I want to put a pre-construction in a planned community. Comps for post-construction purchases are $750/sqft. What is reasonable for pre-construction?

There's a range of about $650-$750/sqft for homes of comparable size sold in this master-planned community. The $750/sqft comp is most similar to the home I would be buying in many ways, but by the timeline it seems like that purchase was made post-construction. Do developers put a premium on pre-construction since you get to pick your finishes? Or does the uncertainty generally translate into leverage for the buyer? If useful for context, the development as a whole is nearly complete, and housing supply in the area overall is tight. Thank you!
(0) | asked by: Heather Green | share | 8 months ago | Report
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answer by Rich Reed    |   Visit My Website   |   Contact Me
Hi, Heather. Your best bet may be to work with a local Realtor. Often, builders will compensate a buyer's agent at no cost to the buyer, but they usually require that you work with your agent from the start. If you're already working with the builder, the builder may not allow you be represented by a Realtor. Builders often set firm base prices, negotiating only add-ons, upgrades and incentives, if they negotiate at all. Your Realtor, and later, your appraiser if you're financing, will compare your new home with all of the sold homes with similar square footage and quality in the area. So, the answer to your question is that new construction homes are sometimes pricier than comparable resale homes. Buyer's leverage is subject to supply and demand, and you said that supply is tight in your area. Hope this helps!
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answer by Natalie Sjaardema    |   Visit My Website   |   Contact Me
Hi Heather, there is a site called REIS that does exclusively new home community comparables. Check them out on Google. You will get answers to your questions lickety split. Best of Luck to you!!! Natalie
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