Top 10 Tips for

Good Deals on

New Construction

If you want to live in a

newly built home, be

forward about pressing

your advantages.

Just a year or two ago,

home builders were

holding fast and firm on

asking prices.

Now it's a buyer's

market.

Here are ways to get a good deal:

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Look for spec homes. These

generally are already built, never lived

in, and are simply awaiting buyers.

Many builders erected them before

the economy turned sour with

expectations that they would pull in a

higher price. Now that price is

unrealistic, and builders are

negotiating.

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If your builder knows you're being

proactive, chances are he'll give

you a better deal.

It might come as a lower interest

rate, a percentage of the selling

price returned to you at closing,

shaved points, or some other

benefit.

He might offer you an in-ground

pool if you stay with his financer.

But the extra interest could cost you

much more than that over the

years.

Look for deals even if you

are buying in a

neighborhood where you

wouldn't normally expect

them.

When a builder is willing to

negotiate, he often does so

quietly, so that the people

who already bought from

him in the area won't be

upset with him.

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If you're looking in a

development, choose one that's

close to completion.

The last houses to go are

generally sold at a lower rate.

Don't feel like you're getting in on

the tail end of a deal if you're the

last move-in.

You'll already know what the

neighborhood demographics are.

You won't have questions about

whether additional homes are

going to block your view.

Another tip for purchasing a home in a development

involves walking around and chatting with people who

already live there.

Ask if the builder lived up to his promises.

You will also get a feel for the builder's reliability and

his willingness to negotiate extra features or price

cuts.

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When you're looking for your

dream home, or even just

the land to build it on, hire an

exclusive buyer's agent

(EBA).

That means your agent

works independently of the

local brokers.

You will still sign a

contract with him, but

there's no chance he will

also be representing the

seller.

And specify in your

contract, whether you go

with a EBA or a local real

estate agent, that you

want access to all

listings, not just one

agency's.

You can also retain the

right to look on your own.

Check your builder's reputation with the local

homebuilders association or architectural board.

Also ask the local Better Business Bureau if the

builder has complaints against him.

Besides reviewing complaints from other buyers,

look for contractors with unpaid bills, which could

indicate that your builder is going through a period of

instability.

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Know what you want in a home

ahead of time.

Be specific when you sit down

with the builder. Vagueness will

cost you money later.

Don't let the builder push you

into costlier options beyond your

budgeted amount-you'll pay for

them in the end.

And feel free to carry

brochures from other builders

with you when you visit each

one-the hint of competition

lubricates the wheels of deals.

Hold the builder

financially accountable.

Make sure the builder

gets the subcontractors

to sign lien waivers.

If they don't, and the

builder doesn't pay

them, they can put a lien

on your home.

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Also, make certain he cannot draw

progress payments from the bank

unless both you and the bank

officer have approved them.