Current Incentives by Builders (Pittsburgh, Baldwin: fit in, for sale, mortgage)

[sonalik]

This is my first home and would like to get a good guidance from you guys, about how to ask for incentives by Ryan/Heartland builders.
I am looking at typical 4bed/2.5 bath around 300k in
good school districts (Thanks to this forum for giving me good insights about it)

1. I know i want to build a new home with Ryan or Heartland only. I can get there community listing from there website. Do i still need to go with a buyers agent?
2. How do i negotiate?
3. As this is my first home in pittsburgh, want to get a good deal. Any buyers experience will be highly appreciated on what they got from these builders?
4. Is now a good "Buyers Market" in pittsburgh?

Thanks !!

[r777]

Not meaning to dampen the excitement with building a new house. I myself (well, my wife) likes to "custom" build a new house but I am having a difficult time logically justifying the decision.

My budget is around low 300k -and I find that existing houses with better quality and more add-ons can be purchased, instead of building.

I think I might be missing something -can you share what drives your decision to build.

Thanks!

Originally Posted by sonalik

This is my first home and would like to get a good guidance from you guys, about how to ask for incentives by Ryan/Heartland builders.
I am looking at typical 4bed/2.5 bath around 300k in
good school districts (Thanks to this forum for giving me good insights about it)

1. I know i want to build a new home with Ryan or Heartland only. I can get there community listing from there website. Do i still need to go with a buyers agent?
2. How do i negotiate?
3. As this is my first home in pittsburgh, want to get a good deal. Any buyers experience will be highly appreciated on what they got from these builders?
4. Is now a good "Buyers Market" in pittsburgh?

Thanks !!

[pghquest]

Originally Posted by sonalik

This is my first home and would like to get a good guidance from you guys, about how to ask for incentives by Ryan/Heartland builders.
I am looking at typical 4bed/2.5 bath around 300k in
good school districts (Thanks to this forum for giving me good insights about it)

1. I know i want to build a new home with Ryan or Heartland only. I can get there community listing from there website. Do i still need to go with a buyers agent?
2. How do i negotiate?
3. As this is my first home in pittsburgh, want to get a good deal. Any buyers experience will be highly appreciated on what they got from these builders?
4. Is now a good "Buyers Market" in pittsburgh?

Thanks !!

Its a good buyers market pretty much anywhere, Pittsburgh properties have held their value rather well compared to a lot of cities.

You can go in with a buyers agent, no harm really, but you might be able to get a better deal, (albeit slightly 1% maybe) by going direct because you could negotiate that savings in commission into part of the deal.

I would suggest you drive through several communities this developer is building, see how many homes are on the market, ask a local agent how long properties in that community sit on the market, how many homes have bought, and then put back up for sale by the buyer?

I've seen properties bought, then put right back up on the market at a loss because the buyers have been unhappy with their choices. I've also seen them bought and put back on the market at a much higher rate also.

Look around, dont be in a hurry, the worse the economy is, the better deal you'll be able to get.

[Ryan Warner]

1. If you give them the large down payment they demand, beware. They use this to give themselves the control to change interest rates--you refuse, and they'll laugh while taking your large down payment. If you decide to go with them, keep me in mind if you want to join in on a Class Action Suite against them.

2. I arrived in Maryland on a military assignment in January 07 and put down $19,500 on a new Town Home. In addition, I was charged $3,000 to lock in the interest rate at 6.5% for one loan and 7.5% for the second loan (called an 80/10 loan) for 255 days. I now realize I had been prey to pressure tactics and predatory lending practices from Ryan Homes and NVR Mortgage because now they are charging me 7.59% for one and 10.5% interest for the other loan. This is a dishonest business practice and reflects poorly on the state which receives on-going benefits from its military members. As a 20-year enlisted member of the U.S. Air Force with little money to sacrifice, I respectfully request your assistance in regaining my deposits.

3. In addition, Ryan Homes explained I would have to pay double the price for upgrades (+$15,000) if I didn’t use their lender (NVR Mortgage). They described this mark up as a half-off upgrade incentive. It's actually only greater leverege from NVR Mortgage when they raise your rates and you consider going to another lender.

4. After six months and with three 1-month construction-delay tactics, NVR mortgage has informed me that I must now pay 1% more for one loan and 3% more for the other loan. As you are aware, these 1% and 3% increases amount to a significantly higher house payment and a great deal of money over a 30 year period. Since informing me of the higher rates, the NVR representative told me I could either pay the new rates or lose my $19,500 down payment and $3,000 lock-in fees.

5. After researching competitive local mortgage rates, other lenders are still offering 6.75% and 7.59% interest on 80/10 loans for my 816 credit rt. None have gone up to the 10.5% NVR is now charging. So the NVR representative reminded me that using outside lenders would double the cost of my locked-in upgrades. In addition, NVR is charging $4,500 in loan “junk fees” while local competitive lenders are charging $50 in such fees.

After 20 years in the service and 19 years of marriage, Ryan and NVR Mortgage have stolen our future. My wife and I are devestated and barely get any sleep. We can no longer afford to buy a home--they have nearly half of our life savings, for nothing. Of course, we could have just agreed to pay 10.5 percent interest....

[pghquest]

Originally Posted by Ryan Warner

1. If you give them the large down payment they demand, beware. They use this to give themselves the control to change interest rates--you refuse, and they'll laugh while taking your large down payment. If you decide to go with them, keep me in mind if you want to join in on a Class Action Suite against them.

2. I arrived in Maryland on a military assignment in January 07 and put down $19,500 on a new Town Home. In addition, I was charged $3,000 to lock in the interest rate at 6.5% for one loan and 7.5% for the second loan (called an 80/10 loan) for 255 days. I now realize I had been prey to pressure tactics and predatory lending practices from Ryan Homes and NVR Mortgage because now they are charging me 7.59% for one and 10.5% interest for the other loan. This is a dishonest business practice and reflects poorly on the state which receives on-going benefits from its military members. As a 20-year enlisted member of the U.S. Air Force with little money to sacrifice, I respectfully request your assistance in regaining my deposits.

3. In addition, Ryan Homes explained I would have to pay double the price for upgrades (+$15,000) if I didn’t use their lender (NVR Mortgage). They described this mark up as a half-off upgrade incentive. It's actually only greater leverege from NVR Mortgage when they raise your rates and you consider going to another lender.

4. After six months and with three 1-month construction-delay tactics, NVR mortgage has informed me that I must now pay 1% more for one loan and 3% more for the other loan. As you are aware, these 1% and 3% increases amount to a significantly higher house payment and a great deal of money over a 30 year period. Since informing me of the higher rates, the NVR representative told me I could either pay the new rates or lose my $19,500 down payment and $3,000 lock-in fees.

5. After researching competitive local mortgage rates, other lenders are still offering 6.75% and 7.59% interest on 80/10 loans for my 816 credit rt. None have gone up to the 10.5% NVR is now charging. So the NVR representative reminded me that using outside lenders would double the cost of my locked-in upgrades. In addition, NVR is charging $4,500 in loan “junk fees” while local competitive lenders are charging $50 in such fees.

After 20 years in the service and 19 years of marriage, Ryan and NVR Mortgage have stolen our future. My wife and I are devestated and barely get any sleep. We can no longer afford to buy a home--they have nearly half of our life savings, for nothing. Of course, we could have just agreed to pay 10.5 percent interest....

Thanks for your posting. My gf has been trying to push me into buying one of their homes, which I refuse due to their lack of willing to "custom" little crap.

I would "consider" financing at the 10.5%, and then doing a refi, but I'm sure they will rake you on the prepayment penalties, and it would actually be cheaper to pay them the extra fee for the customization.

Something surely missing in the negoations of your deal for sure.

One other option, might be for you to flip the deal to another buyer. but it would depend on your contract.

[elwooko]

Originally Posted by sonalik

This is my first home and would like to get a good guidance from you guys, about how to ask for incentives by Ryan/Heartland builders.
I am looking at typical 4bed/2.5 bath around 300k in
good school districts (Thanks to this forum for giving me good insights about it)

1. I know i want to build a new home with Ryan or Heartland only. I can get there community listing from there website. Do i still need to go with a buyers agent?
2. How do i negotiate?
3. As this is my first home in pittsburgh, want to get a good deal. Any buyers experience will be highly appreciated on what they got from these builders?
4. Is now a good "Buyers Market" in pittsburgh?

Thanks !!

1.) I would call them directly as there are new developments that are not listed on their website. Faster you get to a site the better the lot you get.
2.) Negotiation was pretty much no existent when we bought our Ryan Home. Closing Costs is the one area that you can try to lower w/ Good Faith Estimates from other banks.
3.) Further away from downtown means cheaper prices... Same house in Baldwin vs. Jefferson Hills was 50k cheaper... a little further down the road in Elizabeth are better deals (Worse area though...)
4.) Like others have said... where isnt a good buyers market?

[tysgm]

I'm also looking at a Ryan home south of Pgh and was wondering how you made out negotiating a price and which community you selected. I've read articles that suggest it is better to go in with a buyers agent, but I don't know how to find out if the builder pays the agents commission. Does anyone know how to find out how many homes they have sitting "complete in inventory"? I understand that could be a benefit in trying to negotiate a price or even some incentives.

[Lighting Guy]

I know this is a really old post, but I found it doing a google for Ryan homes and NVR, so I figured I would post the answers for others...

Ryan doesn't do "spec" homes, which is what I assume you meaning by sitting complete in inventory. Ryan does pay the commision of your agent. We haven't made it as far as locking in a rate yet, but I'm betting that you could negotiate with other lender's GFE's against NVR.