There have been so many interesting things going on this past week I was able to shoot some fantastic homes for Extra this past week. One in particular was an 18 million dollar “Bachelor Pad” high a top the Hollywood Hills. It had amazing views of the city, and even more amazing views of other celebrity homes as well. Yes, directly across the way are Sandra Bullock’s and Leonardo DiCaprio’s hot Hollywood homes.
Also, this coming weekend is one of my Mansions and Millionaires: Celebrity Real Estate. I am showcasing some of the best real estate on the market right now. And a few of the top real estate agents in the country. In fact, there is also a great segment with Coldwell Banker CEO Jim Gillespie. And a segment that gives some great tips directly from my book Before You Buy!
Lastly I wanted to share this article that appeared on CNBC.com:
Buying New Construction – Tips You Need to Know.
LOS ANGELES – Homebuilders are eager to rack up sales this spring, and many are offering incentives and even some price reductions on homes.
So how best to find a good deal on a new home?
While homeowners looking to sell their property might balk at an offer that is too low and pull their home off the market, homebuilders have money invested in land and construction costs and can’t afford to just sit on the homes they build.
With a little research, anyone considering purchasing a new construction home can improve their chances of negotiating a better deal, says Michael Corbett, real estate expert and author of “Before You Buy! The Homebuyer’s Handbook for Today’s Market.”
When considering an already built home, Corbett suggests buyers find out how long ago the home was built and how many residents are living in the development.
“The bigger the inventory, the more leverage you’re going to have,” he says. “The longer it has been on the market, the more leverage.”
Another essential step is to check the price at which comparable homes in the development sold, but ignore transactions that are more than 60 to 90 days old.
It also is important not to put too much stock in the price of other, similar homes in the development that have yet to sell — an argument one might hear from a builder’s sales representative.
“A house is only worth what it’s going to sell for, so don’t be bamboozled by a higher price on the properties that are sitting there,” Corbett says.
To structure an initial offer on a new construction home, one must weigh the recent comparable home prices, how many homes are left to be sold in the development and how long the home has been unsold.
But definitely make an offer that is below the asking price, Corbett says.
“Some buyers are timid, they don’t want to insult anyone,” he says. “In today’s market, go in a little bit lower. Unless you do, you’re never going to hit the middle ground you want to hit.”
It’s hard to say how much lower, but Corbett offers an example: If the house is listed at $400,000, try going in at $375,000.
However, if recent comparable sales at the development have gone for $350,000, for example, then the buyer should make an offer at that level or below.
And if the development has 30 empty houses, that’s a good indicator the bid should go even lower.
“You really negotiate three times,” Corbett says. “When you make the offer, a counter offer and after the inspection.”
Among other tips Corbett recommends:
— Even though a new home often comes with a guarantee, pay for a home inspection so you avoid any repair surprises.
— Get a real estate agent or lawyer to assist with the transaction.
— Don’t be fooled by model home staging tricks, such as smaller-scale furniture, glass tables and doors removed from their hinges in interior rooms — tactics often used to make the home look bigger.
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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