I was showing new construction properties the other day and something unique happened when we were leaving the sales office. We were pulled over by a homeowner who is trying to sell his own home in the development. Actually, it's listed with a broker but the homeowner is desperate and is taking it upon himself to "help."
I thought it was a pretty agressive tactic on his part to park on the street watching the sales office and stopping everyone who left. Talk about a captive audience and a warm lead.
The builder has been in this community for over a year and will be there for at least another three. If you're in the phase I section trying to sell your home (like the stalker) it's pretty difficult to compete with the builder and the incentives they're giving out in this market. Market conditions being what they are, the builders prices for phase II homes are considerably lower than phase I...ouch. More than 50K lower. They're also offering 4% towards closing costs and incentives galore. Besides that, builder list prices are no more than suggestions nowadays compared to just a few short years ago.
This particular homeowner feels that the builder threw them under the bus when they reduced the prices in phase II so he doesn't feel any qualms about grabbing people coming out of the sales office.
This isn't the only development where builders have reduced prices in Maryland. The land is bought, the engineering is done, permits have been granted...time to cut profits and get some sales. Clients from earlier sections, well, they're on their own.
In the past you could pretty much count on getting into a new development early and just sit back and watch the prices rise. Now it's not a plus because builders just keep dropping prices and increasing incentives to move houses.
Competing with other resales is one thing, competing with a builder to sell your home in a new development is something entirely different. Agressively stalking the sales office may not be a bad tactic.
Richard Iarossi is a full time licensed REALTOR®, working in Crofton, MD. My coverage areas are: Anne Arundel, Prince George’s, Howard, Calvert, Queen Anne, and Baltimore City and County. I specialize in residential real estate, working with both buyers and sellers. Use the registration free search on my website at www.RichSellsHomes.com. If you’re not already working with a REALTOR®...I can help. Call me at 443-995-9595 (Cell) or 410-451-6255 (Office).
SKYPE ME: RichSellsHomes