Hi Ra, some other things to consider:

1) Don't grow too attached to your current Pre-Approval * (I assume that you have done this already). Most Builders have in-house lenders, and these in-house lenders will provide incentives for you to use them. However, this doesn’t mean that using the in-house lender will be the best long-term option, depending on your "ownership timeline", down payment, and loan product strategy (FHA or traditional”). Recognize a Mortgage is much more than just a loan -- it is a financial planning instrument/tool that must be integrated into your short and long-term personal financial plan in order to satisfy your goals and needs. Email me directly and I will send you a paper that addresses the myth-conception concerning the security of paid-in home equity. Individuals who are financially conservative call this paper a huge eye-opener.

* I don't know when you were last Pre-Approved; however, be aware that a Pre-Approval is really only valid on the day it is provided because it is based on an assumed interest rate, which can certainly change the very next day. At best, it is a ballpark figure, not a guarantee. The only way to get a guarantee is to lock a loan program and rate.

2) If you do buy a new home I would still have a property inspection performed (and not one of those $200/2hr inspections!) A thorough property inspection is the cheapest insurance you will ever pay when buying a home. I personally have a Property Inspector who spends 6-8 hrs on a property ($600) and does environmental testing as part of that price. Some Realtors would never suggest this level of inspection for fear of the deal breaking up (and I have had some that did). I treat every transaction as if I’m writing the check. Of course, you do have a 10 year builder warranty, the problem is that some builders are more responsive then others. In my mind its just best to find issues before moving in so there is some urgency to correct issue(s).

3) You are smart to be looking at buying a new home versus an existing one. I believe you will find that an existing home is a better bargain from a cost vs. economic value perspective. Building material inflation makes the newly constructed home more expensive when you compare particulars between new vs. used. However, this only addresses the quantitative side of what is “better.” The qualitative review is also important as this supports a home’s price stability due to area-specific demand.

Let me know if I can help. -SteveO

Steven A. Ornellas, GRI, ABR, e-PRO, CMPS, RE Masters, MBA
REALTOR® / Mortgage Banker-Broker / Certified Mortgage Planning Specialist
http://www.Steven-Anthony.com SteveO@Steven-Anthony.com

Steven
Thanks for the time and answers. Have read your responses to other questions and didn't think you were being flip - it's all good to ask for more info before answering a question.
The additional info in your 2nd answer was great. I have been working with an agent for existing homes, but was looking at a new home as a bit different - not sure if I needed an agent for a new home purchase or not. Your comments are making me rethink my answer - maybe best to bring in someone that does this day in and day out to ensure I get the best price and assume that they will save me more than their commission...

Steven is the most honest and knowledgeable broker in this site. What he said is absolutely true. You won't be regret after listening to his advise.

Hi Ra, you are getting warmer! Seriously, I’m not trying to be flippant; I just take “writing checks” at this level pretty seriously.

How about this, visit: http://www.visitwindemere.com to really figure out what Builder and Plan you want to target. Next, in my opinion, choose a licensed Realtor to ally with and perform the investigation regarding current market pricing, get pre-approved (in needed), and then decide on your timing. Market timing is another reason to choose a Realtor, and no, not every Realtor will advise you to buy right now. I’ve been working with a client since Feb of 2007 waiting for this current market because she wanted to buy an REO when the largest amount of supply would be present. Why did we wait until now? We were waiting for the last highest spike in subprime loan resets to pass, which occurred in May, as shown here: http://docs.Steven-Anthony.com/Resets.pdf. Consider working with a professional. –SteveO

Best Regards,

Steven A. Ornellas, GRI, ABR, e-PRO, CMPS, RE Masters, MBA
REALTOR® / Mortgage Banker-Broker / Certified Mortgage Planning Specialist
http://www.Steven-Anthony.com SteveO@Steven-Anthony.com

What does your Realtor suggest?

Okay - I don't make my money in data entry or proof reading - the sf of the houses I am considering are 2000 - 2500 (not 200 - 2500). :)
Thanks

Okay - let me be more specific with my question:
Given the current trends in real estate, specificly considering the Windemere area of San Ramon, what type of % discount are new home builders typically taking for a 200 - 2500 sf single family home?
Have never bought a new home before and am looking to get an idea of what is reasonable to consider - is a 10% discount in line? is 20%? or should I just look at the average price/sf for homes in that area of San Ramon and make an offer in line with that? or is the average price/sf different between new and existing homes?
Hope this makes the question a bit easier to answer.
Thanks

101% at least. 120% at most.

Your question is simply too ...

Hi Ra, you have asked a question whose answer will depend on what specific model you are considering. The more generalized the scope of a question, the less valuable and accurate the response will be. Real Estate at its very core is a profession based on specifics, whether it's the particulars of a home, neighborhood, or city. I would suggest you provide more details about the specifics of what you are considering - I'm sure the answers from the community will be more useful if you do so.

Best Regards,

Steven A. Ornellas, GRI, ABR, e-PRO, CMPS, RE Masters, MBA
REALTOR® / Mortgage Banker-Broker / Certified Mortgage Planning Specialist

Steven Anthony Real Estate & Financial Services
Expect Excellence. Get What You Expect.™
Cell: 510.461.6011
http://www.Steven-Anthony.com SteveO@Steven-Anthony.com