One thing that is favorable for people who want to buy new construction is something that most people cringe at: economic recession. The time during a recession can constitute one of the best conditions under which to buy a newly built home. Home prices are generally significantly lower during a recession than during times when the economy is booming. So if you are planning on building a home and want to find a great piece of land, it may be wise to look for the right land then. A recession is particularly helpful for the prices of spec homes or inventory homes. A spec, or speculative, home is one that has been built without having been sold, in the hope that an interested buyer will come along and buy it. The reason for this is that the lots are already purchased and developed and the work is committed on these homes and the builder does not want to be stuck paying for the upkeep and other expenses of the newly constructed home. They want a buyer to take it off of their hands. They are often prone to negotiate a lower price in order to avoid carrying the overhead costs. You can often get a much better deal or maybe get a home with many upgrades that would not otherwise have been included in the original plans. You can expect to save a lot of money on a newly built home during a recession.
Even without being in a recession an economical way to buy a home is to look for a home that has been built on spec. This is a home that a builder has completed or is nearing the completion of construction, but without having been sold. The home has been built with the intention that it will be sold. They want a buyer as soon as possible so that they can recover the money they have shelled out on the build and do not continue to incur costs for carrying the home while it is just sitting idle there unsold. This is definitely a much more affordable choice than choosing to have a custom home built to your exact specifications. You may get fewer personalized options when buying a spec home or an inventory home but on the other hand the costs can be as low as half the price of building a custom made home where you design the home and make all your own choices.
Another consideration is the long term investment value of the home rather than just thinking about the initial price. If you consider all the things that will increase the value of the home in the long run and will increase the resale price of the home then you may get the best long term deal by selecting with care. Evaluate the location, size of the lot, and the floor plan. Some floor plans will help the home’s value and by making the home more attractive to more people. Subdivisions that are near transportation, schools, and other community facilities are better for when you want to sell.
As a closing point, your best advice is to negotiate firmly and from a strong bargaining position. You can assert yourself. This is your home and the builder needs to make the deal. The company that built the home needs to work with you rather than have you go to some other builder or choose another home, so it never hurts to bring it up. Explore what your options are and find out everything you can about your financing choices. You can get a great deal and the perfect home by taking steps to be an informed buyer.
This information was made available by Automated Homefinder, Colorado’s online resource for information on Lafayette CO homes for sale.