Profile picture for amyhayden9835

I was talking to a builder and they said that their price is increasing by 2-3k a month.

I was looking into this plan I really like. My problem is I wont be ready for about 6 months while I have to wait on some things to come together. Also im currently in WA state but will be moving to TX when my issue is resolved.
  The builder said that they have room to build for the next 18-24 months so I don't have to worry about them running out of space, but that their price is changing on average 2-3K a month, and all the builders in this area are doing this due to the economy picking up. land developers and trade contractors raising their prices. This is in the ft worth area zip 76131 if that helps. I would really like this house but I cant tell if they are just trying to bluff me to paying more or if this is a real thing I will just have to take. 
  • March 18 2014 - Fort Worth
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Answers (9)

Profile picture for amyhayden9835
The home is currently listed as 254.490. But I'm not sure if I'd want to add or remove any of the options yet. But I think in the end with what I'd want to add I'm looking at 270ish. I'd get pre approved and lock in the price but one of the factors I'm dealing with is a large amt of money I'll be getting from a settlement which should help me pay off my debt and give me a good size down. But I won't get that until like sept. I also have a short sale that will fall off my credit in oct. This yr. I guess I'm just having a hard time with getting the same house for 12-15k more just because I have to wait. Nothing I can do about that though. Unless any of you have any ideas for me. Thanks all.
  • March 19 2014
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No one can tell what prices will be in 6 months or even next month.  But, you can track the pricing for the last 6 mo or a year and see if they have been increasing as the builder says.  If sales have been brisk then they are likely going to continue to increase.  Take a look around the subdivision and see if the building is continuing and you will know.

You can lock in today's price or call their bluff.  Chances are prices won't be going down so don't expect to get a bargain two or 3 months from now.
  • March 19 2014
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Hi Amy,

I'm located in Houston where prices are increasing. Where prices will be within 6 months when you are ready to buy, it hard to say, however at current rate, prices are steadily increasing, so it is likely that the home you like today and would like to buy in 6 months will cost you more. 
  • March 19 2014
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Profile picture for donnakuehn
I am not in Texas, however my sons are builders and the building supply prices continually go up and many times during jobs they need to eat the cost. Prices of land also changes and the good builders that are busy do run into all the problems you mentioned. Hope this helps.
  • March 19 2014
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Many reasons a builders cost go up or down (materials, code changes, etc.)

A good buyer agent can negotiate the price as well as the terms, In your case you would want to draft an agreement (you can even go to Purchase and Sale) with specific lot, specs, price, etc... you can give a good substantial deposit as well. The terms your going to want are geared towards your mortgage contingency with specific date for application and specific date for commitment. Obviously the house will not be started until "commitment" is in. In some cases if the builder is carrying the construction cost and the house you want is fairly standard, he may wish to spec it anyways if he's not busy. The time frame I've used successfully in situations like this might be 30-60 days for app. 60-100 days for commitment (these are terms).

The bottom line is that you would like to purchase in this subdivision and with this builder, you require specific terms, price, specs... its up to your Realtor to present this and attempt to negotiate what will work for you and be acceptable to the builder. If you dont try, you will never know.

Good Luck and Best Wishes!  
  • March 19 2014
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It is tough to tell where prices will go.   Prices have been increasing at home builders for all the reasons you state.

However 6 months from now will also be what is traditionally the slowest period for home builders and home sellers....if there is a slow period now.

To me if you can't buy today, you can't buy.  Nothing much you can do about that.   You just have to wait and buy when you're ready.
  • March 19 2014
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Profile picture for Dan Tabit
Amy,
Can you buy a pre-sale now, to be completed when you're ready?  This could resolve your concerns if you are 100% confident of your plans.  It's not uncommon to see prices rising, especially through the spring and summer market, at least here in Seattle. Texas may be different.
Supplies here are short and demand is up.  The good news is if you're selling here, you'll be in good shape.  
  • March 18 2014
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Profile picture for USMortgageRanger
Hello Amyhayden9835

Yes prices are going up. So my advise to you is to get approved for the mortgage then get a good buyers Agent to help you negotiate the price. We will then lock in the price and the lot and have the builder start the process 3-4 months from now giving them 6 months to build and you enough time to move. I would be happy to assist you in getting approved for a mortgage. You can reach me via my profile. 
  • March 18 2014
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Profile picture for blank screen EXILED
You didn't give a present price; but the government is intentionally devaluing the dollar about 1.5% per year.  They are trying to devalue the dollar about 2% per year, according to the Federal Reserve.  That devaluation has to be factored in, even if normal people don't see that in any pay raise.
  • March 18 2014
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