New Home Builders in DFW Part 10 , Negotiation

Negotiation

New Home Builders in DFW, Tip #10
When you negotiate a contract with new home builders in DFW, remember that all concessions that you are receiving effect the bottom line, but not all of them effect it equally.

Congratulations, you are reading this and that means that you are very serious about buying a new home!  Below you will find information to help you negotiate with new home builders in DFW.  I must lead this off though by saying negotiating with new home builders in DFW is a learned skill and you as a buyer are best served having representation of a realtor who can help you organize and present your position in the best possible way to ensure you get as much as you can.

 

In the past I have worked with several buyers who said to me, “I am only asking for a $10,000 discount I don’t understand why the builder is saying No!”  In each of the cases I can recall, there was more to it, such as included options, appliances,  a waived or discounted home site premium, or the item that most often comes to mind included closing costs.  You have to remember that if the builder is including something extra in the home or giving promotion it will diminish your room for additional negotiations.  In the above instances the builder’s incentive is really a pre-negotiation with you.  They have offered an incentive to entice you to move forward and factored the cost in to their financial margin of profit.   If you think about it in this way, then the client did not just ask for a $10,000 discount it was actually much greater.  New home builders in DFW are almost always offering a promotion or incentive of some kind to encourage you to buy now.  To negotiate properly you need to know the cost of the incentive or promotion.

 

When you are negotiating with new home builders in DFW you might want to keep in mind that the $5,000 incentive is not quite $5,000 the way you equate it in your own mind.  If you have been talking to builders already and have looked at their option page, you may have noticed that the prices seem a bit higher than they do at the big box DIY center down the street.  There are a number of reasons for this but in the sake of brevity we will call this overhead costs that the builder pays and passes along to the buyer.  So, if you are negotiating for options it is important that you adjust your expectations of what you will be able to get or adjust the negotiated amount.

 

There is one area that you as a buyer will have the most challenging time negotiating, and why it is not entirely a bad thing.  I have 2 words for you “base price.”   This “price” number is meant to evoke a sense of the bottom or the beginning, meaning from here things only go up.  Many New home builders in DFW have a policy of not selling homes for less than base price.  There are several reasons that builders will limit negotiations below base price including eroding profit margins, appearance of declining value in the neighborhood, and actually reducing appraisal values of future homes to name a few.  Here is an area to choose carefully.  Your goal in negotiation is to get the best deal possible,  just remember that the best deal today is not a good deal if it costs you later….

 

I hope you have enjoyed new home builders in DFW and found the information informative. In the next post I will be talking more about the contract. If you have any comments on the material or questions please do not hesitate to contact me directly 817-729-4281 or john@dfwfamilyrealty.com.

Check out some of my previous blogs:

New Home Builders in DFW Information to help you get the best deal working with a new home builder

Cinemark Alliance Town Center Details about this great new theater

Home Buying “A Short Course” Basic information on the process of buying a home

 

New Home Builders in DFW, Part 9

Models and home site demonstration  

New Home Builders in DFW, Tip #9
Do you trust what you see or do you see what you want.  Look at the details when looking at new homes do not skim over it because you think it looks pretty.  Most new home builders in DFW build good homes, but you need to look closely at the details before you buy.

Picking a home in 15 minutes or less

When I worked for new home builders in DFW I was amazed that some people would come in breeze through a model in 15 minutes and say yep, this is where I want to live and this is what I want.  I was always a little shocked.  Buying a home for most people is the largest single financial investment they will ever make.  I am analytical, sometimes overly so, and buying a home without studying the details seems like a recipe for disaster.  This is where new home builders in DFW will help you out.  Every builder wants their on-site staff to demonstrate the model or inventory home and this gives you a great chance to study the home and ask questions.  I am specifically talking about what comes standard in this home.  A model or inventory home may include $1,000’s of upgrades that you may not be planning on paying for above the sales price. Asking the sales person to walk you through and explain what comes standard can save you a lot of frustration.  If you find yourself to be less trusting of sales people, ask the sales person to give you a standard features sheet, then to show you what comes standard, you won’t offend them.  The point in this is you need to take the time to see what you get when you buy.

Looking for what’s wrong with this picture…

When you are walking the model or inventory home and you see something that does not look right point it out!  Every new home builder in DFW should have a very specific and easy to understand process for addressing any concerns that you might have during construction or after closing. Importantly every person who interacts with a customer should know the process forwards and backwards.  If they don’t know the process or can’t explain it simply, beware!

There is a lot to a lot

New Home Builders in DFW have a lot of lots to choose from and you need to make time to look at where your home will be built and how it will sit before you buy.  Spend time walking the land have the sales person explain how the home will be placed, where the fence will go, how big the back yard will be, look at the driveway and particularly the slope.  Come out to the land at different times of day and see where the sun rises and sets, what you can hear when you stand there.  Also, be aware of how water drains around the home, this makes a huge difference in how usable yard space may be.  Importantly find out what will be built around your home.  A shopping center right behind your new home may hurt resale so you need to know and ask an expert like a REALTOR if you think you may sell the home some day!

I hope you have enjoyed new home builders in DFW and found the information informative. In the next post I will be talking more about the process of negotiating. If you have any comments on the material or questions please do not hesitate to contact me directly 817-729-4281 or john@dfwfamilyrealty.com.

Check out some of my previous blogs:

New Home Builders in DFW Information to help you get the best deal working with a new home builder

Cinemark Alliance Town Center Details about this great new theater

Home Buying “A Short Course” Basic information on the process of buying a home

 

New Home Builders in DFW, Part 7

New Home Builders in DFW, Tip #7 Knowing the process that new home builders in DFW take you through when you visit the sales office makes the process easier and more understandable to you.

 

New home builder’s in DFW use the critical path selling method almost exclusively. The sections of this process are greeting, building rapport, qualifying, demonstrating, siting, handling objections, and closing. While almost every new home builder in DFW has their own tweaks to the process it remains largely intact. Since there is a good bit to this process we will cover it over several articles. When you visit New home builders in DFW see if you can recognize the pattern.

The first two sections of the critical path; greeting and building rapport are just as important to you as the buyer as they are to new home builders in DFW. The sales person should be out to greet you within one minute of walking into a model home. They should welcome you to the community, provide you their name and ask you for yours. While this is obviously important for the builder this is critical to you as a buyer as well. Remember that first impressions count! If the sales representative is too busy to greet you, will he or she be too busy to answer your questions later? While there may be times where they cannot greet you in a timely fashion, the sales person has an obligation to welcome you warmly and fully.

 

Building rapport is the second step in the critical path for sales and it should be quick and timely. This is a brief opportunity for the sales person and you to make polite small talk before you begin the process of explaining what you are looking for in a home. The key is that it should be quick and timely. This process should not drag on for ten minutes. At this stage the sales person is hoping that they can learn a little bit about you and put you at ease that they are not out to force you to buy a home right now. At this stage you are deciding, “Do I like and trust this sales person, Do they relate to me, Are they listening to me, or Are they thinking about what to say next?” I hope you have enjoyed new home builders in DFW and found the information informative. In the next post I will be talking more about the process when you enter the sales office. If you have any comments on the material or questions please do not hesitate to contact me directly 817-729-4281 begin_of_the_skype_highlighting              817-729-4281     end_of_the_skype_highlighting or john@dfwfamilyrealty.com.

Check out some of my previous blogs:

New Home Builders in DFW Information to help you get the best deal working with a new home builder

Cinemark Alliance Town Center Details about this great new theater

Home Buying “A Short Course” Basic information on the process of buying a home

New Home Builders in DFW, Part 4

New Home Builders in DFW Tip #3
Price is more than what you pay today when it comes to your new home.  Have you ever purchased something at a really great price only to have it break quickly, and then you spend money to fix it? Looking back it might have been worth the extra money to get a better value.  New Home Builders in DFW are not the lowest price option, but they may be a great value due to savings associated with increased energy efficiency.

New Home Builders in DFW did not include many of today’s standard energy efficient items even 5 years ago. Now, the questions today’s home buyers must ask are: How does this affect me? Am I getting what I pay for? Are all the energy efficiency programs really all they are cracked up to be? To make it even more challenging, many new home builders in DFW seem to have their own energy program.  The best place for a homebuyer to start is the Federal governments, Energy Star Program.  This program uses a testing method that scores each home against a benchmark standard.  Here is a link to the Energy Star Program: Energy Star Home Guidelines Builders homes are graded and given a score called a HERS score, the lower the number the better.

Today home buyers need and want to save money. Paying less for electricity, water, and gas for your new home is an important start. Not all energy efficiency upgrades are worth the cost though.  Remember the builder is including the costs of items in the home not giving them away.  If the builder you are looking at has made granite an option you pay $5,000- $7,000 for, but at the same time, that same builder is including spray foam insulation as standard; will the costs of paying extra for granite be worth getting spray foam insulation included in the price?  Another way to think about it is this way, if new home builders in DFW were absolutely sure that the cost for an option would be fully recuperated and every customer would want it, they would all likely include it as a standard feature.

In the final analysis while costs are certainly higher on the purchase, new homes are designed to save you on utility costs. If you couple the energy savings, with the savings in maintenance costs on a new home with new parts, and a warranty you may find that the value makes a new home a great deal. I hope you have enjoyed new home builders in DFW and found the information informative. If you have any comments on the material or questions please do not hesitate to contact me directly 817-729-4281 or john@dfwfamilyrealty.com.

www.dfwfamilyrealty.info

www.dfwfamilyrealty.com

New Home Builders in DFW, Part 6

New Home Builders in DFW, Tip #6
It is okay to go ahead and tell the truth! When you visit new home builders in DFW, being evasive about your real time frame or preferences does not help you at all.

I was working with a client of mine and we walked into a new home builders in DFW office, my client suddenly became like a stone. The salesperson was asking them questions to find out what they wanted and needed and how soon and my client would only give one word answers to every question he was asked.  When we left I asked my client, why were you uncomfortable and why did you not want to speak with the new home builder sales person.  My clients answer surprised me! The client did not want the sales person to “sell” them.  Wow, I was caught off guard to say the least.  I had spent days with my client and knew so much about him, but when it came to a sales person asking how quickly he wanted to move his only answer was some time soon.

I realized that people can make a presumption about a person or a situation and that presumption will guide reactions to an incredible extent.  I worked as a sales person for new home builders in DFW for many years before I became a REALTOR. The number one complaint of new home builders in DFW is that the sales people don’t sell more aggressively.  It was funny that each side has its perception and that it is completely opposite from the other side.  When I worked as a new home sales person I wanted to help customers quickly figure out if I had what they were looking for so that they would not waste their time if I could not help.  Does that mean when you walk into new home builders in DFW that they won’t ever try to sell you a home? No, of course not.  But it does mean that it is very easy to gain a tremendous amount of information without a lot of hassle.

Think about it this way, buying your home is about narrowing the choices as quickly as possible to get to the best homes for you.  When you walk into new home builders in DFW and don’t go right at what you want and how soon you need it you are slowing yourself down from finding your new home. Prepare a list of your needs and wants before you visit, then you can quickly go through your requirements with the sales person and see if they can meet your needs and time frame.

I hope you have enjoyed new home builders in DFW and found the information informative. In the next post I will be talking more about the process when you enter the sales office. If you have any comments on the material or questions please do not hesitate to contact me directly 817-729-4281 or john@dfwfamilyrealty.com.

Check out some of my previous blogs:

New Home Builders in DFW Information to help you get the best deal working with a new home builder

Cinemark Alliance Town Center Details about this great new theater

Home Buying “A Short Course” Basic information on the process of buying a home

Sell your Home in the DFW Area

Looking to sell your home in the DFW  Area

The Wall Street Journal  announced that the housing recovery is officially underway! So what does this mean to you if you are looking to sell your home in the DFW Area?

If you are looking to sell your home in DFW, the recovery means that prices are beginning to rise broadly across the market.  With rising prices your home is likely worth more than it was just a few months ago.  Housing numbers in DFW also show a considerably lower number of foreclosed homes available in DFW. Buyers are incredibly active and homes that are priced correctly are selling quickly sometimes with multiple offers that are netting sellers above and beyond asking price.  This is the recipe for the sellers housing market!

If you are looking to sell your home in the DFW Area the first step to take is to find an aggressive and talented REALTOR.  In all real estate markets marketing your home is key, but now a great marketing plan will help you net top dollar.  This is the job your REALTOR does, so they better do it well.  Make sure that there is a clear plan for marketing and that you will be in the loop every step of the way.  Your REALTOR should ask you questions about what your plans are when you sell your home in DFW and how fast do you need to and want to move.  Be prepared to discuss the condition of your home and the price you want and the price you realistically need.  Condition will affect the offer price and speed at which you receive offers on your home. It is a good idea to make repairs before listing your home as repairing now can be considerably less than the reduction in offer price may be.  Remember your REALTOR does not determine the price you sell your home for you do.  The REALTORS job is to show you where the market suggests price should be so that you can make an informed decision about listing your home.

Once you find the REALTOR you want to sell your home in the DFW Area, follow up with them and make sure they implement the marketing plan that you have discussed, and most importantly that they follow up both with you and perspective buyers and their agents.  Deciding to sell your home in the DFW Area is a great idea right now and offers you the chance to make more money selling than you have had in Years!

I hope you have enjoyed looking to sell your home in the DFW Area and found the information informative.  If you have any comments on the material or questions please do not hesitate to contact me directly 817-729-4281 or john@dfwfamilyrealty.com.

www.dfwfamilyrealty.info

www.dfwfamilyrealty.com

Check out some of my other blogs

New Home Builders in DFW Information to help you get the best deal working with a new home builder

Cinemark Alliance Town Center Details about this great new theater

Home Buying “A Short Course” Basic information on the process of buying a home

 

Free Summer Fun in Northeast Tarrant County

Free Fun this summer in Northeast Tarrant County

Keller scavenger hunt!

Free fun this summer in Northeast Tarrant County starts in Keller.  Keller Parks and Recreation is hosting a photographic scavenger hunt during the entire month of July. Everyone who participates will win a prize. Participants will need to take pictures of places and fun activities in and around Keller of the 31 challenges.  Once you have your photos you can upload the pictures on the Keller Parks and Recreation Facebook page www.facebook.com/#!/Kellerparksandrec  upload your photos to their wall and then tag the photos with your last name and the challenge photo number. (Example: Smith25) or pick up a scrap book from Keller Town Hall to get started!

“Scrapbooks” and Facebook entrys must be submitted by 5 p.m. to Keller Parks and Recreation Administration, 1100 Bear Creek Parkway, by August 3, 2012 to be eligible for prizes.

Level 1:

All scrapbooks   received: certificate of participation

Level 2:

10-19 photo challenges submitted: “Parks Make Life   Better” Acrylic cup

Level 3:

20-30 photo challenges submitted: Picnic Basket with   Restaurant Gift Certificates and “Parks Make Life Better” Acrylic   Cup. (limit 1 basket per family)

Level 4:

Complete all 31 challenges submitted: “Parks Make Life   Better” Acrylic Cup, Picnic Basket with Restaurant Gift Certificates and   Keller Pointe Day Pass 4-pack. PLUS, ENTERED IN GRAND PRIZE DRAWING for   a $100 gift certificate to Bear Creek Running Co.

There will also be a Best Photo contest for even more goodies! We will award prizes for 1st, 2nd, and 3rd place photos so get creative! The sky is the limit!

For more Details Visit http://www.cityofkeller.com/index.aspx?page=1432

I hope you have enjoyed Free fun this Summer in Northeast Tarrant County and found the information informative. Check back regularly for additional Free fun this summer in Northeast Tarrant County. If you have any comments on the material or questions please do not hesitate to contact me directly 817-729-4281 or john@dfwfamilyrealty.com.

Check out some of my other Blogs:

New Home Builders in DFW Information to help you get the best deal working with a new home builder

Cinemark Alliance Town Center Details about this great new theater

Home Buying “A Short Course” Basic information on the process of buying a home

New Home Builders in DFW

New Home Builders DFW Tip #2
What are the three most important things in a home, location, location, location… this is the oldest story in real estate, and it is completely true. New home builders in DFW are acutely aware that location directly effects price and so should you!  Location not only effects value, but also the livability of your new home. I have worked with buyers on both sides of the table as the builder rep and as their REALTOR if the location is not right for you, pass!

Location should always be top of mind when you are looking at new home builders in DFW or re-sales. Specifically consider where are the grocery stores, gas stations, banks, jobs, schools/daycare, entertainment, family, and your job. Keep in mind that mileage is not always a good predictor of how close or far away someplace really is. For instance a doctor may only be 3 miles away, but add bumper to bumper traffic and it could take 30 minutes to reach the office depending on the time of day. Another reason to consider location is noise.  A quick search of maps can help you find out whether the home builder is building close to train tracks or close to an airport.  Google Maps is the method that I use as a quick way to look this information up before ever visiting the community. Also, do not consider just what is in or around the location you are considering today, think about the future. If there is vacant land near a neighborhood that you are interested in ask your agent to find out how that property is zoned. Your agent may be able to share if he or she has heard anything about construction projects in the area. There is a tremendous amount of information that I find on projects every day with just a little bit of research.

I hope you have enjoyed new home builders DFW and found the information informative. In the next post I will be talking specifically about the researching new home builders in DFW. If you have any comments on the material or questions please do not hesitate to contact me directly 817-729-4281 or john@dfwfamilyrealty.com.

www.dfwfamilyrealty.info

www.dfwfamilyrealty.com

 

Cinemark Theater Alliance Town Center

See bottom of the blog for a link to movie showtimes at Cinemark Theater Alliance Town Center!

The new Cinemark Theater Alliance Town Center is making it fun to go to the movies again!  I just visited the Cinemark Theater Alliance Town Center this week, this theater is both beautiful and well designed.  This Cinemark Theater features some great innovations for the avid movie goer.  While the self- serve ticket kiosks are still outside, the actual ticket window has been completely moved inside the building. The lobby area is very large and airy with plenty of room for waiting in line. Considering that it was over 100 degrees on the day I visited, standing in an air conditioned line with kids while waiting to purchase tickets is really appreciated.  The Concession area is another part of the theater that is unique.  Right away you will notice that the goal is to be more upscale, right away you find yourself walking towards the coffee and ice-cream bar.  The popcorn, candy and drinks section of the concessions area are shaped like 2 mirror image L’s. The concession area features a semi self-serve design.  This self –serve design actually speeds things up considerably with many of the items, particularly useful when all you want is a drink with a little ice.

Inside the auditoriums, the walkways are spacious and the lighting before and after the movie is well thought out. You can easily see where you are walking without tripping.  The theater does not have to be made so bright that you cannot see the credits after your film.  The stadium seats are large hi-backed wide comfortable vinyl seats that rock.  The leg room in between rows is generous, we saw people that were at least six foot four inches tall sitting comfortably with room to spare.  One of the items though that I most appreciated was the quality of the sound.  Often at the movies, the sound can be so loud that in action movies it can be really uncomfortable to sit through.  At the Cinemark the sound was very clear and not exceptionally loud, making it easy to understand dialog, feel engaged in the action, and importantly keeping my ears from ringing.  The projectors were bright and the quality was exception as you would expect at a theater with new digital projectors well.  The screens are very large in fact and slightly concaved which seems to provide a slightly more immersive film experience.

One final word of note about the Cinemark Theater Alliance Town Center, the theater is offering many special one night only shows that are worth looking into.  I saw previews for old movies, concerts, Ballet performances and so on.  The ideas of seeing masterpiece films like The Wizard of Oz and Casablanca or great performances on the big screen gives Cinemark Theater Alliance Town Center an  entirely new and exciting dimension for film and culture buffs alike

please check out my other other blog on New Home Builders in DFW .   I hope you have enjoyed this information Cinemark Theather Alliance Town Center and find it informative.  If you have any comments on the material or questions please do not hesitate to contact me directly 817-729-4281 or john@dfwfamilyrealty.com.

Find me on the Web

www.dfwfamilyrealty.info

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Cinemark Theater Alliance Town Center Movie Showtimes

http://www.cinemark.com/theatre-detail.aspx?node_id=64923

New Home Builders in DFW

New Home builders in DFW Tip #1
Get help! New home builders in DFW spend a great deal of time researching before they select an area to build new homes. They commission financial viability studies, look at absorption rates, carefully weigh product offerings to maximize ROI (Return on Investment) to investors, and complete in depth demographic studies to ensure the desirability of the homes they build to you! Having the REALTOR who knows how to help you select and work with a builder will make the process easier and more rewarding for you.

New home builders have a margin of profit on every home that they build. The amount of that margin varies widely by builder, plan, community and even time of year. While those of you with an accounting background may be very excited about an in-depth discussion of margins, we will for the sake of simplicity break margins into two categories: gross and net. Gross margins include the builders fixed costs for a home, these items are easily estimated before construction begins and then there is the net margin which is what the builder actually makes when the contract is negotiated, written and closed. Builders typically will not directly share these numbers with you when you are buying a home but they will be the basis for all negotiations between you and the builder. When you are going to build from the ground up the builder must use their gross margins and then assume where the “net” margin will be, this may make them more conservative in the negotiation process. If you are building from the ground up you may want to look at the base “standard” home itself in the same way you think of a “loss leader” at a grocery store. The margin that the builder will make is often dependent on upgrades that you will choose for the home including, exterior elevations, structural options and modifications, and designer options i.e. lights, carpet, cabinets, granite etc. This is why when you are building, incentives are usually offered on one of those areas and not base price. Negotiating on a completed home has fewer variables but still there are a number of variables to consider. Completed homes cost more money, just because it’s built does not mean it is no longer costing the builder money. Most builders finance construction with loans and they pay costs to “carry” these homes on the books which can significantly erode margins and negotiating room. But more basic and often as expensive are maintenance and operational costs such as mowing, cleaning, electrical, water and gas. Understanding how margins affect pricing will help you negotiate from a position of knowledge and power to separate the good deal from the bad one.  In the next installment I will talk about the pricing differences between new builder pricing in DFW and resale pricing.

I hope you have enjoyed new home builders in DFW and found the information informative.  If you have any comments on the material or questions please do not hesitate to contact me directly 817-729-4281 or john@dfwfamilyrealty.com.

www.dfwfamilyrealty.info

www.dfwfamilyrealty.com