As the real estate market begins to calm down, many worry about
making a profit on their homes. Here's an example of the "follow
the builder" profit strategy.
Follow That Builder
In many areas of the country, there are builders who build
hundreds of houses each year within a fifty mile radius of each
other. They build entire communities, or are one of three to
five builders who build entire communities around big employment
centers. This is important. Hang with me and you'll find out why.
Serendipity
The first couple I met who worked the pattern I'm talking about
did it the first time almost by accident. They bought one of the
first houses built in a neighborhood that took about two years
to build out. Toward the end of the two year period, they were
out for a walk and, on impulse, went into a house under
construction that represented a bit of a "move up" from their
home. The same builder who had built their home was building it.
The couple went to the sales office of the builder and found out
that the house they'd walked through was already under contract.
They were shocked to find out the price was $150,000 more than
they'd paid for their home! The house was a little larger, but
not enough to account for the difference. In fact, they found
out their home had increased $100,000 in value.
A Repeatable Pattern
Builders usually have bright, attractive, cheerful, enthusiastic
people on their sales forces. These people often have a wealth
of knowledge. They know (or can usually find out) which
communities the builder has built in, is building in, and maybe
even where they're going from there. They know a lot about the
pattern of price increases for various models. They have some
idea of the speed of build out.
It's also possible to take walks in a builder's neighborhoods
and ask people how that builder is to work with, if construction
and "punch list" completion are done reasonably and well, and if
they'd choose that same builder again under similar
circumstances.
If all the information you develop is favorable, you can start
to "follow that builder." Builders usually sell the first few
houses in a neighborhood for less money than any of the homes
subsequently built. They're contracted for before the streets
and amenities are complete, and it takes a lot more imagination
to see a charming, pleasant neighborhood where now there's only
mud and bulldozers.
Follow the builder is a strategy that has been used. If you like
a particular builder, you can use the strategy to put serious
money in your pocket.
More Information:Visit
http://www.fsboamerica.org/ for more details.
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