Jkandem, Home Seller in Manayunk, Philadelphia...

Just about a year ago there were new construction units selling for more than $500,000 in the Manayunk area of Philadelphia. Although I have seen

Asked by Jkandem, Manayunk, Philadelphia, PA Mon Oct 12, 2009

many new construction units, I have not seen any of them sell. Does anyone have an idea as to why builders would continue building $500K homes when there are a glut of unsold new units in the market?

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Answers

3
Renee's answer is 100% correct.

I worked for a new construction builder for 5.5 years and know for a fact that new construction prices are always inflated dramatically. Depending on what the company's margin is, pricing typically starts a lot higher than what it actually sells for; especially with smaller, not so well known builders in Northwest Philadelphia.

Having a buyer's agent represent you will benefit you in a number of ways:

1. It won't cost you a dime. The builder is the one who pays the buyer agent's commission.

2. A buyer's agent will work diligently on your behalf not only to arrive at a fair sale price, but will make sure the builder follows through with all promises regarding construction, warranty, etc.

3. They take a lot of the work and stress off your plate when working with a builder. It's a long process and can be frustrating at times.

If you still need some help understanding why this is so, please let me know and I'll help you out. Best of luck to you!

Tim
0 votes Thank Flag Link Mon Mar 15, 2010
Looking at the Trulia's market trends data.

http://www.trulia.com/real_estate/Manayunk-Philadelphia/5800…

This market has increased 36% in 5 years--that's called a bubble--so it seems there is a lot of room for prices to fall further. Good Luck
0 votes Thank Flag Link Tue Oct 13, 2009
Jkandem,

Probably because they are under contract to continue to build. That would be my guess but just because a builder sets a price for their new construction doesn't mean that's what its worth. That's why buyers need to hire their own buyer agent and never go through the builder but many home buyers are not aware that they can have their own buyer agent negotiate for them. Many buyers just go look at new construction because they were simply driving by never knowing that they are giving up their rights to private representation because once you go into a new construction home or development without your Realtor the first time, the builder won't allow you to have your own Realtor which in my opinion is wrong on so many levels.

If they are not selling its because they are priced too high and if I had a buyer looking there, I'd try to negotiate as low as I possibly could for them.

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office
http://www.reneeporsia.com
0 votes Thank Flag Link Mon Oct 12, 2009
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