Will home builders increase incentives within the next six months? (Austin: for sale, loans)

[CLQ]

I have a feeling home builders will drop prices or offer increased incentives to meet 2007 year-end numbers. We are trying to time our home purchase accordingly. Does anyone agree? Any thoughts or tips on how to get the best deal possible? Also, is it easy to negotiate additional add-ons or reducing the land premiums. I have no experience in buying a new home whatsoever and will be purchasing without a buying agent. I would appreciate any advice.

[atxcio]

I would generally agree that you can negotiate a more favorable deal. If you can wait until Nov, things should only get better from a buyer's perspective. Also, if you can hit them up near/just after Thanksgiving, when they know there will basically be a dead period until January, you might wrangle the best deal possible.

Being your first home purchase, I think I'd recommend a buyers agent. It's not going to cost you anything directly, but I guess it could possibly impact the deal you could get (only a little). It might be worth it, IMO. Just be upfront with the agent and tell them you are looking to make a lowball offer, and you don't want concessions in the form of "seller-pays-closing costs" (how the realtor keeps his/her commission high by maintaining the higher sales price), you want to negotiate the rock-bottom sales price. If they know that going in, it's fine. They'll still get paid.

[PeacePlease]

Not answering your question directly, but my wife and I built our first home in Austin a little over 7 years ago. We had never built or purchased a home before. Looking back, we made a bad decision. Why? because we had no idea what to ask for. From counter tops, to tile/grout selection, to fixtures and even house layout designs.. we guessed our way through it and now we wish we made some better "educated" decisions. For example, we didn't pay attention to the size of the pantry, or the garage, or the layout of the stairs or the color of the grout (it is hell keeping grout clean).

My recommendation for a first time home buyer is to buy a used/pre-owned house. At least it gives you the chance to see what the house is like before buying.

Maybe I should write a book.. LOL

[Zzyzx]

Homebuilders are in the tank right now. In fact they appear to be reacting very slow to offering big incentives considering the condition they are in right now.

If I was to purchase a new home in todays market I would find existing homes that are for sale in that subdivision and leverage the price to whatever model I was looking at. In most cases people have added on a few upgrades to there home, so that needs to be documented to maximize your potential to get the best deal from the homebuilder. In most cases the existing home will also be on a premium lot being in the first phases, so take that into consideration too when talking with home builder.

I can't think of a better time to build a new home, the new homebuilders are struggling & interest rates are at historic lows.

[Rodeojones]

Originally Posted by PeacePlease

Not answering your question directly, but my wife and I built our first home in Austin a little over 7 years ago. We had never built or purchased a home before. Looking back, we made a bad decision. Why? because we had no idea what to ask for. From counter tops, to tile/grout selection, to fixtures and even house layout designs.. we guessed our way through it and now we wish we made some better "educated" decisions. For example, we didn't pay attention to the size of the pantry, or the garage, or the layout of the stairs or the color of the grout (it is hell keeping grout clean).

My recommendation for a first time home buyer is to buy a used/pre-owned house. At least it gives you the chance to see what the house is like before buying.

Maybe I should write a book.. LOL

I totally agree and would take it one step further. After owning a pre-built for my first, and building my own for my second, I would never build again UNLESS I could afford a high end custom home.

I am into year five of my home and am now beginning to see the poor quality workmanship and poor quality materials used. I am of the opinion that the vast majority of new homes are put together quickly and corners are cut in many areas with the end goal being mass production. In the end, the consumer loses out and the builder lines his pockets. Unless you can afford a truly high end home OR you are strong in the construction area and know what to look for, I would stay away from a new home.

My wife and I are considering relocating to Austin from Seattle and will only consider a home built at least 10 years ago.

[Torontonian]

Originally Posted by CLQ

I have a feeling home builders will drop prices or offer increased incentives.

It's happening already. I've been told about Behrens Ranch (Round Rock) and east part of Cedar Park (east of 183, north of Brushy Creek Rd, forgot the name of the subdivision)

[llkltk]

Originally Posted by CLQ

I have a feeling home builders will drop prices or offer increased incentives to meet 2007 year-end numbers. We are trying to time our home purchase accordingly. Does anyone agree? Any thoughts or tips on how to get the best deal possible? Also, is it easy to negotiate additional add-ons or reducing the land premiums. I have no experience in buying a new home whatsoever and will be purchasing without a buying agent. I would appreciate any advice.

They already are. Don't expect the downturn to last too long. It won't be like the rest of the country. Plus, it's the end of the year so they are willing to make deals. We got 15K in free upgrades and 4.5% off the price of the home. I don't expect these deals to be around next year, maybe you can get a good deal on a spec home. Everyone reads one article and assumes home prices will be dropping. Austin is still up in prices by 6%.

[texastea]

Originally Posted by Torontonian

It's happening already. I've been told about Behrens Ranch (Round Rock) and east part of Cedar Park (east of 183, north of Brushy Creek Rd, forgot the name of the subdivision)

Forest Oaks?

[looking2tex]

Do they usually have sales staff or agents on site, or some kind of open houses on the weekends. We are flying in on Saturday and want to spend an extended weekend checking out the neighborhoods around the RR area. Any recommendations are welcomed!

[Mike78613]

Loans are getting harder to qualify for also. Keep that in mind.