Sacramento Real Estate Views

Archive for the 'Rocklin & Roseville New Homes' Category

5 Reasons You Need a Realtor when Buying a New Home

Buying a new home is substantially different than buying an existing home.  I would know, I’ve sold many resale homes and I’ve also worked for one of the largest, publicly held home builders in the nation, Pulte Homes.

This gives me a depth of knowledge when working with a new home buyer that other Realtors who haven’t  had this experience can’t possibly know.  No amount of fancy letters behind the name of any Realtor can substitute for successfully selling new homes for a builder and working in that environment.

The Pitch: Buying a new home? Call me.  It would be a mistake not to let me represent you with my experience in tow.

Now, beyond that, here are some other reasons you want representation when purchasing a new home.

The Contracts and Disclosures

The paperwork in buying a new home is vastly different than purchasing a resale.  Realtors selling a resale use, mostly, California Association of Realtors (CAR) forms approved by the CAR attorneys in concert with the Department of Real Estate.  New home builders do not.  You’ll need someone who understands these differences to explain it to you.  Can someone whose never seen them do this adequately?  Your call, I’m just asking!

Warranties and SB 800

New homes are legislated far more than the resale side of the business.  Ask most Realtors what SB 800 is and you’ll get a blank stare most of the time.   Understanding this will help you to realize why buying a new home is so beneficial.  This is a MAJOR difference between buying new and existing homes.

Use the Builders Lender?

Using the builders lender can be tricky.  Some of the builders are using outside lenders while others have their own lenders who are under the same umbrella and affiliated with the builder.  Some Realtors will tell you that using the builders lender isn’t a good decision.  The proof will be in the fees charged and the incentives offered.  I generally recommend that the buyer uses the builders lender as the cost of using your own lender won’t be offset by incentives.  Incidentally, Pulte Homes has the best team of mortgage people I’ve ever run across.  I would ALWAYS recommend using their lender when purchasing a Pulte or Del Webb home.

Construction

New home sales consultants are trained in the current building standards of the homes they sell.  It’s part of objection handling and knowing the difference between one builder and another.  Understanding quality workmanship is critical to buying a new home.  Trust me on this.  The builder who built my home built it with components that won’t hold up in a stiff wind.  Every sales associate that works for the builder who built my home lied about quality.  They had to or they were not trained to know the difference.  Do you want to take that chance?  Knowing the difference between builders and what they build is critical to peace of mind.

and finally

GET THE BEST PRICE AND TERMS

You don’t work in the sales department of a homebuilder like Pulte without learning a thing or two about what they will do and what they won’t do.  Once I had a Realtor come and “negotiate” a sale for his client on a home that was a month from being finished.  He was trying to discredit the community and it’s pricing in an effort to get a better deal for his client.  I simply told him we don’t negotiate and asked if he needed me to leave the room to chat with his client which I did.

When I came back he asked me for a $5K discount on the home priced at base plus upgrades.  $5K…$5K!!!  I smiled and excused myself to chat with my community manager to tell her that I just saved the company $10K.   I had been authorized to give up $15K to make the deal work if need be.  By “negotiating” he cost his client $10K she didn’t have to spend.  INEXPERIENCE COST HIS CLIENT THOUSANDS!

The reason for this is knowing how the builders figure costs and where to ask for discounts. It’s not hard once you’ve worked in the industry to get the best possible price for your client.  The $5K discount cost the builder about $1,500.  That’s no discount.  This is where I can really help.

Well that’s my take.  I wouldn’t trade my experience at Pulte Homes for anything.  Some of the most professional and caring people I’ve ever worked with.  What I learned there will help me to be successful in the future.  I will always favor Pulte and Del Webb homes because they are one of the best production builders out there, bar none.

If you need representation purchasing your new home, and believe me you do, please call me at 916-532-7653. I’ll be happy to help you  or someone you know.

By the way, there are WAY more than 5 reasons to be represented when buying a new home.  Check Gena Riede’s article about her take.  It’s a good one.

Tags: cambridge, Del Webb, lennar, meritage, New homes in Sacramento, pulte, syncon, tim lewis

Listen to your Grandma! News from the trenches..

The Sacramento real estate market over the last few years has left much to be desired but the signs are there that this nightmare is coming to an end…the proverbial “light at the end of the tunnel” is appearing, the angels are singing on high…Oh the Rapture! aahem! Sorry, it’s been a good month for us so far and I’m excited.

With all of the negative media talk, it’s hard to hear through the shrieking to get to what’s going on out there right now.

In the new homes market, builders are generally the last to feel the market pinch and the first to see the signs of recovery. One of the reasons for this is that the larger builders are publicly held companies that have boards of directors and stock holders to answer to. They will do everything they can to get homes sold, meet goals and that means they price their homes right, some offer incentives or give things away to motivate people to buy.

This last weekend, the builder I work for, Pulte Homes, Inc., had a sale. It was a nationwide event where we offered 4 free options, this primarily was directed at homes that are “out front” or yet to be built or six months with no payments, closing costs paid, directed toward inventory or 30 day escrows.

Our national goal for this event was 60 homes sold for our division. We shattered that goal, shattered I tell you!

Of the homes sold that weekend about 45% were sold in the active adult communities of which there are 2 in the division. This is significant. Why, you ask? The active adult buyer is one of the most savvy buyers in the market. Typically they have bought and sold many homes. They have been through many downturns and know what the signs of recovery look like.

While they may have years of equity in their current homes, they are generally on fixed or limited incomes and don’t often like to take risks unless the risk is minimal.

Traffic at our communities is up 39% since the first of the year and cancellation rates are down 8%. More people are looking and less people are canceling. If fewer people are canceling and most who are buying have homes to sell, the resale market must be picking up as well.

Mike Lyon from Lyon Real Estate is quoted as saying recently that the pending sale number doubled from December to January. I spoke to a Coldwell Banker agent today who told me he lost an all cash offer he made for a client on a property recently. Why?

Because there were 8 other offers on the same property. Multiple offers? In this market?

45% of sales in the active adult communities. Are your grandparents trying to teach you something? Something that even the SacBee doesn’t want you to know? I think so.

Ignore the headlines…this is an awesome article by a nationally known money guru…take it to heart. Your Grandparents have!

Tags: New homes in Sacramento, Sacramento homes, Sacramento real estate market

Fencing…a different perspective

I got an email today and while I haven’t heard this a lot lately, I guess it can be taken as a good sign. It read like this:

“Rob, We understand that the housing industry is suppose to continue to fall into next year……. We are holding off to see what the market will bring.”

There is a lot of fence sitting going on out there right now, here’s what I think.

“Last year about this time, just prior to the mortgage crisis, the NAR and others stated that they foresaw that 2007 would be a flattening year with a nice recovery, or soft landing, occurring in 2008. As we saw, that wasn’t exactly how it went!

I guess the short answer is that no one really knows what the market will do. It could get worse or it could begin to flatten or it could get better. Based on history over the last 30 years, this is one of the worst downturns of them all. (If I think about this honestly, I feel very comfortable about the future!)

We are at 2003 level prices currently in the resale market and new home builders, traditional and active adult, are generally in a better position than resale. They are the last to feel it and the first to rebound. This is due to many factors.

The following link will take you to a couple of articles in favor of buying now and I’m sure you don’t need any information resources against buying now.

Will prices descend below 2003 levels? If I could answer that question, I’d be a bazillionaire.

Buying California real estate has always been a good investment if held for the long term. The general rule of thumb is that it doubles in value every 10 years. So I would say that if you’re planning on buying and then selling in the next couple years, then analyzing the market on a micro level is definately the strategy.

However, if that isn’t the plan, I believe its a great time to buy. I don’t personally believe that prices will go that much lower but you never know. I could be wrong. Many were wrong about 2007.

I do know this: 10 years or even 5 years from today, there will be many people who will be kicking themselves for not buying this year. Do you want to be one of those folks?” (I even think in 2 years, there will be A LOT of kicking going on!)

So how’d I do? I’m almost afraid of asking what you’d say…I’ve seen some of the nasty press out there lately. Be gentle…aside from what your reading, there are some bright sides. Things are getting better, it’s a great time to buy.

Why don’t you come down off that fence, aye? I think even Chicken Little just bought a home! (or two!)

Tags: home buying, housing, market commentary, Sacramento New Homes

Glenbrooke by Del Webb – Premier Active Adult Living

Glenbrooke by Del Webb

Glenbrooke by Del Webb is a beautiful community of 631 homes located in the southern most part of the City of Elk Grove.

Glenbrooke features 6 models ranging in size from 1257 to 2252 sq. ft. two and three bedroom detached single family homes, all single story. Standard features include granite counters, with choice of color, 18″ tile floors, stainless steel appliances and much, much more.

The entire community is surrounded by walking and bike trails that weave through the Madeira Master Planned Community.

The Arbour Lodge

The Glenbrooke Community Center and will host indoor activities rooms, big screen television, a fitness center and a full time lifestyle director who will develop clubs and activities for the residents of the community. Outside are tennis courts, a swimming pool/spa and bocce ball. The Arbour Lodge will be opening sometime in the mid March to mid April time frame.

The Del Webb Lifestyle

Since 1960, Del Webb has developed communities specifically for people 55 years old or better. This means that the things that you would usually see in an average, everyday community will be absent at a Del Webb community. That is the reason people choose the active adult lifestyle. You’re surrounded by people who share your interest and life experiences.

To experience the Del Webb Lifestyle, please feel free to contact me. Click here.  If you’re already registered with Del Webb and Pulte Homes, I won’t be able to help you get the best deal on a new home.  In any case, please feel free to contact me with any questions.

Tags: active adult lifestyle, Del Webb homes, Glenbrooke, Sacramento New Homes