To Be Built Home Purchases in A Buyer’s Market
A buyer’s market, such as the one we have in the Fredericksburg real estate market, means a lot of good things for buyers. Things like great prices, closing costs paid by the sellers, potential down-payment assistance from the sellers, and more. These are the things that are driving buyers back into a position to buy real estate in Fredericksburg. The Stafford Real Estate market, and other surrounding counties are seeing a nice pick up in market activity because of these conditions as well.
An interesting nuance for buyers, in a buyer’s market, is dealing with builders. There are two distinct scenarios buyers encounter when buying new homes in the Fredericksburg real estate market…
- Homes that are already built, or under construction, and
- Homes that are “to be built.”
With homes that are already built, or well on their way to completion, often builders are more likely to negotiate favorably with buyers. They have capital that has been laid out, and they want to recoup expenses, and generate whatever profit possible.
However, with homes that are “to be built,” in many cases the expenses incurred are far less. Many builders today are not even breaking ground until they have a ratified contract in hand. As a result, with many builders, buyers will find the builder far less ready to negotiate as favorably on a to be built home, as they would on one that is move in ready.
The upshot of that is that buyers may lose many of the benefits of a strong buyer’s market, when buying a “to be built” home. I am not saying you shouldn’t purchase one of these homes. I am saying, that the Fredericksburg real estate market is one where buyers should not be sacrificing much on terms, conditions and pricing.
I understand, and I advise here that each situation is unique, so choose the property you wish to purchase carefully. Understand the value of what you are purchasing. That value must include cash layout for closing costs, and any terms of the purchase that have financial impact on the value today, and in the future.
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