I hope you get your home!
The Kinslow Team
Coldwell Banker Residential Brokerage
Web Reference: http://www.coloradohomes.com/thekinslowteam
Interestingly, I am helping one of my buyers close on a bank-owned "new build" in Stapleton on Monday. The original price was $369,900 -- we bought it for $299,900 and they paid $5,000 in closing costs. This home was never lived in and was part of a bankruptcy for one of Stapleton's original builders.
Be VERY careful about buying new, especially from KB... seriously. KB's is truthfully one of the worst builders in Denver ... period. Shoddy work, cheap materials, high prices. New builds sound great on paper but rarely make a lot of sense, especially in this market. Chances are you WILL overpay -- builders don't "deal" as much as people think, and you will be responsible for installing a back yard, sprinkler system, new window coverings, landscaping, etc. That will add up to at least $30K out of pocket that you'll never get back.
A better idea? Buy a "new" to "newer home" with everything already in place. The price wil be lower guaranteed and you'll save a ton of money. I hope that helps ... if I can answer any other questions, please contact me at 303-906-3150 or email firstname.lastname@example.org. Best of luck! Julie Montgomery, RE/MAX Masters, Inc.
Good luck with your offer and if you need assistance let me know.
After 16 previous answers to your question, let see if I can offer you something more or different. Sure, in general, builders are definitely motivated to sell. BUT every community and every builder and every home plan within that community have many variables which factor into their motivation to sell. It isn't giving you the best advice for me to just say "yeah! builders are hurting-- go in there with a low-ball offer!" So my honest answer to your posed question "How desperate are home-builders to make a deal to sell a new home?" is "I don't know, yet but I will find out."
To elaborate-- It is because of all the variables going into each scenario for a builder that a home-buyer absolutely have an agent at their side-- which is the main message you heard from every agent responding. To clarify, an agent who has experience working with builders, understands their "side" of the picture and has a keen sense of how to get at the information necessary to secure the best terms for you. There is just too much to know and understand for a buyer to discern and figure out. A skilled and experienced agent will know how to look at the "big picture" and advise you accordingly. Yes, we do have ways! A builder isn't going to just give "it" away to a buyer who walks through the door with or without an agent-- one has to know how to ask and negotiate. Having an agent on your side makes the process far less stressful for you too. Wouldn't you rather just be able to sit back and let your Buyer Agent work for you? At no cost to you?
That being said, given the price point you mentioned-- it looks like you are considering one of the Martha Stewart Collection homes as I know that this collection's base prices are starting in the low $300's where as the Paired Homes are in the low $200's. Specifically, are you looking at Plan 2084? The reason I'd like to confirm your selection is that as a Realtor who lives and works in Stapleton, I make it a priority to stay in touch with each builders progress and I do know that for this particular community, they do not have spec homes or standing inventory. (which could certainly have given you leverage) These homes are "built to order"-- as described by KB so they only begin building one when a contract has been written/approved. Not having inventory certainly keeps their holding costs down and doesn't create a huge sense of urgency to sell. However, the other point I will bring up is that Plan 2084 and 2 others (out of 6), have recently had their base prices reduced. 2084 was previously at $359,995 and is now at $349,995. Given this price change in the 3 larger plans, that tells me that they are having some trouble "moving" them. (Plan 1958 was previously at $352,995 and now $13k less at $339,995) Does this give you an edge? Maybe. It would seem that the smaller plans are selling and they needed to do something to stimulate sales in the higher-priced plans. (looking at their current plan, do you see many of the smaller homes going up? are there many higher-end ones on schedule to build? just a quick analysis of this could give you some answers to their motivation to deal with you) Will they take less? Maybe. But there is still a "bigger picture" here-- you have yet to select your upgrades which changes the picture for the builder. Sure, they can agree to a lower base price and make you feel like you secured a great deal but then they can make it back up in your upgrade selections. So, if you ultimately end up in the same place on a final price, have you really gotten anywhere?
These are just a few of the variables that need to be considered-- there are more but I am running out of character spaces...
As a Realtor who has been on both sides of the desk in this type of scenario-- I've worked for a builder and have represented home-buyers like yourself as a Buyer Agent many times. Please know that our work doesn't stop at an accepted contract by the builder-- we are there each step of the way to guide and advise you accordingly. You've got multiple walk-thru's during construction, finish selections to be made, the inspection of the home (even though it is new, you should still have one done!), appraisal issues/concerns, understanding all the builder docs they will require, possible delays, and eventually closing on the property. And again, remember, our services are free to you-- we are compensated by the builder. So, unless you have gotten too far into the process with KB where they will not agree to you bringing a Buyer Agent in-- call one!
If you feel my answer above has served you-- please feel free to contact me. I would certainly love the opportunity to share more of my knowledge and expertise to help you secure the best terms and details on your behalf.
RealtorÂ®, GREEN Designation
Weichert, RealtorsÂ® Unique Homes
I worked for a developer in both construction management and sales. Let me know if you have more questions and best of luck with your purchase!!
KB (Paired Homes, or the Martha Stuart Collection), and there's the Wonderlands that are in your price range. Not to mention the variety of homes that are up for resale. Your options are varied and there are plenty.
If you would like to peruse Stapleton and specifically the KB homes I'd be happy to figure out which models fit you best. Once you determine the appropriate model - we can work together to submit an offer that is most comfortable to you and suites your needs.
I'd be happy to help out. Feel free to give me a can anytime and we can get started right away.
Enjoy your day,
the Nicholson-O'Donnell group
Re/Max of cherry creek inc.
finding space that fits who you are... selling space that no longer works.
Stapleton's "2009 Top Performing Realtors" - the Nicholson-O'Donnell group
#9 in Colorado, Most Homes Sold in Denver, March 2010 - the Nichoslon-O'Donnell group
Good success in your home purchase. Having sold KB and other new homes in Stapleton over the years, I would say that you need to determine what is reasonable, comfortable, and and affordable for you after getting pre-approved with a lender. Then make an offer to the builder after consulting with your Buyer's Agent. Then look very closely at the incentives that the builder is offering in conjunction with their 'preferred lender' and be sure and get a second opinion with your own lender. I have had my lenders beat the preferred lenders deal on several occasions and gone ahead to close the deal.
Stapleton, as you probably know is the favored new home area community in Denver. Over their 9 years of exixtence Stapleton has been one of the areas where prices have increased year after year at one of the highes rates in the Denver area. For that reason, the builders have been more reluctant to give big discounts and do much negotiating on ther new homes. It takes a qualified Buyer's Agent with experience in the field to get the best price, interest rates, and the most options and amenities included in the transaction. If you would like my help or would like to discuss this further let me know. I will be glad to help.
Robert McGuire ASR
Your Castle Real Estate
Thanks for your question! Yes, the builders are motivated to deal on these homes that are currently in their inventory. The reason so many people
choose me for this type of deal is that I know how to get you the best price on a home like this. Call me and I can get you a much better price than if you negotiate with KB Homes directly.
Keller Williams DTC
Metro Brokers - The Realty Werks
If homes are set to be built in the future there is not much room for bargaining.
It is best if you have an agent to go into the sales office with you for the best representation. The sales office employees work directly for the builder and you need your own agent as a witness to what is said and also to compare prices. PLEASE READ THIS POST I WROTE: http://www.trulia.com/blog/jane_grant/2010/07/new_home_buyin
I have had New Home agents give me a separate price sheet and added information on what is really available when they find out I am a an agent. If you are obtaining financing then they will usually try to get you to use their lender so be careful when they go to lock your interest rate and make certain they are in line with what is offered elsewhere! Sometimes, they try to pad the rate knowing you are using them at the builders request. So be careful before theyt lock you in at a rate!!!
My suggestion would be to use a Realtor you can trust, do a search on sold comps in the area, come up with a number you are comfortable with and make an offer. I have seen low offers accepted and/or countered of late; and many builders have incredible incentives in place. Coupled with the very low interest rates, I believe your timing is very good.
Best of luck.
Keller Williams DTC
First, you are working with employees of the builder. Then if you decide to buy, the builder uses contracts drafted by their attorneys. Additionally, many of the incentives the builder offers are tied to using their preferred lender.
I live in Staleton and deal with many of the builder here. Luckily, our builders do a really good job when it comes to customer service and not taking advantage of buyers, but there is always that chance.
Give me a call, as I would welcome the opportunity to earn your business and help guide you through the process. Are you looking at the KB paired homes or the Martha Stewarts?
Best of luck,
Check out the Base price of the home and offer somewhere around there. There may be a deal there. You have to fish it out.
They are a little desperate but usually aren't willing to deal on price. New home builds work like this. They have a base price which is probably your $350k. Then on top of that they add everything else in. For example any upgrades you might want from the standard features they put in (ie. wood floors, tile, granite counters, cabinets, AC, type of furnace, fixtures, etc.), sometimes the have a lot premium for whatever lot you purchase, and then landscaping.
Here's the deal, the better you can upgrade the house now the easier it will be to sell in the future. So what you want to try and negotiate is a huge amount of upgrades. I've seen builders offering $50k in upgrades. Do your homework and figure out exactly what you want to do. I say landscaping is a must because most people wait and then don't have the cash afterward and then the place looks like crap when you go to sell.
Granite counters, good cabinets, upgrade to nice carpet or wood and tile floors. These are the types of things that will help you sell in the future.
Personal Real Estate Consultant
The best way to buy a new home is to select a good buyers agent and take them with you. Builders that are still in business are not super flexible on price but we can sometimes get you upgrades versus price reduction. Feel free to contact me for assistance and check out my website for all my contact info and to search all the houses on the market.
Mansfield and Associates LLC