Home building giant Lennar Corp reported a 23 percent gain in sales contracts for the quarter ending August 31st. This kind of growth is not unusual with many builders here in the Sacramento housing market.
The reason for some of this growth is builders are using sales incentives to lure buyers off the fence. These include free upgrades of amenities like premium flooring, granite counter tops, appliances and financial assistance for the buyer, such as covering closing costs. That helps the buyer, but it effectively reduces the selling price and builders profit so they would prefer to limit the giveaways. An experienced Realtor, if used, can help reduce cost and increase the builder incentives.
Most buyers would never think not to have a real estate agent represent them when buying a home but when it comes to new construction they go see the model homes and end up dealing with the builder’s sales team without any help or representation. This can be a costly mistake! Having an experienced agent with you, who knows what to ask and is willing to negotiate with the onsite sales person, will almost always result in a reduced price and/or increased incentives from the builder. We recently represented a buyer of a new home and were able to secure almost $15,000 in increased incentives including amenities and closing costs from the initial offer by the builder.
One of the critical elements in having an experienced Realtor on your team is taking them with you on your first visit to the builder’s model homes/office. Your agent must register with you and from that point on can work directly with the builder on the buyer’s behalf. There is no cost to having this help; your Realtor is compensated by the builder through a co-op payment program. You get help negotiating the purchase which will more than likely reduce the price and/or increase the incentives from the builder and the only cost is to make sure you include your agent when you go to look at new construction. Call your agent today, they will even drive you!
