ones that are out there tend to be a result of buyer default on a contract (this is in general of course). In the coming months, inventory homes may very well become more scarce since builders seem to have really started to focus on waiting for a solid "to be built" contract before plowing ahead with construction.
Disclaimer: This is simply my opinion, and each situation should be evaluated on a case by case basis when researching any home purchase!
Diane McDermott
Real Estate Broker, REALTOR®
www.e2realestateteam.come2 Real Estate Team, Banks Calkins R.E. Inc.
"Exceeding Expectations"