If you want to live in a
newly built home, be
forward about pressing
your advantages.
Just a year or two ago,
home builders were
holding fast and firm on
asking prices.
Now it's a buyer's
market.
Here are ways to get a good deal:
Colo
rado R
eal E
sta
te
Look for spec homes. These
generally are already built, never lived
in, and are simply awaiting buyers.
Many builders erected them before
the economy turned sour with
expectations that they would pull in a
higher price. Now that price is
unrealistic, and builders are
negotiating.
If your builder knows you're being
proactive, chances are he'll give
you a better deal.
It might come as a lower interest
rate, a percentage of the selling
price returned to you at closing,
shaved points, or some other
benefit.
He might offer you an in-ground
pool if you stay with his financer.
But the extra interest could cost you
much more than that over the
years.
Look for deals even if you
are buying in a
neighborhood where you
wouldn't normally expect
them.
When a builder is willing to
negotiate, he often does so
quietly, so that the people
who already bought from
him in the area won't be
upset with him.
Colo
rado R
eal E
sta
te
If you're looking in a
development, choose one that's
close to completion.
The last houses to go are
generally sold at a lower rate.
Don't feel like you're getting in on
the tail end of a deal if you're the
last move-in.
You'll already know what the
neighborhood demographics are.
You won't have questions about
whether additional homes are
going to block your view.
Another tip for purchasing a home in a development
involves walking around and chatting with people who
already live there.
Ask if the builder lived up to his promises.
You will also get a feel for the builder's reliability and
his willingness to negotiate extra features or price
cuts.
Colo
rado R
eal E
sta
te
When you're looking for your
dream home, or even just
the land to build it on, hire an
exclusive buyer's agent
(EBA).
That means your agent
works independently of the
local brokers.
You will still sign a
contract with him, but
there's no chance he will
also be representing the
seller.
And specify in your
contract, whether you go
with a EBA or a local real
estate agent, that you
want access to all
listings, not just one
agency's.
You can also retain the
right to look on your own.
Check your builder's reputation with the local
homebuilders association or architectural board.
Also ask the local Better Business Bureau if the
builder has complaints against him.
Besides reviewing complaints from other buyers,
look for contractors with unpaid bills, which could
indicate that your builder is going through a period of
instability.
Colo
rado R
eal E
sta
te
Know what you want in a home
ahead of time.
Be specific when you sit down
with the builder. Vagueness will
cost you money later.
Don't let the builder push you
into costlier options beyond your
budgeted amount-you'll pay for
them in the end.
And feel free to carry
brochures from other builders
with you when you visit each
one-the hint of competition
lubricates the wheels of deals.
Hold the builder
financially accountable.
Make sure the builder
gets the subcontractors
to sign lien waivers.
If they don't, and the
builder doesn't pay
them, they can put a lien
on your home.
Colo
rado R
eal E
sta
te
Also, make certain he cannot draw
progress payments from the bank
unless both you and the bank
officer have approved them.