Does Big Discount = Good Deal?

How to get an INTEREST FREE LOAN from the Government

November 7, 2008

Spring Texas Neighborhoods – Spring Creek Forest

November 12, 2008

$10,000 discount on selected homes, $15,000 decorator allowance, $10,000 towards closing costs, $2,000 gift card … all of these are forms of incentives Spring Texas home builders are offering to attract buyers. But does a big discount equal a good deal on a home?

The builders certainly want you to think so. And home buyers, you want to think you got a good deal too. Because nobody wants to overpay for a home. And after all, if the home builder tells you its a good deal it has to be a good deal. Right???

WRONG!!!! Here’s some food for thought. Maybe the builder is offering BIG discounts on his remaining Spring Texas homes because nobody else wanted them. Maybe the reason they have not sold is because the homes are over-priced in comparison to other homes available on the real estate market.

Or maybe the home is in a less than desirable location (such as backing to a busy road, backing to commercial, close to a railroad track, or close to an airport). Maybe the homes have not sold because of its lot characteristics (such as power lines in the back yard or the size of the back yard is small.)

Maybe the builder is offering a BIG discount because the selections in the homes are customized. But not customized in a good way. They have been personalized to the extreme (such as green carpet or a red tile backsplash when the other houses in the neighborhood have tan carpet and beige tile backsplash).

All of these are reasons why BIG DISCOUNT DOES NOT EQUAL GOOD DEAL. Because they all affect the future resale value of the homes.

There is only one way to know for sure if you are getting a good deal on the purchase of your Spring Texas home. Get a knowledgeable Realtor to represent you in the purchase. He/she will be able to advise you as to how the home’s location, amenities, color selections, and lot characteristics will affect the home’s future resale value. By analyzing the prices of recently SOLD comparable homes, your Realtor will negotiate a good deal for you and not just a good deal for the builder.