It’s a common question and an even more common problem in today’s real estate market. Competing with the builder to sell your home. Knowing the builder’s position and promotions will give you a lot of information on how you should approach the sell of your home.
First things first, let’s do the short answer:
Do Builder Incentives Affect Value? SHORT ANSWER:
They do not affect Value directly, instead they tend to drive the price negotiated down on resales only in the neighborhood and do not typically affect surrounding neighborhoods.
Having a professional Realtor is the key to success and there is one thing to remember. Above all else, price is king.
Some keys to success when competing with a builder are:
- Know the Market – Like any professional Realtor should know, you need to know what you are competing with. Will the "Biltmore" take 8 months to build, and you have one that is move in ready? Does your lot allow for the only 3 car garage?
- Know the promotions – You can do two things, you can attempt to match the promotion or show value elsewhere.
- Accentuate the Differences – Make sure that buyers know why they’d want your home over the builder’s. Maybe you’ve finished some additional bedrooms, added a pool, or perhaps you "worked out the kinks."
- Work the Community – Most sales from new neighborhoods in more rural areas are referrals from the neighborhood. Take advantage of it.
- Remind the Buyers – THEY CAN MOVE IN TO YOURS QUICKER. They can get an inspection and have a real person to deal with. Most builders have rigid contracts and are not really interested in lots of negotiations. They’re simply less agile than a home owner is.
Be sure to hire a professional Realtor to help you with this trying process. It doesn’t have to be an agent that lives in or near the neighborhood, in fact, hiring an outsider could be a good play, since their "sphere" might be people who would want to relocate to your neigborhood.
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