Builders use promotions to draw customers in. If one company is offering $50,000 in free upgrades and another has no promotions, the choice seems obvious. Who wouldn’t want those extras? Unfortunately, those “great deals” can be misleading. Before you make your final decision, it’s important to really understand the offerings. Watch out for these common builder promo tricks.
The Overpricing Technique
Perhaps the most common trick that builders play when it comes to these promos is building the cost of the promotion into the starting price of the home. This means that companies with promotions typically have higher starting prices than companies that don’t have promotions. For you, the difference might not matter because you want the feature that the builder is offering in the promotion. However, you might be able to get your dream home for a better price by adding those same features on to the lower starting price of another builder.
The Overvaluing Technique
It’s also common for builders to overvalue the promotional upgrades. The “free” quartz countertops installation valued at $10,000, for example, might actually cost only $7,000 if you were working directly with a professional installation company. It might only cost $6,000 as an upgrade with another builder. If this is a feature you really want, ask other builders about the cost of adding it to your home. Don’t be afraid to check the price from local contractors as well.
The Upgrade-That-Should-Be-Standard Technique
One builder’s upgrades are often part of another builder’s standard model. For instance, a builder might offer you a “free upgrade” to stainless steel appliances. Another builder, however, might offer those stainless steel appliances in all of their homes, and do this at a lower price. You feel like you’re getting a good deal because it’s “free,” but it’s not really.
The “Only Those Who Qualify” Technique
Sometimes, there’s a catch to the builder’s promotion. You might only qualify if you can close on the home quickly or want to use their preferred lenders. You might have no problems qualifying for the promotions, but if you find out you don’t qualify at the last minute, it can be a big, expensive disappointment. Always read the fine print before you settle on a company.
Watching Out For Yourself
The only way to be sure that you’re getting the best deal on a home is to compare the true cost of building each home. You need to determine each feature that you want and get estimates from various companies. Some of the important things to consider are the number of bedrooms and bathrooms, types of flooring and appliances, and any outdoor features like patios and landscaping. With this list in hand, a builder should be able to give you a true estimate. These estimates will factor in any builder promotions, so you can truly compare options.
It’s important to choose a builder that offers you a good deal and can provide you with the home you really want. It’s only through a careful comparison of the offers that you can choose the right one for you. Don’t get blinded by the lure of a builder promotion without taking the time to determine how good of a deal it really is.
If you want to speak with one of our area managers about current promotions and standard features, we encourage you to go out and visit one of our showhomes. To make this easy we created a handy downloadable show home map for you. Just click here to download the showhome map and then go visit the showhomes today!
Photo Credit: house, signs
