Are you looking to buy new construction homes soon? Here are some great tips for you. But before we dive into the tips, I will give you some updates on what you need to know about the New Construction Market. There's only one thing that I can tell you: It is CRAZY!
 
Let me tell you why:
1. The inventory is low! 
They don't have any inventory that is why we don't have enough houses right now. So what happens when you don't have enough houses on the market and you have a lack of inventory? Everyone wants to buy new construction houses. 
 
2. You need to wait for a significant period of time before you can buy a new construction home. 
Since the demand is high because the housing inventory will remain low for the rest of the year, the builders cannot build fast enough to accommodate the growing demand.
everybody wants to come here to DFW because we have jobs, and our home values are actually pretty good. 
 

Let's talk about some practical tips as well as some rules and things that you need to follow when it comes to buying new construction homes. 

 1. The inventory is going to remain low for the rest of this year. 
You need to make sure that you have this conversation with your agent so you are well-informed and ready. What does this mean for you? It means, that if you have a lease that's not up until November, you need to start now.  I built my new home earlier this year and it only got ready last August. Building a brand new home is going to take some time. If you are still in the lease you need to get started as early as now. Do not wait until you're three months up to your lease until you start to buy a house.
 
Then you start thinking to yourself that you can do this whole thing that's why you go out to the pre-owned market and get your soul crushed because every home on the pre-owned market has about 15 different offers at a time. This is the tough reality that every home buyer has to face in DFW's aggressive market. Then somebody comes from California, and they offer you another $20,000 over the asking price for the Escalation Clause. 
 
2. Be firm and decisive!
Practically speaking, the New Construction Market, is definitely the kind of market that you should be looking at right now. However, if you wait too long, you can let that pass you up to all right now. If you see a house that you love, and you want to buy it, and have second thoughts about it, what happens next?  The family that saw the house the night before who also said they're going to go back and think about it comes back and buys that same house that you want. This is a running joke in the Real Estate Industry. This is very true. 
 
With how things are doing in the DFW Real Estate Market, you are not in a position to wait and have second thoughts about buying a home that you love. I cannot tell you how many times this year alone where I've had clients who chose to wait and then come back, only for them to be completely out of the house that they want and only to be out of the lots period. So now, we need to wait for the builders to release more lots.
Then what happens? You'll be on the long waiting list for new lots and we don't want that. 
 
3. Consider the cost of waiting. 
I'm telling you, the cost of waiting right now is so ridiculous. There are certain builders that are going up every fourth, eighth, and tenth home and they are raising their prices. The house that you really want to buy today will be much more expensive in the next few months. Here's the beauty of it: Let's say you buying and building a new construction home that costs around $300,000 in a certain neighborhood. You want to be one of the first people to build and help in that neighborhood because, by the time they finish their neighborhood, three years from now, their prices are going to continuously increase. This means your house's worth can go up to $400,000. That's instant equity.  All I'm saying is, you need to think from a pricing perspective. Whether we like it or not, prices are going up and it is going to get to the point where we are price gouging. As an agent, I don't feel good saying that to my clients.
 
4. Get an agent who specializes in the New Construction Market.
You need an agent that understands and knows the New Construction Market like the back of their hand. It is more important than ever to have someone who has a relationship with New Construction Builders because a lot of things are happening today such as, people losing their jobs, and people who are falling out of contract. When this happens, you need to be on the show. How do you get insider information from the builders? Get a reliable agent with outstanding relationships with the builders. You can count on me and my team at Chatman Realty Group. We're on a shortlist when people fall out of contract. We always get notified and we are on it
all day. You need that kind of agent to get you on the forefront whenever there's a vacant slot. 
  

5. Be up-front with your in-house lender.
If you decide to go with an in-house lender, you need to have a conversation so you can have a solid understanding of where you stand financially. The number one reason why deals fall out is that people are not being completely honest with where they are financially. The last thing you want to do is go through the process of building a home for six months, only to find out that you can't afford to buy it in the end.

 6. Get a really good home inspector.
Even if you are building a new home, you still need a home inspector to make sure every nook and cranny is flawless. My partner, Derek can take care of you when it comes to your Home Inspection Needs, and I highly recommend him in DFW. Derrick and I talk in our previous videos about why you need to have a Home Inspection for New construction on my YouTube Channel so go ahead and check it out. 

7. Go with a good builder.
This is not time to try to drop on a fly-by-night builder who hasn't been in the business for some time. 
 
8. Be confident in your decision-making.
You need to make sure that you understand what you're going to be going for. When it comes to new construction homes, your earnest money is at risk because the builders taking all of the risks.

If you need help in finding a New Construction Home in the DFW area, I'll be more than happy to do that for you. I have an awesome site where you can browse Brand New Construction Homes that are active on the market.