Discover The BEST Opportunity for Homebuyers Today | Ep. 10

Introduction

One of the best opportunities in the housing market today is new construction. This is surprising because throughout my real estate career, I would always expect that you would be paying a premium for a brand new home compared to resale homes. But because of how strange the last year or so has been, builders are now offering really incredible incentives to try and get homebuyers in the door.

Why New Construction is Perfect for DIY Homebuyers

1. Less Emotional Process

   • Unlike resale homes, builders approach sales purely from a business perspective

   • Decisions are based on numbers, not emotional attachment

   • More standardized processes and contracts

2. Builder's Representatives

   • Often focused on customer service

   • Motivated by good reviews and customer satisfaction

   • More predictable than traditional real estate transactions

3. Quality Assurance

   • Everything is brand new

   • Multiple inspections throughout construction

   • Latest building codes and safety standards

   • Builder warranties provide protection

Negotiating with Builders: The Insider's Playbook

Understanding Builder Psychology

• Builders resist reducing base prices

  • Public record concerns

  • Appraisal implications

  • Neighborhood value protection

What Builders Will Negotiate

1. Upgrades and Design Options

   • Structural changes

   • Higher-end finishes

   • Appliance packages

   • Window treatments

2. Financial Incentives

   • Closing costs

   • Interest rate buydowns

   • Design center credits

Best Times to Negotiate

1. End of Fiscal Quarter

   • Builders focused on hitting numbers

   • More willing to make deals

2. Community Timing

   • New community openings

   • Final lots in existing communities

   • Phase one purchases often best value

Protecting Yourself: Essential Guidelines

Rule #1: Get Everything in Writing

• Document all promises

• Record all changes

• Confirm all upgrades

• Keep detailed records

Rule #2: Multiple Inspections

1. Pre-drywall Inspection

   • Check rough-ins

   • Document systems placement

   • Take photos for future reference

2. Pre-closing Inspection

   • Full home inspection

   • Blue tape walkthrough

   • Document all issues

3. Warranty Inspection

   • Schedule at 11 months

   • Document any issues

   • Submit before warranty expires

Design Center Strategy

Save Money By:

1. Identifying DIY-friendly upgrades

   • Light fixtures

   • Door hardware

   • Faucets

   • Ceiling fans

2. Let Builder Handle:

   • Cabinetry

   • Countertops

   • Electrical

   • Plumbing

   • Gas lines

3. Smart Planning:

   • Pre-wire for future upgrades

   • Compare builder vs retail pricing

   • Plan post-closing improvements

Action Items for New Construction Buyers

1. Research the Builder

   • Read online reviews

   • Visit completed communities

   • Talk to current homeowners

   • Check company history (especially pre-2008)

2. Finance Smart

   • Get pre-approved

   • Shop multiple lenders

   • Compare builder's preferred lender

   • Negotiate rates and terms

3. Track Everything

   • Create detailed documentation system

   • Keep all promises in writing

   • Maintain organized records

   • Use DIY Homebuyer Academy resources

Leveraging No Agent Status

Remember: Builders typically build in 3% for buyer's agent commission. As a DIY buyer:

• Use this as negotiating leverage

• Seek equivalent value in upgrades or credits

• Don't let builder keep the savings

• Ensure you benefit from the cost reduction

For more detailed information and resources, join our free school community at skool.com/diyhomebuyer