Home Buying in 75094>Question Details

BuyingTips, Home Buyer in Dallas, TX

Building a new home Vs Buying an inventory home

Asked by BuyingTips, Dallas, TX Tue Feb 5, 2013

The builders don't lower the base price and the lot price. Then customizing it with the upgrades and options will raise the price. Is choosing an inventory home and negotiating it to lower better to get more money into my pocket?

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If price/cost is your top priority then you might consider a re-sale home. If you definitely want a "new" home, you will likely find you have more negotiating room when you buy a home that is already complete (inventory home). When you build from the ground up it is usually a 4-6 month process and normally the builder will get a few more dollars out of you after you go under contract because they send you to the "design center" where you get to pick the carpet/tile/fixutres. Many of these items are "upsell" or "add on" items. It seems like no big deal to add $3000 to the price to get the better kind of flooring...and then you add $1000 for upgraded fixtures....and so on. The next thing you know, you spent an extra $10k on the house that you didn't plan to spend.

Again, you really should hire a Realtor to represent you. Your agent can help you navigate all of these items and keep you in-line with the budget that you set for yourself.

Melissa Hailey - North Texas Top Team, Realtors
Coldwell Banker Jane Henry Realtors
214-418-0180
Melissa.Hailey@ColdwellBanker.com

http://www.linkedin.com/in/melissahaileyrealtor
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1 vote Thank Flag Link Tue Feb 5, 2013
Every situation is different.
In my experience the best deals are on resales, then on inventory homes, then on build jobs.
Some people like the new smell of a home, or don't want anyone else to have lived in their home so want to pay more to buy new.
If you are price driven, rarely do you get the best deal on a new home, especially a build job.

Right now we see interest rates rising and builders increasing prices probably monthly. I expect this to happen through at least the beginning of the summer.

Just a small tick up in rates can wipe out all your savings so you have to be really careful how long you shop, where you shop, etc.
1 vote Thank Flag Link Tue Feb 5, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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i think the answer to your question is the type of house you are looking purchase and in what price range. i am currently constructing a new home and find it to be a very fun and entertaining experience. it was the best idea to go with a custom home rather than those big production builder companies. I was to select my own taste and design my own home without being limited to choice of things i wanted in my home and limited floor plans! Production companies will charge a lot of overhead on their homes! I would say if you have the time and income to do so i would find a custom builder and build on my own lot! I have done both ways and custom is absolutely better!
1 vote Thank Flag Link Tue Feb 5, 2013
Thank you sir. The problem I have faced is finding a lot in the Plano, Richardson area. Even if I can find one, that may go beyond my budget of building a home for less than $400K.
Flag Sat Feb 9, 2013
So many factors go into the equation determine what is right for your next home. Purchase new? Purchase property from seller on the market?

A GREAT Realtor can assist with all these decisions provide you data your required.

Contact my office today where I can show you many amazing homes work with your family specifications.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com

Follow me on Facebook
http://www.facebook.com/lynn911dallas
0 votes Thank Flag Link Tue Feb 5, 2013
As with so many questions with Real Estate, the answer is 'it depends'. Are your considerations primarily price and money in your pocket or do you want a customized and personalized home? If you haven't already, suggest you identify and prioritize your wants and needs in light of your budget and use those to drive your decision-making in this important investment. A good Realtor can help you do that!

Sandy Setliff
http://www.sandysetliffhomes.com
0 votes Thank Flag Link Tue Feb 5, 2013
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