BUYING A NEW HOME IN SARASOTA:  HOW TO GET THE MAX FOR THE MINIMUM

The realm of new construction in the Sarasota area is in a constant state of evolution. While embarking on the journey of new construction homes certainly has its share of advantages and drawbacks, there are strategies that can help you maximize the benefits while minimizing your investment in both time and money. I'm excited to delve into three key ways you can make the most of new construction, offering you invaluable insights into how to achieve the best results within your budget and timeline. Whether you're a prospective homeowner or an investor, these strategies can make your foray into new construction a more rewarding and efficient experience.

Save Time and Money

INVENTORY HOMES - SAVE TIME

Inventory homes, sometimes referred to as spec homes or feature homes, offer a unique opportunity in the world of new construction. These homes have already been initiated, often with the necessary permits secured. However, the timeline for when builders decide to market these inventory homes can vary. What sets them apart is that the builder's designer has carefully curated all the finishes and upgrades - from cabinets and colors to floors, countertops, faucets, and tile - with a keen eye on creating a home that appeals to a broad audience.

You might be wondering, "What about making my own choices?" While the allure of personalization is strong in new construction, inventory homes come with a significant advantage: time savings. Some of these homes can be move-in ready in less than six months, and in recent times, we've seen instances where they're available in just a couple of months. If your schedule is tight and time is of the essence, an inventory home might be the perfect fit for you. Additionally, for those who find the idea of making countless design choices overwhelming, the prospect of a move-in-ready inventory home can be a welcome relief, sparing you the need to sit down with a designer and make every selection from scratch. Ultimately, the choice between new construction and inventory homes hinges on your preferences and priorities, and both options offer their unique advantages.

INVENTORY HOMES - SAVE MONEY

 Another compelling benefit of choosing an inventory home is the potential for cost savings. Typically, the upgrades and features bundled with an inventory home come at a discounted rate. If you were to opt for the same lot, floor plan, and features independently, the total cost would often surpass that of an inventory home. Moreover, as the completion date of an inventory home draws nearer, builders are inclined to reduce the price. After all, they prefer not to have completed homes sitting on the market.

I want to highlight that I regularly receive updates from builders regarding inventory and price reductions. Just last week, a sales agent reached out to me with a fantastic opportunity when a buyer withdrew their interest at the last minute. This incident underscores that there are exceptional deals waiting to be seized if you can exercise patience and keep an eye out for the right home. In the world of real estate, staying informed and being prepared to act at the opportune moment can lead to substantial savings without compromising on quality or features.

USE THE BUILDERS LENDER AND TITLE COMPANY

Utilizing the builder's preferred lender and title company can be a savvy move when purchasing a new construction home. Builders often have established affiliations with these financial and closing entities and, in many cases, they actively encourage you to use them. Why, you may wonder? Well, in return for your choice, builders frequently offer attractive incentives in the form of funds earmarked for covering your closing costs.

Before the COVID era, securing $10,000 or even $7,000 towards closing costs was akin to hitting the jackpot. However, the landscape has shifted, and during the pandemic, buyers were fortunate to receive $3,000 in incentives. Today, $10,000 is not an uncommon figure at all. It's important to bear in mind that each builder's offerings can vary and these numbers may fluctuate from week to week. So, always be proactive in inquiring about the available incentives and their expiration dates.

In light of the recent rise in interest rates, some lenders are also introducing different financing programs to assist buyers. However, it's essential to recognize that while you have the option to seek financing outside of the builder's recommended institutions, doing so may result in forfeiting these valuable incentives.

One crucial point to keep in mind is that new construction often entails additional closing costs compared to purchasing a resale home. Therefore, these builder incentives usually translate to an advantageous position where you'll do slightly better than breaking even, helping you manage the financial aspects of your new home purchase more effectively.