Top 10 Tips for Good Deals on New Construction

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Top 10 Tips for Good Deals on New Construction
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Colorado Real Estate
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
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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.
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Colorado Real Estate
Don't expect that the builder's financing is the
best deal in town. Remember Over the years you
live in your home, you'll pay more in interest
than on principal! Shop around for the best
option.
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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.
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Colorado Real Estate
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.
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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.
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Colorado Real Estate
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.
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If the builder offers you an upgrade to
compensate for any issue, decline it in lieu of
a price cut. An upgrade might place your home's
value beyond the norm in that neighborhood, which
hurts you at resale time. Just ask for a price
cut.
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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.
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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.
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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.
Colorado Real Estate
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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.
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Colorado Real Estate
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.
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Also, make certain he cannot draw progress
payments from the bank unless both you and the
bank officer have approved them.
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Looking for a home in Denver? For more
information about Denver CO Real Estate, please
check out Colorado Real Estate.