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Old 10-11-2009, 09:40 PM
 
37 posts, read 68,174 times
Reputation: 22
Default Big talk from homebuilders.

I just had a sales rep from Lennar trying to talk me into a $240K house. Saying it was a great deal, even in today's market. And that the houses are going fast. The way she talked, the market is not only turned around, but booming! I know there are more buyers than sellers and a lot of houses are selling, but I didn't think it extended to home builders. Any thoughts?
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Old 10-11-2009, 10:07 PM
 
Location: NW Las Vegas - Lone Mountain
15,757 posts, read 20,291,968 times
Reputation: 2661
Quote:
Originally Posted by VegasMomof3 View Post
I just had a sales rep from Lennar trying to talk me into a $240K house. Saying it was a great deal, even in today's market. And that the houses are going fast. The way she talked, the market is not only turned around, but booming! I know there are more buyers than sellers and a lot of houses are selling, but I didn't think it extended to home builders. Any thoughts?
The overall market is booming. Record level of sales driven by exceptionally low prices. But the new home builders are still suffering and there is no end in sight. It makes no sense to buy above replacement cost when the market is close to 20 percent below it.

Don't buy a new home unless you absolutely have to have one...and then see if you can't find a new build that has been sitting for a year or two without being lived in. There are still some around.

Unfortunately new build is economic lunacy at this point in time.
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Old 10-12-2009, 07:59 AM
 
Location: North Las Vegas
1,536 posts, read 2,232,703 times
Reputation: 654
Quote:
Originally Posted by VegasMomof3 View Post
I just had a sales rep from Lennar trying to talk me into a $240K house. Saying it was a great deal, even in today's market. And that the houses are going fast. The way she talked, the market is not only turned around, but booming! I know there are more buyers than sellers and a lot of houses are selling, but I didn't think it extended to home builders. Any thoughts?
To say purchasing a resale home over a new home is better depends on what the buyer wants.
There are great deals in New Home communities, they run higher in pricing however new home prices have fallen builders have lowered their prices to compete with resale's in the respect that you are getting a new home that you can pick out what you want as far as floor plans and site and the home has a warranty. Most builders are only building per purchase, or some are building a couple at a time to have a little standing inventory. Lennar is a builder that includes allot of things unlike other builders,like most builders they have scaled back on what upgrades they offer and changed floor plans to be able to lower prices.
With new homes now you may have wait a few months for a home to be built so if you need a quick close you may want a resale,however most know that resale's are quick closing due to the banks.If you don't have your CC costs builders will usually pay 3% towards closing costs which in resale's right now that is difficult to get from a seller.
Builders are building close to cost, new homes have to be appraised as well and they cannot manipulate the appraiser, I just had a couple purchase a new home from Pardee homes over a resale for a couple of reasons, they wanted a certain neighborhood,and they didn't want to get into a bidding war. Also they had the earnest money, they qualified for first time buyer of $8000.00. But they didn't have Closing Costs the Builder paid the closing costs, and when the home appraised it appraised $30,000 less and the builder sold them the home at the reduced price.
Not all builders will do this, most will, you should have your own realtor with you when you go to a new home community, the sales person at those properties are the realtor for the developer and that is like using the same attorney in a divorce.

Your realtor will look out for you, when you go to a new home builder if you don't know what questions to ask you could be giving up money. They aren't doing anything illegal it's just that if you don't ask key questions they don't volunteer any additional info.
For instance in a resale the seller pays the transfer tax in the state of Nevada, but builders don't have to, in boom times new home builders did for the most part.
Now days some will pay part of the transfer tax some won't pay any and if you don't know to ask that the builder who might have paid half won't, because you didn't ask.
You need to ask if there is going to be sids or LIDs you don't want to find it out after you fall in love with the place and find out when you go to contract. Those are just a few examples, you won't get a better deal if you don't use a realtor, builders pay outside realtors out of there advertising budgets. So if a new home builders agent tells you, you would get a better deal by not having your own realtor is false.
Right now the way the market is whether you purchase a resale or a brand new built home you should not purchase it to sell in a couple of years,you need to keep a home at least 5 years.

Good luck in your house hunting
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Old 10-12-2009, 09:56 AM
 
278 posts, read 498,150 times
Reputation: 66
i bought a new home a little over a month ago. $6500 in closing costs, backyard landscaping done (not necessarily an issue everywhere, but it is in summerlin)... appraisal came in 23K less than expected, and was able to buy it at that price without any issue.

resale versus new has a lot of pros and cons for each. for me, the resales i were looking at were priced so well, that the prices ended up getting bid up and over the list price (for reference, i began looking at resales in december of 08, decided in march of this year to go new).

so, really what you should look at with that lennar home, is :
1. can you afford it?
2. do you like the home?
3. does it have what you need/want?
4. is it located where you want/need to be?
5. is that price in line with comparable homes in the area?


Quote:
Originally Posted by olecapt View Post
The overall market is booming. Record level of sales driven by exceptionally low prices. But the new home builders are still suffering and there is no end in sight. It makes no sense to buy above replacement cost when the market is close to 20 percent below it.

Don't buy a new home unless you absolutely have to have one...and then see if you can't find a new build that has been sitting for a year or two without being lived in. There are still some around.

Unfortunately new build is economic lunacy at this point in time.
i think the market's crazy on all sides. my house appraised for 23k less than what i signed up for (thought i was going to pay 303k, ended up being 280k)... but in a cost approach appraisal, the appraiser said it would cost more to replace/build that house today (313k).
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Old 10-12-2009, 11:50 AM
 
228 posts, read 363,366 times
Reputation: 181
Quote:
Originally Posted by 007 license to sell View Post
To say purchasing a resale home over a new home is better depends on what the buyer wants.
There are great deals in New Home communities, they run higher in pricing however new home prices have fallen builders have lowered their prices to compete with resale's in the respect that you are getting a new home that you can pick out what you want as far as floor plans and site and the home has a warranty. Most builders are only building per purchase, or some are building a couple at a time to have a little standing inventory. Lennar is a builder that includes allot of things unlike other builders,like most builders they have scaled back on what upgrades they offer and changed floor plans to be able to lower prices.
With new homes now you may have wait a few months for a home to be built so if you need a quick close you may want a resale,however most know that resale's are quick closing due to the banks.If you don't have your CC costs builders will usually pay 3% towards closing costs which in resale's right now that is difficult to get from a seller.
Builders are building close to cost, new homes have to be appraised as well and they cannot manipulate the appraiser, I just had a couple purchase a new home from Pardee homes over a resale for a couple of reasons, they wanted a certain neighborhood,and they didn't want to get into a bidding war. Also they had the earnest money, they qualified for first time buyer of $8000.00. But they didn't have Closing Costs the Builder paid the closing costs, and when the home appraised it appraised $30,000 less and the builder sold them the home at the reduced price.
Not all builders will do this, most will, you should have your own realtor with you when you go to a new home community, the sales person at those properties are the realtor for the developer and that is like using the same attorney in a divorce.

Your realtor will look out for you, when you go to a new home builder if you don't know what questions to ask you could be giving up money. They aren't doing anything illegal it's just that if you don't ask key questions they don't volunteer any additional info.
For instance in a resale the seller pays the transfer tax in the state of Nevada, but builders don't have to, in boom times new home builders did for the most part.
Now days some will pay part of the transfer tax some won't pay any and if you don't know to ask that the builder who might have paid half won't, because you didn't ask.
You need to ask if there is going to be sids or LIDs you don't want to find it out after you fall in love with the place and find out when you go to contract. Those are just a few examples, you won't get a better deal if you don't use a realtor, builders pay outside realtors out of there advertising budgets. So if a new home builders agent tells you, you would get a better deal by not having your own realtor is false.
Right now the way the market is whether you purchase a resale or a brand new built home you should not purchase it to sell in a couple of years,you need to keep a home at least 5 years.

Good luck in your house hunting
From beginning to end, your post is an OUTSTANDING breakdown of insight and pros/cons regarding a new home and new home community. Very well summarized!
I went through the exact process as you describe.

My community built homes per purchase- all homes have now been built and moved into. This is a very successful approach, IMHO.
Also as you pointed out, our community lowered home prices by altering floorplans. For example, the floorplan I went with is 3bd/3.5br. Not long after I made my purchase, that exact floorplan changed to 3bd/3br but with a lower price. For me, having that half bathroom was very important, so I was willing to buy before the floorplans "downgraded" and pay more.
Additionally, at the time I purchased, the builder offered a very fair amount of money towards upgrades, which was VERY, VERY important to me. After I purchased, although home prices lowered, far less was offered towards upgrades and far less upgrade options were available.
These are all things to consider when looking into a new home and new home community.

In the end, IMHO, new home vs. resale comes down to what your (long-term) intentions are for the property and what you feel comfortable with financially.

Last edited by healthpub; 10-12-2009 at 01:14 PM..
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Old 10-12-2009, 03:34 PM
 
Location: state of enlightenment
2,236 posts, read 3,083,491 times
Reputation: 1849
Quote:
Originally Posted by VegasMomof3 View Post
I just had a sales rep from Lennar trying to talk me into a $240K house. Saying it was a great deal, even in today's market. And that the houses are going fast. The way she talked, the market is not only turned around, but booming! I know there are more buyers than sellers and a lot of houses are selling, but I didn't think it extended to home builders. Any thoughts?
She's a homebuilder, what do you expect her to say. It's always the right time to buy. "Don't get priced out".

I might want to do some reading before putting big money into a house right now.

Calm between the Tsunamis
HOMEDEBTORS: The FHA, VA, USDA Foreclosure Time Bomb (http://homedebtors.blogspot.com/2009/10/fha-va-usda-foreclosure-time-bomb.html?ref=patrick.net - broken link)
The New York Times > Log In
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Old 10-12-2009, 04:48 PM
 
Location: North Las Vegas
1,536 posts, read 2,232,703 times
Reputation: 654
Who is a home builder, reading all the blogs no one identified themselves as a home builder?
Or did I miss something?
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Old 10-12-2009, 04:54 PM
 
278 posts, read 498,150 times
Reputation: 66
Quote:
Originally Posted by 007 license to sell View Post
Who is a home builder, reading all the blogs no one identified themselves as a home builder?
Or did I miss something?
i think geos is referring to the sales rep/agent of lennar that the op (vegas mom of 3) referred to.
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Old 10-14-2009, 08:26 AM
 
Location: North Las Vegas
1,536 posts, read 2,232,703 times
Reputation: 654
Quote:
Originally Posted by uncle_el View Post
i think geos is referring to the sales rep/agent of lennar that the op (vegas mom of 3) referred to.
Your right had a blonde moment
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Old 10-14-2009, 08:48 AM
 
239 posts, read 404,332 times
Reputation: 76
That new home won't be new, after you move in......
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