Neighborhoods are Built in Phases
The large production builders build neighborhoods divided into sections called tracts. These tracts are small or large parcels of land that are subdivided and developed. Land developers put in streets and utilities, water and wastewater drainage. The developer may also put in amenities like golf courses, recreation centers, and pools, etc. Many of the large neighborhoods that are developed nowadays are master planned communities or planned unit developments (P.U.D.s). They can range from several dozen acres to several thousand acres. Some master planned communities can take ten or even twenty years for complete build out. These big communities are developed in “phases.” Phasing allows for the neighborhood to be developed in an orderly fashion and keep costs down. A typical tract neighborhood will have one builder or several builders selling homes in conjunction and in competition with each other.
Best Phase to Buy
The best times to buy during the build out of a neighborhood are at the beginning and at the end of development phases. When developers begin a community, home buyers have a hard time “picturing” a neighborhood. All they can see is a proposed plan and empty lots. Builders will often offer special “pre-construction prices.” They will offer below market home prices to spur sales and encourage buyers who can’t “see” a neighborhood because it isn’t there yet. As builders move through phases of development, they tend to increase the price of homes from phase to phase. This has the effect of increasing the value of the homes in the neighborhood, especially those purchased in the pre-construction phase.
SECRET REVEALED: The best time to buy is during the beginning and the end of a phase.
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