You Should Not Be Buying A Builder Home In 2025! Here Is Why…
Have you noticed all the "incentives" builders are offering new homebuyers? Why do you think this is? Well, today I am going to breakdown what exactly is going on and why YOU should steer clear of homebuilders in 2025! First, it is important to note that the real estate market in Florida is beginning to pivot from a Seller's market to a Buyer's market. (EMPHASIZED) This pivot in sentiment will be prevalent during this email as I do a deep dive into what builders are doing and why you should, if interested in a new build, should approach with caution or even discontinue conversations. As most homebuyers stick to the sidelines disabled by mortgage rates hovering around 7% over the past few years and Seller's pricing their homes with excessively overpriced valuations, the builders are now getting extremely nervous about their inventory. Builders recognizing their imminent financial downfall due to increasing inventory are starting to incentive homebuyers with "shiny objects" to entice homebuyers to believe they will be receiving a "great deal!" Let me explain what is really going on... Homebuilders borrow money to build homes, just like we borrow money to buy homes. The difference between the two is homebuilders have a short time to pay back the money.When they cannot payback the borrowed money quickly, it starts costing them money, and it snowballs quickly!!! But here is the rub... Builders cannot lower their home prices (even though the market is suggesting it must), they instead start offering things like - Down payment assistance - Closing costs concessions - Rate buydowns - Payment of first year HOA The hidden truth about this is, it is NOT the builders thinking about you and considering your financial situation. The builders are looking at their situation and know they don't have many options. Why Won't Builders Lower The Price? To get the rest of this article, please visit the link below and follow for more understanding for the Florida real estate market. P.S. Visit the Facebook link below every Tuesday night at 6pm for the “First Time Homebuyer Blueprint” Facebook live events https://lnkd.in/emf5h7VB