You are 100% correct, home builders are able to take advantage of the fact that they can pay themselves using the construction loan, making their profit margins huge. The only real benefit of not buying the new build is the location. One downsides that I have seen with newbuilds are that they have the buyer locked into a contract with earnest money before they get qualified for a mortgage. - I'm a local investor and mortgage broker here in San Antonio Great vid!
Lumber prices are falling so now the contractors are having to stop gouging(to make the sale) that's whats going on .... not out of their generosity... They were just overcharging as though lumber prices were still high..(And profiting by a huge markup)... Generosity is not in the equation.!
There is a simple answer here.... lower the price. Sellers have become married to a price that is not realistic. Sellers need to get real. Texas, Florida are leading the trend, but it will soon be everywhere. Sell now or sell lower later.
Yes. I tell my clients we can be one of three people. We can chase the market, we can price with the market or we can be ahead of the market. Even then it’s not guaranteed to sell quick if we are ahead of the market. Two of my listing are priced ahead of the market and still not getting any activity.
You are 100% correct, home builders are able to take advantage of the fact that they can pay themselves using the construction loan, making their profit margins huge. The only real benefit of not buying the new build is the location. One downsides that I have seen with newbuilds are that they have the buyer locked into a contract with earnest money before they get qualified for a mortgage. - I'm a local investor and mortgage broker here in San Antonio
Great vid!
Thanks for the feedback. It is an interesting time for real estate with the interest rates the inventory and the NAR lawsuit.
Lumber prices are falling so now the contractors are having to stop gouging(to make the sale) that's whats going on .... not out of their generosity... They were just overcharging as though lumber prices were still high..(And profiting by a huge markup)...
Generosity is not in the equation.!
Yes it’s crazy. Most builders have a 20% or higher mark up so they have that flexibility to control their pricing a lot more than a private party.
There is a simple answer here.... lower the price. Sellers have become married to a price that is not realistic. Sellers need to get real. Texas, Florida are leading the trend, but it will soon be everywhere. Sell now or sell lower later.
Yes. I tell my clients we can be one of three people. We can chase the market, we can price with the market or we can be ahead of the market. Even then it’s not guaranteed to sell quick if we are ahead of the market. Two of my listing are priced ahead of the market and still not getting any activity.