Winning the New Construction Game in Riverside
Once again the times are changing in real estate and a pent up buyer demand has the New Construction builders ecstatic. The low inventory levels have resulted in rising prices yet buyers ready to enter the fray can (and are) purchasing the home of their dreams. An understanding of the process will help to enhance the experience for buyers considering purchasing Riverside/Inland Empire new construction homes.
Knowledge is valuable so your first step is to be aware the sales counselor represents the seller, (the builder) and is obligated to protect his best interest - a fiduciary responsibility. They are working to win the best price and terms for the seller. Therefore, even though you maybe a savvy individual, it is in your best interest to have knowledgeable Realtor representation for yourself. Particularly someone experienced in working with builders.
The builder usually requires buyers to cross qualify with the in-house lender in order to be placed on a priority list. The list is used to manage the phase release process allowing pre-approved buyers the opportunity to purchase new homes on the day of a phase release in order of their position on the priority list. Not to be confusing it's a first come (to the priority list) first served proposition. An advantage is gained by those at the top of the list as these buyers have first choice when homesites are released. You know, the cul-de-sac location with the huge pie-shaped lot or the homesite with fantastic mountain views.
Word of warning: Priority lists are filling up quickly. The Sagebluff community released the Model homes last week and sold out the morning of the release!
Pre-qualifying with the builder's in-house lender offers benefits to the buyer particularily if the builder offers financial incentives tied to his lender. The buyer is now behind the driving wheel, if the buyer shops around. The in-house lender will have to be competitive with other lenders.
Negotiating incentives is an option to be considered. If you would like to use the incentive to upgrade options, such as flooring or counters; or prefer to apply the incentive to closing costs, another option maybe to use the incentive to reduce the purchase price. Many different options are available to the buyers if they know were to look.
Implementing one or all of these strategies may help buyers to win the Riverside/Inland Empire new construction home of their dreams.
If you're thinking of purchasing a new construction home or resale in Riverside/Inland Empire area call me....I have the strategies to help you win.