Sunday, January 3, 2010
Another Richmond Builder goes down, Time to Buy New Construction?
While showing condos in Glen Allen on Friday, I learned of another builder going down. This builder who will remain nameless for this article is the 4th large builder to go under in the Richmond-area that I know of in the last 12 months. Unlike the previous 3 which filed bankruptcy and will continue selling homes and reorganize, this builder simply handed all of his homes over to the banks and just folded up shop.
In one case, his home will be relisted by the same agent for about $40,000 less once the bank has taken over. This begs the question, has there ever been a better time to buy new construction? They are giving away so many incentives and are so hungry for customers, that the total package rivals and in many cases exceeds re-sale pricing. Remember, that when shopping and/or buying with Zip Realty, even on new construction you get the 20% Buyers Rebate (cash from our commission after closing).
On top of the great prices, you may also qualify for the tax credit (including up to $6500 on trade-up buyers who've owned their own home for at least 5 of the last 8 years). While this is a tough time for builders, it can be a great opportunity for the buyer to build long-term wealth and afford the home of their dreams!