Let a Weak Housing Market Save You
Thousands on Home Construction
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Saving Money on Home Construction
Does the current housing market have you singing the blues? Are you worried that affording a new home is just beyond your reach? As in any housing market, “these are the best of times and the worst of times,” therefore it is imperative for you to do your homework before deciding whether you should go ahead with your home purchase now or wait. Please keep reading to learn how you can make a weak housing market work to your advantage and have you living in a new home sooner than you think.
Why Consider New Home Construction
You may have set your eyes on new home construction when desiring a place to live, deciding that an older home is something you aren’t willing to tackle. That is a good decision as a new home gives you more control over the home building process and you need not be concerned with maintenance and repairs for several years.
A new home can cost more, significantly more than existing housing, but that isn’t always the case. The gap can be reduced during an overall weak housing market if you consider the following options to lower your purchase costs:
- Make a deal with the home builder – The longer a home sits on the market, the more it will cost its owner. In the case of a builder who is finding it difficult to move homes or has experienced a rash of cancelled orders, any creditworthy buyer is a candidate for a new home. Although home building costs are fixed, a builder who wants to see his homes sold will take a lower price, especially for just completed new home construction. You could tens of thousands of dollars on the price of new housing by being in the right place at the right time.
- Get the extras included for free – In some cases a builder may not be willing to budge much on price but he could be convinced to include certain desirable extras to help sweeten the deal. A deck, upgraded bathroom fixtures, or a fireplace are some items a builder may agree to provide for no extra charge provided you meet his price. You could find yourself getting thousands of dollars of extras for free and owning a better quality home for less money.
- Shop around for a loan as the market is in your favor – Some large home construction projects are backed by banks or mortgage companies who are interested in only one thing: seeing that all of the homes are sold. Home building lives or dies on the backs of consumers. If you have good credit, then you are the type of customer eager lenders want. After being beaten up by the sub-prime housing mess, lenders will see you as a godsend.
- If all else fails, play hardball – Some home building markets are in awful shape, much worse than what the builder may care to admit. Have a knowledgeable and impartial realtor share with you the housing comparisons (comps) for other new construction projects in your area and learn how much home values have retreated over the past year. That $365,000 price tag for new construction could be grossly overpriced given the market downturn. Don’t expect that information to be revealed to you by the builder -– do the research to understand exactly where you stand.
The home building industry is taking it on the chin, but that doesn’t mean that you must. If new home construction is desirable for you, then equip yourself with the knowledge you need in order to become a homeowner. Let your local home building company supply the price breaks you need in order for you to realize your dreams.
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