You better believe it! Keeping in mind, Frogman’s posting regarding the possibility of home-builders facing bankruptcy….. With inventory levels rising, and interest rates staying consistent, new home builders are pulling out all of the stops in hopes of “un-loading” their remaining inventory.
Builder’s are offering different buyer loan incentives as an appeal to set themselves aside from the competition. They offer covering costs to “Buy-Down” the rate and lower the buyer’s monthly mortgage. Builder’s are also offering to cover any non-recurring and/or recurring closing costs for a certain length of time. This includes paying months or even years of HOA fee’s and taxes, upon lender approval.
Some builder’s are beginning to again roll-out the popular “Builder Trade-In” programs. Developed in the early 90’s, this program assists builders with the sale of their new homes or condos by arranging for them to take the buyers’ existing homes in trade. In a marketplace where houses are slow to sell, builders’ contingent buyers are sometimes unable to close escrow on new homes. This program creates a device to turn the builders’ contingent sales into non-contingent sales.
Realizing time is of the essence; home builders are becoming more and more willing to color outside of the purchase agreement lines. With this said, as a buyer, it is essential to have your own representation when buying a new home. Someone who is familiar with the different incentives and what each has to offer, someone who can provide you with all of the facts and figures so you can make a wise decision. As an agent, it is crucial to be aware of the pros and cons for each offering, and be able to read between the lines in order to represents your client’s best interest.