New Home builders in DFW is multipart series designed to educate you so you can decide if a new home is the right choice for you. I am a 14 year veteran of the homebuilding industry and have extensive knowledge and experience in sales, construction and management in the Dallas Fort Worth Metroplex. I left the new home construction industry in 2011 to become a REALTOR with Keller Williams.
New home builders often talk about the latest construction technology. Claims of extreme energy efficiency and better quality of life are made by nearly every builder out there today. Builders are offering great incentives to buyers and REALTORS alike to build now. But you may be asking yourself questions like, “is it all for real?” and “do I really want to build a home today?” The answer to both questions may very well be “YES” but, this can come at quite a cost if you are not careful and do not do some homework before you buy! In New Home Builder 101 I will give you an overview on the new home building industry and information on how to locate a great builder for you.
At the peak of the home buying craze in 2006 new homes accounted for roughly 8% of the total number of home transactions. As the market dipped and then slid down faster and faster that number declined and today is in the 5%-7% range depending on the study. When I share this information with people they often tell me that they thought that new homes would account for a much larger portion of total homes sold in the U.S. New home builder sales do not constitute a larger portion of total homes sold due to many factors, here though we will discuss three of the largest. The first factor in why the new homes account for a low percentage of total homes sold is, existing inventory levels. Just imagine all the existing or “resale” homes that will be bought or sold this year. Every price point imaginable will be represented in these homes and they are everywhere. It would be impossible to build enough homes to make a much more dramatic statistical impact. The second reason for a low percentage of total sales is that builders are not as geographically spread out as the existing supply or “resale” market. Builders need a steady stream of new buyers to buy, and to stay in business, so in lower population areas new homes are a very rare thing. The third reason is economic, not only do new home builders need buyers but they also need to build and sell at a profit to keep going, and in some areas of the country they cannot do this successfully. As we move through New Home Builders in DFW we will talk about the how the economics that builders face can significantly impact your ability to negotiate with a builder.
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 firstname.lastname@example.org.