This entry was posted on Tuesday, August 21st, 2007 at 10:53 am and is filed under Home Buying, Buy and Sell for Less. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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August 21, 2007
Buying a New Development Cheap
If you choose to ignore my warnings and go hunting for a new home, try this strategy for getting a new home for less. Hunt for a new subdivision going up in an attractive area. Walk the neighborhood, and get a feel for its value.
You should be able to locate the contact information for a few of the builders in the area. Contact them and state that you would be willing to purchase one of their model homes. These homes are used to showcase the development to other buyers interested in the new homes. These are usually the first homes completed in the development. Negotiate an option to buy at a lower price than what the other homes will be listed at, and then have the builder pay you rent while using the model home as a showcase (generally for a few months to a year’s time). If contacted early enough, the builder should be overjoyed to be able to sell the model, and will be able to offer preferential treatment.
If done correctly, you will be able to buy a home with instant equity (rare for a new development) as well as maintain cashflow for the first few months time. You’ll likely still have to hold the property for a few years to see enough profit to justify the expense of selling, but this definitely beats paying retail for a new home.
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