Real Estate

Competing with the builder to sell your home?

I was at a listing appointment the other day. The couple had purchased a home a few years ago in a new neighborhood. The house was nice and had several upgrades to it, including wood laminate floors in the living room and a storm shelter in the garage. The builder had given them a microwave hood vent at time of purchase and they were willing to leave their refrigerator.
Unfortunately, the builder was still building in the neighborhood that they were living and they needed to sell because of a job transfer. Surely the upgrades would add value to their property that they were hoping to sell for more than they paid.
The truth of the matter is, as I explained to them, that they were going to have to compete with the builder to sell their home, since the builder was still building in the neighborhood. This builder currently is selling homes comparable to the one they purchased three years ago for about the same price that they paid three years ago. In addition, the builder typically pays closing costs and includes items like blinds, microwave hood vents or ceiling fans for their buyers.
In order to entice a buyer to buy a three year old home versus a new home that has not had animals or kids and comes with a one year builder’s warranty; this seller will need to discount their home even with some updates. Otherwise what would be the incentive for a buyer to purchase a resale home when they could purchase a new home at equal or lesser value?
As a word of advice, a little too late for this couple, if you are only going to live in a home 3-5 years, you need to research and know if the builder will still be building in your subdivision when you are planning on selling your home. Look at the resale market of the area and decide if it makes sense to purchase the new home in a subdivision that is still being developed.
For any and all real estate questions, please feel free to call me Sandi Walker 405-213-2992.

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