How to “steal home” in Howard County and get away with it
December 3rd, 2007 Categories: New Homes in Maryland
Are you looking to buy a home in Howard County or the surrounding area and don’t mind doing it NOW?
Find a “spec” and you may just be “stealing home.”
“Spec homes” are homes built by builders before they are contracted for purchase. The builder “speculates” that there will be demand for the home and take risks by upgrading the home without the input of the future buyer. Often these homes are used for the neighborhood model and sales offices. The homes are usually significantly upgraded to highlight the builders craft. The builder carries the cost, including paying his contractors, before earning dime one.
The builders need these homes sold before the ball drops in Times Square.
Read on to hear a story about a client I am working with and our dealings with a local Howard County Builder*. My assumption is that there are deals like this across Maryland to be found.
I am currently working with a client who is shopping for homes in the Columbia area. We have looked at re-sale homes in Ellicott City, Columbia, and parts of Laurel. There are many homes available to choose from and the buyers have considered new construction as well.
During our home search we found a builder with a “spec” home in Columbia. When we spoke with the builder representative we learned quickly how motivated the builder was to sell his spec homes.
The builder states they are losing money just to get the home off their books for the year. (I am still sceptical about this) They aren’t negotiating as aggressively on their other lots that haven’t been built because they haven’t invested as much and they have all of 2008 to sell.
This should give you an idea of how willing the builder is to negotiate on the sale of this home:
- The builder has dropped the price over $150,000 from it’s original asking price. Yes, it was priced too high to begin with. Now it’s under priced.
- The builder is including a finished basement. Upon our feedback (and others) they changed the layout of the basement and added more finished living area. This included demolition of the original layout!
- They offered to change the kitchen cabinets, counters, and appliances to suit the new home buyer. Wow!
- They are offering $10,000 in closing costs assistance
- Most of the costs of upgrades in the home have been slashed or eliminated.
After a comparable market analysis I was able to show my client how much of a “steal” Value this property is. They are still deciding if the location is right for them but they do recognize how much the builder is willing to negotiate.
This is just one story about one builder. My guess is that other builders are just as motivated. If you are in the market for a deal, and don’t mind settling before the end of the year, this may be the route to take.
*Because in Maryland builders must be supervised by real estate brokers, and as a real estate agent I cannot advertise listings of another broker without a listing agreement, this story does not name the builder or the particular community. If you are interested in new construction in the area I work (Howard County, Anne Arundel County, Carroll County, Baltimore County) give me a call and we can discuss further. Scott Saghirian 443–799–7010.
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Spec Homes offer a great value here, also. For the client who wants a new or newer home, researching the builder inventory is a must.
Comment by Paula Henry — December 12, 2007 #