Let’s talk about BUILDER CLOSEOUT. You may have seen these signs around town: “BUILDER CLOSEOUT” or “FINAL OPPORTUNTIES.”
What does it mean exactly?
Builder Closeout means that the project is complete, the builder is finished with that particular development or community and they are ready to move on and build in another area. But, they still have some houses or inventory remaining that they need to sell in the old development!
Smells/sounds like there might be some good bargains here!
Exactly! These homes that are for sale in a builder closeout are reduced in price! In some cases, they’re drastically reduced in price! I’ve seen some reduced by $20 thousand, $50 thousand or more!
Sounds great and buyers love a good deal! But wait, what KIND of houses can buyers get in a builder closeout? Are we talking about the houses that nobody wanted to buy, and that’s why they’re still left over?
In a builder closeout, the houses that are for sale usually include the model homes. We all love model homes, right? All those amazing upgrades PLUS all the furniture and accessories are also usually included!
Some other homes that might be available in a builder closeout are the ones that were in contract with another buyer but for whatever reason, the buyer had to cancel that contract so the house is back for sale.
That’s unfortunate for that previous buyer, BUT your buyer can get again, not just a house at a reduced price, but that house might already also have upgrades that the previous buyer has already paid for!
Now, before you go rushing into these new houses and model homes, please make sure you bring your real estate agent with you on that first visit.
Some of you may ask, “Why do I need a real estate agent to buy a new construction house? The builder already has agents in the sales office who can help me!”
Good question. The short answer is because that agent represents the builder. You need an agent to represent YOU, the buyer, someone who looks out for your best interests! You wouldn’t walk into a court room without your own legal representation, would you?
Another question that often follows that first questions is, “Won’t the builder give me a discount if I don’t have my own agent?”
This is another common misconception. And again, the short answer is NO. The builder has already factored in the agents’ commission into the price of the home. If you don’t have an agent to represent you, they just use that money to market their next house!
So, what can a real estate agent do for you when you buy a new construction home?
Again, your real estate agent represents YOU, and will help you review the builder’s contract and negotiate terms and conditions. That contract can be 50 pages or more! And trust me, it is always written to benefit the builder, not the buyer!
Your real estate agent can also go to bat for you if there are any hiccups and delays – believe me, there will be!
If you would like to know where the BUILDER CLOSEOUTS are in Reno/Sparks, call me at 775-287-8056. I’ve worked with the biggest and best builders in the area, including Toll Brothers, DR Horton, Lennar and many others!