How to save money when buying a new construction home. Top 10 ways to save money building a home.

The best ways to save money when buying a new construction home. Top 10 Ways to save money when building a home. Are you looking save money when building a home? This video is going to focus on things you can do to save money when building a new construction home, & if you watch to the end, I’ll share one way to save money that many aren’t telling you about. As a new home construction specialist, I’ve guided over 400 people through the build process. My goal is to help you get the best deal possible when building a home. Before we dig in, understand that builders are highly unlikely to reduce the base price of their homes. There are better ways to save money. The incentives you’ll most often receive from the builder are a credit toward closing costs or a credit at the design center.
#1 Use the builders preferred lender. Builders want you to use their trusted lender so they know your preapproval is good & so they can get updates throughout the build process to make sure, as the home nears completion, that you’ll be ready to close.
#2 Check the builder’s warranty. Most builders offer a 1-year warranty.
#3 Find a homebuilder that has standing inventory. Many builders start homes in hopes they can sell them before they’re completed. These are called spec homes. If the house makes it to completion without selling, the builder will often be more willing to negotiate.
#4 You can buy the builders model home. Yes, these homes are often over upgraded, but usually the builder will sell these homes at a discount. It’s one of the best ways to get a gorgeous fully loaded home.
#5 The base price of the home can be misleading. If you want to buy new, you may consider a home that is already under construction so you already know the final price. If you want to build from scratch, just do your research & maybe ask for structural & design center pricing before you commit. Once you’ve selected a builder & you’re moving forward, make sure you don’t over upgrade your home. For more details on options & upgrades check out this video, The Most Important Upgrades for New Construction Homes. Here’s the link... https://youtu.be/b_Z86Hm9xkA
#6 Timing, especially with the large national builders. Because they have to answer to share holders there’s a lot of pressure for these large companies to hit their goals. That means at the end of the quarter, or more so at the end of the year they can actually get desperate.
#7 Also has a lot to do with timing. For instance, when a builder first releases a community, that’s when home pricing will be the lowest. As they sell homes, the prices will increase.
#8 When you’re comparing one builder to another, don’t only look at the base price. Also look at the builders list of included features. This will give you the best apples to apples comparison. Also check lot sizes when comparing builders because one may have .16 acre lots while the other has quarter acre lots. I dig deeper on this subject in another video, The Most In-Depth Guide for Buying a New Construction Home Here’s the link… https://youtu.be/Lni9URMXn6E
#9 Order a home inspection. I go back & forth on this one, because most builders do a great job & many of these issues will be taken care of with the builder’s warranty. In most situations I’d say you can skip the home inspection, BUT as you’re going through the home build process, if you begin to have concerns with the builder, this would be a good situation to order one.
#10 I hesitate to say because some Realtors will be upset with me. But, some builders will give you a better deal without a Realtor. I have many friends that are Realtors & I have a sincere desire to protect them & allow them to earn a commission. But, if I’m being honest it does happen. Ask the builder before you hire an agent if they’ll give you a better deal. There's some risk in doing this because, if you stop by the model home without an agent, the builder may not allow you to use an agent. It’s important to understand that the builder probably won’t give you the full 3% discount for not having an agent.
Like I said, don’t ask the builder to reduce the base price of the home. You’ll have much better luck asking for a credit toward design center options. As a reminder, make sure any discount you’ve negotiated is part of the contract. There should be a special addendum or a line in the contract that says something like… Buyer to receive $5,000 toward upgrades at the design center or Buyer to receive all closing cost paid when using the preferred lender.
Ty Wilde is Utah's best real estate agent on YouTube with dozens of videos related to real estate. Ty is Utah's best Realtor on YouTube for New home construction videos. Ty has some of the Best Videos on buying a home, selling a home and Real Estate investing. Subscribe to Ty’s channel for the best real estate videos on YouTube.