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Buyer Tip: Why DFW Home Builders Are Cutting 2017 Year-end Prices

Posted by Mike Askins on Tuesday, November 28th, 2017 at 1:33pm.

Happiness is Getting a New Home Deal!You know, very few Realtors, understand the new home business quite like ARG, but what good is this knowledge, if we don't share it to expand your understanding of the larger picture about market timing opportunities.

Unlike owners of pre-owned homes, who can choose not to sell, new home builders don't share that luxury if they want to stay in business. In fact, a builder loses ~1% of their profit margin each month a completed inventory home remains unsold.

Because all home builders require "cash flow" to cover the cost of payroll, warranties, advertising, bank notes and many other business-related expenses, monthly home closings are closely monitored. When closings decline and continue to underperform for an extended period, builders react by reducing prices.

Finding Year-end Buying Opportunities is Simple with ARG!What appears to be at play this year is a case of simple oversupply. Builders and developers have now outpaced buyer demand and opened too many communities with the expectation that they would be selling many more homes, when in fact, the oversupply has created a temporary bubble of unsold inventory and has spread real buyer demand over too many community choices. This condition of oversupply is local, meaning not all areas of the Dallas Fort Worth Metroplex are affected. Some locations are going gang-busters, while others have cooled considerably.

When inventory levels are carried deep into year's end, publically traded home builders may decide to offer drastic price reductions to pad their "fiscal year-end numbers" to protect their stock price. Privately owned builders will shed new home inventories, to avoid having to pay profit-eroding higher interim interest cost penalties on build jobs in the coming new year.

So many unique market factors "peak" at year's end, making it a golden opportunity for savvy home buyers to find that exclusive new home deal with scores of builders. Showing up when others are not buying, or when there is an oversupply of unsold new homes, like now, is the best way to gain increased bargaining power as a new home buyer.

Who knows what next year will be like, but I would bet doughnuts to dollars, that builders will be extra careful NOT to oversupply the market with inventory homes, hence why these special new home deals may be the deal you have been waiting for.

Nearly all major master-planned communities are cutting YEAR-END Deals!

Find Your DFW New Home Community or Specific DFW Towns or Search by Home Builder.

Negotiate - Get the Real Bottom Line - and Get a Cash Rebate for Max Savings!

It's Your Choice. Pay the Same Price and Get No Rebate, or Contact ARG for a Rebate worth Thousands!With ARG as your new home Realtor specialist, your savings do not stop at the builder's final bottom line price. With ARG cash rebates up to 4% based on your new home's sales price, you can quickly add tens of thousands of dollars in additional cash back savings to your bottom line new home purchase. We have helped families like yours save millions over the years and we're happy to offer this to you. If you have a home to sell, ARG offers a free move-up, in place of our Rebate offer, and full client services. See ARG listings we have sold.

DFW Home Builders MUST SELL! Time to Catch some great new home savings!

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Copyright Attribution

Copyright Attribution

Mike Askins

Mike Askins, Realtor, Owner ARG, 20 Years of Client Services
Got questions for Realtor Mike? Call me at 214-727-3686 (mobile)

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