A NOTE
CONCERNING NORTH TEXAS REAL ESTATE
TIMING CAN MEAN SAVINGS
GETTING OVER
THE 3% REALTOR®
COMMISSION
FINANCING? DO WE USE THE BUILDER'S MORTGAGE COMPANY OR OUR
OWN?
FIND THE RIGHT BUILDER AND COMMUNITY FOR YOU - KNOW WHAT YOU
WANT
KEEP AN OPEN EYE FOR PRE-CONSTRUCTION SALES EVENTS
USE YOUR REALTOR®
AS A LEVERAGE TOOL IN YOUR NEW HOME NEGOTIATIONS
REAL ESTATE AS AN
INVESTMENT
FINALLY
A NOTE
CONCERNING NORTH TEXAS REAL ESTATE
Unlike California and much of the East Coast money is made or
lost on Real Estate in North Texas market when you buy. By
finding an exceptional value "up front" you lock in your
equity cushion. On the other hand, if you fall in love with a
particular house and fail to consider its CURRENT REAL MARKET
WORTH, you can easily develop a bad case of buyers remorse
once reality sets in or worse if your plans change and you
find yourself selling sooner than later at a MEASURABLE LOSS.
Yes, homes do appreciate with inflation in a general sense.
Since the mid 90's homes have increased in value about 60 to
100%. If you live in certain "City Areas" your rate of
appreciation can be higher. Location is always key along with
scarcity of land. In the out lying areas Home appreciation is
dependent upon in most cases the "New Home Factor." New Home
Construction will affect you home's value if you try and sell
shortly after you buy.
Looking at the "Bright Side" of buying a North Texas Home when
compared to Homes in California, the East Coast or even in
some Mid West States is that you can buy MORE HOUSE for your
money and live a lifestyle you could only dream about in other
parts of the Country. So while you like the "pricing" of North
Texas Real Estate you must remember NOT to over pay "Up
front." If you decide to buy a Home anywhere in the Collin
County or North Texas area, McKinney Home Rebate will help you
find the most home for the least cost. We understand North
Texas Real Estate and can help you BUY RIGHT!
BACK
TIMING CAN MEAN SAVINGS
BUYING DURING NOVEMBER THROUGH EARLY MARCH CAN MEAN
LOWER BUILDER PRICES AND LOWER INTEREST RATES! KNOWING THE END
OF A BUILDER'S FISCAL YEAR CAN ALSO MEAN ADDED SAVINGS IF
YOU ARE READY WHEN THE DEALS ARE BEING MADE!
LINK: BUY LOW NOW, SELL HIGH
LATER! HOW CAN I DO THAT??
EXAMPLES:
Last February McKinney Home
Rebate got word of this Huge Builder Sales Event FIRST
and informed our Clients days before the Weekend Sale started.
This Sale was discounting New Inventory Homes at Craig Ranch
up to $40,000 Dollars. $40,000 off homes priced around
$200,000 is a 20% price cut (like buying a Brand New
Foreclosure with FULL WARRANTY!) To get right to the
point by Sunday evening all 13 inventory homes sold and 13
buyers got instant home equity because their TIMING was RIGHT!
Keep in mind is that if you had worked with me you would also
have received an additional cash Rebate of $3000 Dollars
on top of the $40,000 price reduction versus leaving it
behind on the Closing Table.
See
examples of actual offerings in McKinney:
BACK
GETTING
OVER THE 3% REALTOR®
COMMISSION
If
you can't get past the idea that a Realtor®
can save you money on your New Home purchase and help you NOT
make costly mistakes when you get to the contract table then
please read on. Actually the 3% Realtor®
Commission does 2 IMPORTANT THINGS for YOU.
1. Pays for and provides YOU with Buyer
Representation from an experienced professional THAT WILL
PROTECT YOUR FINANCIAL INTERESTS. Remember the
Builder's Sales Agent is an AGENT for the BUILDER. Who is YOUR
AGENT when you're ready to Contract? How do you know your
getting the lowest price or other concessions?? Have you seen
a MARKET ANALYSIS so you know the price you are about to PAY
is FAIR?
2. Gives the Builder a financially effective means to
MARKET their New Homes to the Public.
In short 3% is a minor marketing expense for the builder to
pay for the continual stream of home sales they realize
through Realtors®. Also
and even more importantly is the 3% is NEVER PAID until a HOME
IS SOLD unlike Radio, Newspaper and mass mail outs that have
to be PAID with the possibility of NO SALE and ADD Thousands
of dollars of cost burden to the HOME you want to PAY LESS
for!
Realtors®
in the DFW Market sell anywhere from 50% to 90% of all New
Homes that are SOLD! Without Realtor®
sales, there would be few builders to choose from and fewer
banks who would be willing to finance New Home constructions.
Without Realtors®,
finance and marketing charges would eat away from builders
profits and either drive them from business or drive up costs.
BACK
FINANCING? DO WE USE THE BUILDER'S MORTGAGE COMPANY OR OUR
OWN?
If
the Builder is discounting their prices to clear inventory or
to get contracts then going with the Builder's mortgage
company is your best
course of Action. You can always refinance afterwards. Our
clients get options with the builder that forces them to
compete with market interest rates. With
McKinney Home Rebate we can provide leading mortgage lenders
who can put together competitive loan packages and as a client
of ARG they have agreed to provide the most competitive
rates without charging an Origination Point. In many ways
this competes with some of the benefits provided by a
builders mortgage company.
BACK
FIND THE RIGHT BUILDER AND COMMUNITY FOR YOU - KNOW WHAT YOU
WANT
To begin with find a home, community and subdivision
that you really like. Talk to the Builder's sales rep and ask
him to contact you or your realtor®
the moment a great special comes along. Many times with
inventory or weekend sales events if you're the last to know,
Specials become meaningless.
A
client of mine just contracted with an area Builder. He got a
call from the sales rep who told him he would get a $25K price
reduction only IF he contracted that weekend - and he did! He
had told the builder he would buy when the price was right and
had negotiated for about 8 weeks with no success. When he got
the call about the price reductions he was ready to act.
Having me as his buyer representative had NO BEARING on the
DISCOUNT offered. In addition to the $25K reduction in price
he will also get a Cash Rebate for over $2400 dollars!
BACK
KEEP AN OPEN EYE FOR PRE-CONSTRUCTION SALES EVENTS
Also look for Pre-Construction sales promotions and don't
forget to ask ALL the builders that you visit if they have any
Grand Openings planned in the area. These are usually very
aggressive sales events. Two of my clients last year got the
lowest prices offered in a new Subdivision plus a nifty
$5,000 Rooms to Go Gift Card plus my Buyer Rebate. Its hard to
have buyers remorse when you strike such a good deal! At
Pre-construction Grand Opening sales Builders
want 'contracts' and are willing to discount liberally -
especially when they can't even show you a model!
BACK
USE YOUR REALTOR®
AS A LEVERAGE TOOL IN YOUR NEW HOME NEGOTIATIONS
Contrary to what many home buyers believe one of the
advantages of telling a Builder's Sales Rep that you are
working with a 'Realtor®'
is that it makes that Rep KNOW they WILL have to
compete to get YOUR business. What may seem at a casual
glance to be a burden to the price negotiation process
actually becomes a financial leverage or benefit that you can
and should use when negotiating.
For example, a recent client of mine
employed this strategy to successfully obtain an
additional $6K in builder concessions. For him it meant
getting the elevation he wanted on his new home. For the
builder it meant a signed contract. This particular builder
almost never discounts more than what corporate allows, but
they did for him. During the negotiations I spoke to the
builder's rep directly and told her that my client, although
fully qualified and ready to contract, would most likely
not buy their home unless they would agree to the
elevation change without added cost and that there were 2
other builders that were also being considered. Again my
client had time on his side and had his homework done.
In this case he waited out the builder stuck to his cards and
got his price. This was a case of "working" a better
deal then being ready to respond to a fire sale announcement
where the 'first ones in' gets the best selection and deal.
In
addition to the extra $6K in builder concession my client also
received another $19K in discounts and closing cost benefits.
Then of course he still gets a tidy $2700 Cash Rebate
from me at 'Closing' to help him enjoy his new home that much
better.
BACK
If
you're an investor (not a flipper) I can help you package a deal with a
builder for a negotiated fee. Buying New Properties provide
warranty advantages and are Renter Ready! McKinney actually
has a shortage of quality Rental Properties.
