Flat Fee MLS Listings in Alaska, Arizona, California, Idaho, Louisiana,
Montana, Nevada, New Mexico, Oregon, Texas, Utah and Washington

Archive for the ‘Buyers’ Category

Nervous about buying New Construction from a struggling home builder?

J. Andrew English J. Andrew English
Wednesday, December 31st, 2008

It’s a concern of many right now. Today’s “incentives” offered by new home builders to help increase foot traffic are every where right now… but what happens if they go under? If you are buying new construction, you need buyer representation more now than ever before because of this very issue. If you have questions regarding a new construction purchase, call us and let us assist you. There are many different things to consider during your new construction purchase, however, let’s look at a few from from a generally forgotten perspective. Builders are going out of business each and every day. How does this affect their existing construction warranty’s? What happens if I am under contract to purchase a new construction home and the builder goes under? How do I get my earnest money back in this situation? There are many questions to ask before entering into a purchase agreement with a builder, regardless of the incentives being offered.

Do not be fooled into thinking larger home builders are immune from the current economic condition. The master planned area of Rhodes Ranch in Las Vegas was noted by Moody’s on Tuesday as currently having a negative outlook due to a serious grim liquidity situation. Current revenue and expected revenue for The Rhodes Companies LLC is not expected to cover existing required debt service. As a result, the company is burning cash reserves left and right. Always be certain to take your time and do your research before entering into a purchase agreement. Many incentives are placed with time restrictions to help induce the seller into making a drastic decision quickly. Relax, do your research, the incentives will still be there next week.

Cashier Check versus Official Check – Arizona

J. Andrew English J. Andrew English
Wednesday, December 10th, 2008

When a buyer comes to the closing table, they need “good” funds to close the transaction. Going into closing, the escrow officer will notify the buyer how much they need to bring with them to close the transaction. “Good” funds are typically referring to a wire transfer or cashier’s check. “Good” funds help speed up the closing. For example, in order to close within 1 business day of signing, the buyer must not bring an official check from the bank. This will delay the closing process. In the event your bank will not produce a cashier’s check, ask your bank about their wiring procedures.

Cashier Check – Preferred type of check for closing – allows for same day or next day closing
Official Check-  can not be accepted for next day closing-can delay closing for up to 5 days.

The same above holds true for a seller bringing cash to the closing table. (in the event the seller owes more on the property than the agreed price)

New Home Construction

J. Andrew English J. Andrew English
Thursday, November 20th, 2008

If you’re in the market for a home or will be in the upcoming next 12 months. I highly suggest taking a look at new home construction. First, completely disregard the advertised builder price. It means nothing to you. Think of it this way, when you are negotiating with an individual seller who is in financial trouble, you are negotiating with someone who probably only has to sell that one property. On the other hand, when you’re negotiating with a builder, that builder may have 500 existing units throughout the state they need to unload. I can assure you, that same builder has much more incentive to start moving inventory off the books than the individual seller. Many new construction homes througout the west are selling at prices drastically below list prices. It sounds crazy, but you can actually buy new construction at REO prices if you do your homework and you’re willing to be patient. Call us for more information and our buyer rebate program at 800 657 6579.