First time home buyers beware of the “creeps”. Price creeps that is
When the market heats up and inventory shrinks, like is happening now in many parts of the country, a peculiar phenomenon begins to infect first home buyers, sometimes taking on epidemic proportions: Price Creep.
Price Creep is the tendency for first time home buyers to start house hunting with a particular price range or point in mind, then to “creep” upwards by tens or even hundreds of thousands of dollars, over the course of their house hunting experience or even during the negotiations for a particular property.
Nowhere is this more evident than in new home sales. You find the home you love, the builder happily writes the contract and then sends you to their design center where you begin to choose all those wonderful (and expensive) options for your dream home and the creep suddenly becomes an all out sprint.
Related: New Homes to be more expensive in 2013, a lot more
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