Home Buying in 85323>Question Details

Carlos, Home Buyer in Phoenix, AZ

Looking into buying home builder's inventoried homes

Asked by Carlos, Phoenix, AZ Thu Oct 9, 2008

as much a I think foreclosed, short sale, bank owoned property prices listed are still high, the builders homes seem much higher, any insight on negotiating a new standing home from a builder?

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5
Carlos,

If you have an experienced agent with knowledge of new build homes you will be much better off and may be able to negotiate what you want.

Another key thing to keep in mind right now is whether or not the builder will be there next month to honor any warranties. Make sure you pick an agent that keeps up with the financial status of builders.

Of course I would be happy to help you do this.

The Arizona Native - here to assist and hoping I helped a little.

Susan Ellis
0 votes Thank Flag Link Thu Oct 9, 2008
Carlos,

If you think prices are "still high" then don't buy at this time.

Keep in mind that unless you are a 100% cash buyer interest rates are on the rise!
Last week at 5.625% and today my lender was quoting 6.25%.
Interest rates are expected to rise over the near future according to the economic experts I have been talking to.

Let me ask you:

Do you plan on buying the home to live in?
How long do you plan on owning the home?
What in your opinion is a good price to pay for a home? ($ per sqft)

This is a "rare buyers market" where you can buy homes for the same price of less than they were 10 years ago. Everything in life evens out and what went up, has come down (too far in some areas) and will go back up.

Did you know that the number of units sold when comparing July, Aug & September 2007 to July, Aug, & September of 2008 is 38% higher! There were approximately 10,100 homes sold in 2007 but 15,800 in 2008! Sales are up - bank owned properties are getting multiple bids, short sales are getting accepted, new homes are selling too.

In some areas I think the market will go down another 5%, in some areas I have seen prices increase over the previous 2 years (Adult Only Communities). But what if interest rates rise to 7, 8 or 9%?

Carlos, you have to decide what is best for you. If it doesn't feel right, then don't buy, but don't miss this excellent buyers market!


Paul and Greg (previous answers) are both right in what they have said.

Keep in mind that some builders can not go any lower because they paid "X" amount of dollars for the land and purchased building materials when they peaked. I showed a home that was a new builder spec that had been sitting since 2003 last weekend! That's a 5 year old spec home that has never been lived in!

Hire a buyer's agent REALTOR, are services are usually 100% FREE and we have access to the best data and advice.

FREE List of the 10 Best NEW Home Builder or Resale homes in the price range and area you desire: http://www.623BestBuys.com
0 votes Thank Flag Link Thu Oct 9, 2008
Carlos,

There are builders reducing prices especially if they think you will walk. I have had this happen to buyers!

If you would like any assistance feel free to contact me! There are some awesome prices in new builds available.

Lucinda
0 votes Thank Flag Link Thu Oct 9, 2008
Hi Carlos. What is your definition of still priced high? I have seem home prices lower than 1999 values for some foreclosure resale homes. Banks are looking to dump homes. I just sent out a list of 80 homes (10 years or newer) priced under $80,000 all in the Phoenix and West Valley areas.

Most new homebuilders are still the highest priced of your choices. More importantly I would caution you on buying a newbuild without REALTOR representation since many of the new communites are struggling to even be completed. At the AZ Dept of Real Estate website you can find builders/subdivions that are in risk of not being complete due to bankruptcy. A good Realtor will know this and make sure you are informed of this information not to mention other rights/protections. Remember, the sales representitives at new homes sites work for the builder not you. If you hire a Realtor, they are working for you!

If you are interested in receiving my foreclosure reports you can sign up at the website below. Good Luck.

-Greg
Web Reference: http://www.KromesRealty.com
0 votes Thank Flag Link Thu Oct 9, 2008
Hi Carlos,

I recently negotiated a deal on a new build that was "OUT OF THIS WORLD AMAZING!' I negotiated a 27% discount off the list price and had the builder practically re-do the interior with the finishes & upgrades that my buyer wanted ... all at the builder's expense, which was an additional $55,000 savings to my buyer. In addition, I had the builder pay the majority of the title/escrow fees & the first 2 months of HOA dues. Incredible? Yes! But there was one main downside to this transaction. Because I negotiated this amazing deal for my buyer, my commission was cut in half! Yes ... half! But that's okay because my buyer got the best deal ever in that community. This just goes to show that I'm not afraid of having my commission cut if it means getting a good deal for my buyer.

For more information about what I can do for you as your agent, I welcome you to visit my site or just call me to schedule a meeting.

---
PAUL WELDEN
Buyer's Agent REALTOR
HomeSmart Real Estate
0 votes Thank Flag Link Thu Oct 9, 2008
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