Posted by Mike Askins on Sunday, February 12th, 2017 at 12:43pm.
"Help the Builder, Make their Fiscal Year numbers, and they'll help you make yours." Many people don't realize, that with Real Estate, being in the right place at the right time, can save you money and help you pad your future home equity when the time comes to sell. Unlike pre-owned real estate, where a seller is really under no pressure to sell, home builders are businesses and they can't afford to be married to unsold inventory.
Home builders as a business must CLOSE unsold inventory, to pay their bills and maintain cash flow. Unsold inventory erodes profit margins, unlike unsold lots that cost builders nothing. SPEC homes cost builders monthly interim interest payments, utilities, landscape and cleaning costs plus insurance costs, which all work to erode profit margins with each passing month. Once the fiscal year-end begins to loom, issues with creditors or even shareholders, who provide builders with the line of credit they need to fund new home construction creates a more urgent pressure to divest of closable inventory and report more favorable earnings. This is when builders cut their best deals. A portfolio of unsold homes is a warning sign that could lead to higher borrowing costs in the new fiscal year.
Please note that MLS may not reflect the builder's bottom line price. ARG Owner & Realtor Mike Askins, can help you find and negotiate a fiscal year end deal below MLS pricing. Visit Drees Homes main page, for community & floorplan info. Questions? Call new home specialist Mike Askins 972.529.2394
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Mike Askins, Realtor, Owner ARG, 20 Years of Client Services
Got questions for Realtor Mike? Call me at 214-727-3686 (mobile)