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Someone appears to be making money - Homebuilder stocks are up in 2008
By robertearl | April 22, 2008
Much to many investors’ surprise, homebuilder stocks have been strong performers so far in 2008. The S&P 1,500 Homebuilder group is up 15.5% year to date, and many stocks in the group are up 25% or more. (seekingalpha.com)
In many states, new homes may only be purchased directly through the builder. However, in Northern Virginia, REALTORS can show you any of the new homes that are available.
Buyers often think that they will pay extra if they buy a new home through a REALTOR, but that is not the case. Builders figure in the selling costs when they price their homes and buyers pay the same price whether a REALTOR is involved or not. In fact, often times The Earl of Real Estate Team can save you money.
What most people do not realize is that when they go to a new homes for sale community without a REALTOR, they have no representation. The on-site tract agent works for the builder, represents the builder, and is looking out for the builder’s best interests. Many times the buyer ends up paying unnecessary fees or costs and is not aware of concessions that the builder might make.
Some of the things The Earl of Real Estate Team can help you with are:
1. Choosing a builder with a good reputation, quality construction, and good follow up. (Not one that is almost out of business or one that will sell you a home and then never come back to make any repairs!)
2. Choosing the best area with the best value, floor plan, and options; keeping resale value in mind, and keeping you out of areas with known problems.
3. Go over in detail what is included and what is optional, lot sizes, CC&R’s, etc. so that you are clear about exactly what it is that you are purchasing and can see beyond the wonderfully decorated model.
4. Choose what type of financing will work best for you, avoid unnecessary costs and guide you through the steps needed to complete your loan or negotiate for you to get a fair discount for cash.
5. Be present at your walk-through to inspect your new home and itemize any needed repairs.
If you are considering a new home, FIRST call The Earl of Real Estate Team so we can discuss possibilities and then go through some models together. The builders will cooperate with us, but only if we take you to the community the first time. So many times people drive by the models, on the spur of the moment go inside, like the home, then call to ask for our opinion and help. Once they have done this, The Earl of Real Estate Team may not be able to represent them. New home developments sometimes spend upwards of $80,000 on each model, decorating and showcasing the home. They have furniture specifically sized for the rooms, show the homes with no interior doors or screens on the windows and situate the homes on larger lots with no other homes next to or behind them. Their marketing people are full-time, professional sales people who work for them. There are some wonderful new homes out there, but it’s important that you are represented when you go out looking.
So… the next time you get ready to walk into a new home subdivision, turn around and call The Earl of Real Estate Team before you open the door and talk with the builder’s salesperson. You have everything to gain and nothing to lose.
Topics: Buy a Home, First Time Buyer, Northern Virginia Real Estate, The Earl of Real Estate Team |