And there was a price increase, just like that.
Last week we had a buyer that picked out a house and a lot. We had inquired on some changes to the floor plan and had taken a day or two to get the questions answered. During that time, the buyer started a full week of work without time to go back in and write a contract. When the buyer got off after seven straight days at work she was ready to move on the house. We called the new home rep and told them we were coming in to potentially write the contract. The rep called me back with some bad news. The base price of the house and the lot has increased.
After some back and forth the builder agreed to waive the lot premium increase but not the base price increase. The buyer wasn’t willing to pay almost $10k more for the house than the prior week. We arrived at a stalemate. Despite the fact that the buyer was going to totally deck out the house in options, the builder refused to budge.
Rising Prices in New Construction Jacksonville
“I’m not trying to rush you, but I expect a price increase any day now.”
This type of thing is not uncommon in new construction in our area. The builder reps often will warn you that a price increase is coming soon, but a buyer always feels blindsided when one does in the midst of their decision making process. If you are looking into new construction there are many considerations including how long do you have to make your decision.
In the Jacksonville real estate market you have to be ready to act when you find the house that you want. Two of the biggest things we see happen when a buyer takes “too long” (even if it’s not very long) is:
1) another buyer comes along and snatches the house or lot out from under the buyer, or 2) the price increases.
Price increases mid-decision are a very hard thing for home buyers who, understandably, would like to feel like they are not being rushed. Because price increases come from the “top” not the sales reps, they can be impossible to overcome.
If you are considering buying a new home, please be aware that this can happen to you. When the builder tells you that a price increase is about to happen, or that someone else is considering the same lot, you have to assume that they are being truthful. While there is no way of predicting whether or not you really have time to think about it, we’ve seen too many buyers believe they had time and end up being disappointed.