Buying a new home from a developer can be very different from buying a resale home from a homeowner. Consider these points in order to determine the best time to buy a new home in your area.

 

First, consider motives. While a homeowner is oftentimes very emotionally attached to the home that you are considering, a builder is interested in selling as many homes as quickly as possible. For this reason, you may find that builders are able to give much larger incentive packages when shopping for a home.   They can include, thousands of dollars to help with your closing costs, free upgraded interior finishes in the home, assistance with down payment for financing, and much much more. Using a seasoned agent is the best way to make sure you take full advantage of those incentive packages since they are in touch with the developers regularly, and the developers view them as a valuable asset towards getting more sales.

 

Be sure to take a look at inventory. Oftentimes, if another homeowner backs out on a home before the purchase (this happens often), you can take full advantage by purchasing a home which is fully or partially completed. A builder has a powerful financial incentive not to let a finished home sit unsold (property taxes, utilities, opportunity cost) since nobody is living in the home, unlike with a residential resale.  

 

In cooler regions many new construction closings take place during the winter and spring months (they rush to pour the foundations before the ground freezes, and it takes about 4 months to finish the home). For this reason, if you are ready to move and the builder knows about it, you might find yourself with a great offer during that time.  

 

Regardless of when you decide to purchase, it is prudent to put yourself in the best position possible by using an agent when purchasing a home.   When working with a buyers agent, the salesperson will know that you are serious about a potential purchase and be sure to present you with the best offer they have.  

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