Crosby Finance

It is the summer of 2007 and there are many brand new homes on the market. Herein lies a potential problem for you if you are looking for a brand new home in a new subdivision. If you have been paying attention to the marketplace, you might know that some builders are offering fantastic incentives to attract buyers. At this time in many areas, buyers are staying away in droves.

Imagine this scenario for a moment. You are driving around on a pleasant Sunday afternoon and you see a subdivision with all new houses and a new golf course. You love the model house you tour and you decide to buy. It is your lucky day because the builder happens to have that exact model as part of their unsold inventory.

The price you and the builder have settled on is for $200K. You move in, play a few rounds of golf, and all is well. Three weeks after you move in, you are driving home and you notice a new sign in front of that builders model. You are stunned because the new sign is for $175K. What happened to your $25,000.00?

Can it happen? You bet it can happen and in a market like we are currently in, I expect it will happen. You as a buyer need to be vigilant and do as much homework as you possibly can. Do you want to be one of the first buyers in a new subdivision or at the end of the build out?

In the housing business, it is the values of houses similar to yours, in close proximity to yours, that determine the value of your house. I hope you don’t have to move in a year and the builder has sold three more houses on the street, all for $175,000.00.