The Fort Hood Real Estate Market has slowed and builders are starting to see their inventories of unsold homes increase. And that's a GOOD thing for you if you are thinking of buying a brand new home when you get to Fort Hood.
Before you go out to make an offer on a new construction home, consider this: Did you know that every new home has a backstory? You aren't privy to this information (and neither am I), but the builder has a lot to consider, especially if he borrowed money to build the home. He's committed to making monthly interest payments on the money he borrowed (and the rate is much higher than your mortgage rate!) He has to respond when his bank questions him for having it in inventory so long. What is his cash flow position on this particular day? Does he need the money TODAY? Was this a home that he thought was sold, only to have the sale BOMB and the home go back on the market? All these situations are great motivators to him to accept your offer! He took a gamble, built the house, it didn't sell, and NOW maybe he's ready to cut his losses!
All that being said, you can see that a builder has a lot on his plate and some days might be more mentally frustrating than others. That's the perfect time to take your own gamble and try these five tips for making a great deal with a new home builder at Fort Hood:
1. Look for the new home that has been on the market for 300 days or more. Your real estate professional can help you with this.
2. If the price has already been reduced, go in lower with your offer (but not insultingly lower! You want this to work, right?)
3. Ask the builder for extras, like blinds, a refrigerator and/or garage door opener or lawn sprinkler system.
4. Ask the builder to cover all your closing costs and prepaids, as well as the cost of paying points to get you a lower interest rate. (Your lender can help you with this number).
5. Be brave and confident! You might get a counter offer, a total rejection of your offer, or the builder just might accept your offer and you will be doing the happy dance!
I've been working for and with the home builders at Fort Hood and in Killeen, Copperas Cove and Harker Heights for many years and have seen every conceivable kind of offer come across my desk. Builders welcome any offer, because it is a starting point to come to that meeting of the minds we all want to happen. And, upon reviewing your offer, a builder will usually do SOMETHING for you! He is more likely to give you extras instead of lowering the price, BUT...
Sometimes he WILL lower the price, too. I helped a nice couple purchase a brand new home in Copperas Cove last week that had been on the market for about 500 days. The price had already been reduced from $169,900 to $158,900. After we finished our negotiations, they got the home for $153,900 and the builder threw in a stainless steel refrigerator to match the other appliances in the house, and he agreed to pay their closing costs and do some other minor items we asked for.
One last thought: Remember. the builder that won't negotiate isn't trying to be difficult (I believe buyers usually say he's being a "horse's ass"!) He'a just not in a distressed position. He may have built the home with cash, and a bank is not in the picture pressuring him for interest payments and a quick sale. He's not being a "horse's ass" when he won't negotiate, he's just running his business!
Good Luck with your negotiations! If you need any more information about working out your best deal on a brand new home at Fort Hood, just call me at 254-681-4875 direct to my cell phone. I'll be happy to help you work it all out!
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