7 Tips For Getting The BEST DEAL On New Construction Homes

here are seven tips that you can count on  and apply on any Market when it comes to   new construction number one hire a buyer's agent  that is knowledgeable about new home sales did   you know that it costs you nothing to hire a  buyer's agent to represent you in a new home   sales transaction if it doesn't cost you any  money why wouldn't you get representation by   a professional that is super knowledgeable about  new home sales and have experience helping other   buyers like yourself get into one wouldn't you  want to have a professional real estate agent by   your side through the entire process and if you  have questions they'll be accessible to answer   them there's a myth that as a buyer you may be  getting a better deal if you're not working with   a buyer's agent but that is not true at all the  truth is the commission that the buyer's agent   receives from this transaction is set aside from  the Builder it is not factored into the purchase   price of the home hiring a buyer's agent has  huge benefits you guys some of the benefits for   starters the buyer's agent knows all the right  questions questions to ask the Builder in order   to negotiate a better deal for you as the buyer I  actually made a video about tips in choosing and   hiring the right real estate agent so make sure  you check out that video the card is right here   number two Builders incentives Builders may be  promoting their incentives online or at their   sales office so make sure you ask what are the  builders incentives are they offering to cover   a portion or the entire closing cost which is  approximately three percent of your purchase   price are they offering interest rate buy Downs  to help you with your monthly payment since in the   last six months the interest rates have gone up  significantly I just got an escrow open for one of   my new home buyers and I was able to negotiate six  percent towards closing costs as well as interest   rate buy down that's a huge savings imagine six  percent that would have come out of your pocket   that the builders are able to compensate for  you in order to make that transaction as more   affordable for you as far as the monthly payments  if the builders are offering these incentives   don't you want to take advantage of them depending  on the Builder these Builder incentives may be   contingent in using one of their partnered lender  so make sure your realtor asks that question with   the builder to see if there's any contingencies  or requirements that are needed to take advantage   of all of their Builder incentives I've also  experienced Builders offering flooring upgrades   appliance packages and Window Coverings as part of  their Builders incentives flooring upgrades range   anywhere from about twenty thousand to forty  five thousand and Builders are offering these   floor upgrades so that instead of the carpet that  may be a standard or maybe a Standard Tile you're   able to upgrade your flooring into a more enhanced  upgraded tile or wood based on your preference   appliance package that I have seen include new  stainless steel appliances that include washer   dryer and fridge and that's usually an average  about five thousand dollars in value window   coverings such as blinds and shutters have also  been offered to my clients that are interested   in purchasing a new home recently as we get  closer to the end of the year more and more   Builders are offering these Builder incentives  in order to close all of their inventory homes   number three lender incentives if you choose to  work with a builder's preferred lender there may   be additional incentives that you could ask for  that is on top of the six percent that you already   have received from the Builder last summer when  it was a seller's market the Builder would only   offer two percent tourist closing and the lender  would only offer one percent towards closing   which equaled three percent total towards the  closing costs now in the shift in Market things   have changed with the demand that has slowed  down significantly Builders and lenders are   both offering huge incentives in order to close  out their inventory homes you'd be surprised to   see what lenders could offer in addition to that  six percent in today's shift in Market ask your   realtor to ask it just never hurts to ask and  you never know what the lenders would also be   able to offer on top of the Builder's incentives  by the way if we haven't met yet konichiwa my   name is kauri nagao your Las Vegas lifestyle  specialist helping you find your new home no   matter where you are buying in the United States  or internationally I could assist you make sure   you like subscribe and engage with me let's keep  going number four cash incentives what if you're   purchasing in cash is there a difference between  cash purchase versus is financing absolutely   cash is always golden so you'll want to make sure  your will to ask what cash incentives are offered   paying cash has a lot of advantages including the  fact that you could waive the appraisal and also   minimize the timeline when it comes to closing  if you really wanted to close quickly in less   than two weeks with a cash purchase it's possible  number five design credits ask your agents about   design credits what are design credits well let me  share with you that every builder for any new home   purchase there's always a base price a lot premium  structural upgrades and then design upgrades now   in the design upgrades that's where you could  ask for design credits what if the Builder is   able to offer you a design credit of anywhere from  ten thousand to twenty five thousand that would   cover a lot of things right depending on what  you're looking for it may cover your a flooring   upgrade it may cover your upgrade in the cabinets  maybe your upgrades and Hardware or your staircase   there's so much options when you have these design  credits to apply towards your home now where are   you planning to buy this year comment below which  state you're watching this from I would love to   know now let's keep going number six lot premium  as I mentioned earlier the total price of the   home includes not only the base price but the lot  premium structural upgrades and design upgrades so   when it comes to lot premium that's also another  line item that your Realtors could ask if there's   any negotiation on the price why not ask the  builders if they're able to negotiate a lower lot   premium Now lot premium ranges from communities to  communities so I could share with you what I have   experienced I've seen communities that have zero  lot premium all the way to about 15 or 20 000 lot   premium I've also experienced luxury communities  where the lot premiums would start at 50 000 and   go all the way to 250 000. funny story I actually  went to tour a model home in one of the luxurious   communities here and when I took my buyers there  and we absolutely love their floor plan and we're   discussed same pricing when I had asked them about  the lot premium the lot premium was actually 250   000 and I almost fell off my chair and the reason  why the law premium was that expensive was because   it was the best law in the community it was  definitely oversized elevated and with views   comment below if you would pay 250 000 for that  particular lot in my opinion every line item   on your purchase agreement is negotiable so make  sure your Realtors ask if any of those line items   are negotiable with the builders and saving the  best for last number seven spec homes first let   me Define what a spec home is spec home stands for  speculation homes that Builders would build based   on the speculation that this particular home with  all of their design and upgrades will sell easily   in my opinion spec homes are fantastic because the  Builder has added a lot of their upgrades that are   most popular based on each community so maybe it  is an upgrade such as a next gen Suite or maybe   it is an upgrade like an additional bedroom for  some of these floor plans the builders will know   exactly what floor plans are most popular and  what upgrades have been the most popular within   each Community these spec homes are ready to be  moved in which means you don't have to waste any   time for any of the building process spec homes  are like Model Homes but the biggest difference   in my opinion is that model homes on average  would have anywhere from 30 percent and up on   all of the upgrades including structural and  design and electrical spec homes in comparison   spec homes usually have upgrades in the amount of  15 to 20 percent another big difference between   a spec home and a model home is that a spec home  is move-in ready you could purchase it right now   and you could get the keys right away versus a  model home is used to showcase the community so   the model homes won't be released for purchase  until the very very end of the closeout of that   particular Community I personally love selling  spec homes because I think you have the best of   both worlds you have an almost model home like  home with all the popular upgrades and again you   have a professional Builders interior design  team that have helped you design the home so   when you look at the different tile finishes and  the different kind of upgrades that they've chosen   obviously those are all the best and the trending  upgrades that you can see so you know just moving   into a home you don't really have to think outside  of the box to see what kind of upgrades you'll   have to do or do a lot of research or even hire  an intern a designer because the spec home already   has been designed by the builders interior design  team there's a lot of room to negotiate with the   builders on these spec homes because again the  questions that your Realtors may ask the Builder   is is there a closeout sale of a community or  maybe it's towards the end of the year and they   have certain quotas to meet and maybe they'll just  want to sell that spec home their inventory home   as quickly as possible so definitely more room to  negotiate when it comes to spec homes yesterday I   was touring some new home communities with the  buyer and in speaking with the new home sales   consultant they are very motivated to sell some  of their spec homes and their inventory homes   that are currently on the market by the end of the  year so when I asked him what kind of incentives   are they offering I was really shocked to hear  that they are offering incentives up to 125   000 off the market price in order to get these  homes closed by the end of this year what do you   guys think about spec homes comment below is that  something for you let me know in the comments and   I'd love to hear more about what your thoughts  are on spec homes after hearing what the spec   homes are for tips on buying new construction  make sure you check out my playlist I really   appreciate you watching my videos I hope they're  very educational and useful for you especially   if you're relocating to a new state thank you so  much and I look forward to seeing on the next one

Channel: Kaori Luxury Real Estate

Views: 27,517

Keywords: buying new construction home process, housing market, new construction vs resale, new construction realtor, pros and cons of buying new construction, new construction home buying process, new build mortgage process, new build financing, construction loan, questions to ask when buying a new construction home, buying new construction home, buying new construction, tips for buying new construction, the new home construction process, buying new construction process

Id: evPmACgKqPw

Length: 10min 19sec (619 seconds)

Published: Thu Dec 15 2022