For contract written by May 10, 2009, price will include
HARDWOOD FLOORS in first level main living areas!!
Other amenities include: beech wood cabinets with new â€˜Cognacâ€™ finish, stair rail with iron balusters, stainless steel kitchen appliances including 42â€ GE side-by-side built-in refrigerator, pre-wire for surround sound in the family room, outside stone fireplace in loggia.
They already have a showcase home that's on sale for $895k:
It has the following upgrades:
Great lot backs up to open space, upgraded hardwood flooring throughout, upgraded French doors at Master Bedroom deck, GE stainless steel appliances including 42" built-in refrigerator and Monogram cooktop.
If you're looking for one that doesn't have all of that and is just a normal home, i would start 850k or below. If you look at this home that's on the market, it's very comparable:
Once again, it depends on when the exact home that you want will be finished building. The closer to the build date, the better deal you will get. The builders tend to not negotiate for homes that are still months away from completion.
"Once again, it all depends on the lot size and location, along with the upgrades."
The main reasons your noticing prices being higher or offers being turn down is:
1) They're including more upgrades in these homes so the prices hold. They're currently offering 50k in upgrades with the Santorini homes included in the price
2) The homes currently available won't be completed until Oct/Nov timeframe, they have time to sit on the homes to wait for better offers
3) The homes in this phase have larger lots, therefore go for a premium price
I agree that the market has changed. You have more buyers looking because of tax credits and a low interest rate. But what hasn't changed is the loss in jobs, a decrease in the median price of homes, and a huge inventory of foreclosures that will hit the market. After this wave of interest has passed, you'll see that demand go away. I'm predicting that will happen in the around early June.
Other factors of influence, take the days you are not putting up offers to work on your credit score, get it close to 750 or above if possible. Simple ways like signing up for the 3 bureau results together and reviewing small things like a late payment etc and then filing a dispute report (I believe at least 2 of them allow online dispute filings) will help bump up your scores. I had a late payment remark without any fault of mine which was keeping my score a little lower and once I filed the dispute, within 2 weeks it was fixed and the score got bumped. This is the preparation I was talking about.
Same thing with the lenders, always hedge your bets and have at least 3 on the line up and exchange what ever documents and get to a pre-approval at the earliest. When you are ready to give an offer and you never know when it'll happen (we didn't even expect to put an offer on the day we did), you'll be the king and you can never lose, cause you can go to multiple builders and give them your side of things. And make sure they know about your financial strength (reiterate as many times as needed), it helped us tremendously.
Good luck and since we just went through the whole thing we can possibly offer some valuable tips, feel free to post any questions.
Best of luck!
Great answer and thanks for the tips. You have the real guts and willingness to really help people although people like Vitamin are trying to stop you from doing this .
I have liked your postings in the past but recently some of your postings gave a completely wrong picture about how the market looks out there but your last posting listed out the facts and that was nice information. The market out there is very different than it was 1-2 months ago, builders were so desperate at that time but now they are selling and holding well.
BTW, KBHOME in fremont is raising prices.
Your financial strength and preparedness will get your great deals in this market.
Amber, when I say 900k-925, I think that's a starting point for negotiation. Personally, that's how much I think they're worth, about 950k right now. There were some homes that sold around 1.05 million that had tons of upgrades and nice lots late last year. And the market has gone down since then, with more job losses.
I personally heard from the sales person that they were willing to go down to below a million. Now that could be at the time when they were desperate to sell homes. I think it was about 1.5 months ago, before all this recent activity picked up. I think recently they're holding out because low interest rates and the tax break have spurred more new home buying.
But definitely, from a buying point of view, you will see these homes go back down to below a million this year. Also, as I mentioned below, size of the lot, location and upgrades could add to the price.
Good luck with your home hunting!
This forum is for home buyers and advice. Why don't you provide some useful information instead of just putting everyone down. Tell us about your purchase. Which lot did you buy, what upgrade you were able to negotiate and what price did you end up getting. This will help everyone as I'm sure people are curious.
As for me, I can buy now if I wanted. But based on the information I see, I don't feel it's a smart investment. And I have been working closely with the sales offices and the information I'm providing has been accurate. They've provided me with those numbers because I've pre-qualifed at many builders and were talking to them seriously.
If you've already bought, that's fine, enjoy your home. But for people that are on the fence, I'm providing information that may help their purchasing decision.
Don't listen to some of these idiots, they are the ones sitting in a bar and proclaiming I said this, I knew this and never really doing anything in life!!
In the end do your own research, talk to a few knowledgeable people and in the end you got to take some risks for some rewards, but this is not a bad time to be looking at optimally priced new homes.
I think you guys are either trying to prop up the market or don't know the communities well enough.
Please send me an email if you want some more information. I have sold a few homes with Brookfield both at Santorini and Hawthorne.
Just remember, the asset bubble in bay area just started deflating last year, and with Alt A resets, and growing unemployment, may have a lot more air leak before bottoming.
If you are prepared to see the price go down for a few years, this is the right time.
You will have better deals if you wait.