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Look for these Builder incentives

By Scott Skinner

Mortgage and Lending with Liberty One Lending

November 08, 2008 12:52 PM

Let me suggest that you look for these Builder incentives when you make offers and negotiate the purchase of a home from a builder.

* Inventory ’spec’ s (Completed homes, ) are opportunities as these completed homes sit, accruing interest or tying up cash, in builder inventory. The lower pricing on many of these are incentives alone.
* Closing Costs and (some HOA fees) paid through use of Builder’s preferred lender - maximums are controlled by RESPA (not the builder)
* Upgrades at reduced cost on appliances, flooring, counters and cabinets, even pools and patios from Standard features
* Lot Premium Reductions - get a premium lot for less * Many builders are offering bonus to Realtors. Many Realtors will split this commission with the buyer as additional cost savings to the client.

Contact a real estate agent who specializes in new home builders and communities. New Home specialists can help you negotiate price and incentives.

Bottom Line, It is a buyer’s market. More and more it is ‘Ask and you shall receive.’

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Anonymous

Hold on a minute

#1. Get an attorney who specializes in real estate. Builder purchase agreement forms are a disaster for consumers and expose them to tremendous liability.

#2. If you get an agent specializing in new home construction as well, use the attorney to negotiate your contract with that agent/broker. Make sure to eliminate any junk fees to the broker (administration fees for example) and make sure the agent doesn't represent builders. You want an agent this expert in buyer representation. You don't want a dual agent.

#3. Don't use the builder's in-house services. Keeping mortgage and title services separate and distinct from the builder provides checks and balances to the transaction that are absolutely necessary. Imagine if you use the builder's lender and that lender gets to select the appraiser too (they do). Guess what price that appraiser is going to appraise the price for? The purchase price even if you overpay. That's just one example and doesn't even get into the overcharges you are likely to pay.

Nov 09, 2008 05:43 AM

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