Why is Move In ready home price much higher than plan available to build?
7,216Hi all,I am searching to buy a house. However when I visit builder website, the price for move in ready home is much higher than the same plan that available to build?In addition, how is plan available to build work?
10 answer(s)
About 10 years ago
Move-in ready homes ( Spec homes) typically have upgrades which will raise the price. there is also typically a lot premium that you have to pay for, so when you see the price range advertised buy the builder it would be a basic home with no upgrades, san the lot premium which varies depending on lot size and location.
Like (1)
DislikeAbout 10 years ago
These are all great answers to reasons why builders charge more for inventory homes than for new builds. What you need is an agent with strong negotiation skills to help you get the best price possible. I have experience in negotiations with many of the builders in this area. I would love to help you. Call me at 832-285-2865 so I can help you get started right away.
About 10 years ago
There are three main factors that few answers alluded to:
1. Time value of money, simply stated, all other things being equal you would pay more for a house today than for a house 3 months from now, because you can get access and use to that house today.
2. Supply and demand, if there is high demand for houses at the moment, you are going to see the prices of those readily available houses rise if supply is limited.
3. Upgrades and options. Base price on a floor plan doesn't include any extras (nicer exterior stone work, granite, tile/wood floors, high-end fixtures, etc) just that basic house with regular materials
1. Time value of money, simply stated, all other things being equal you would pay more for a house today than for a house 3 months from now, because you can get access and use to that house today.
2. Supply and demand, if there is high demand for houses at the moment, you are going to see the prices of those readily available houses rise if supply is limited.
3. Upgrades and options. Base price on a floor plan doesn't include any extras (nicer exterior stone work, granite, tile/wood floors, high-end fixtures, etc) just that basic house with regular materials
About 10 years ago
Simple. Supply and Demand. If you need a house today and can't wait 6 months for one to be built then there is a chance you would be willing to pay more for the house, right? That's what has been happening here as well as across the country, the demand is high for houses that are ready to go so the builders can charge more to fill that need. When demand is low the same house would be cheaper than building. It's been so long since the demand has been so high it's hard to remember this principle.
Work with a Realtor that knows the area you are considering well, there are still some deals out there and your Realtor may be more aware of them than an web search can show.
Work with a Realtor that knows the area you are considering well, there are still some deals out there and your Realtor may be more aware of them than an web search can show.
About 10 years ago
Builder needs the ready home to use to show buyers what it looks like finished.... Builders rarely have multiple models these days. And or this could be a premium lot. And or it had more in it ( upgraded) than you know about.
About 10 years ago
Great answers!! Definitely use a REALTOR to represent your best interests since the sales people are that - sales people for the builder.
Veronica explained how it works VERY well! Base price and what you end up with at the design center considering builder incentives and upgrades could be two completely different numbers!
Veronica explained how it works VERY well! Base price and what you end up with at the design center considering builder incentives and upgrades could be two completely different numbers!
About 10 years ago
The builder's floor plans reflect the "base price" of the home without any change orders, typically called "upgrades". Once you select a plan to build, you would then schedule a design center appointment to go over all the "options" you can select to be included in your new home. The cost of your personal selections at the design center will be added to the base price. The homes that are completed but have not yet sold are offered at the total cost: base price design selections.
About 10 years ago
It's most likely a starting price. Then they start adding upgrades or lot premiums and the price goes up. Also, you should use a Realtor to help you with the purchase of a new home. The nice sales people work for the builder, you want someone to work for you. Hope this helps.
About 10 years ago
As improvements are made to the land the price increases. Value increases with the loct location, then again with the house, then again with the updrades.
About 10 years ago
Hello,
It depends on the circumstance. Perhaps the price you see listed has no upgrades or is not on a premium lot or the price you see is to build on your own lot. I hope this helps!
It depends on the circumstance. Perhaps the price you see listed has no upgrades or is not on a premium lot or the price you see is to build on your own lot. I hope this helps!
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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