Have you noticed that new homes are rising out of the ground all over Prince William and Woodbridge in the middle of a "real estate slump"?
How come builders are still selling when existing home sales SEEM to be stalled?
Builders price homes with their HEADS; too often, home owners price their homes with their HEARTS.
Builders set their prices based on market facts. Some home owners set their price based on facts, but the vast majority of owners base their asking price on EMOTION.
Builders are selling a commodity.
Home owners are selling a comodity too, but most don't know that. Most owners view their real estate as a prized possession...
I popped in to see Beth at Victory Ridge today to find out how many homes she has been selling.
Beth is the new homes Sales Manager for NVHomes at Victory Ridge.
Beth has logged 3-5 sales per month over the past year.
That's an ideal pace for a cozy subdivision because the construction supervisor can start one new foundation each week; four new "starts" per month.
"But Erick, but Erick!!! The builder down the road from MY house was selling houses in the $700's two years ago... now they are selling the same exact houses in the $500's. Was he making a fortune two years ago, or is he losing money now?"
Gentle reader, the cost of sticks-and-bricks to the builder is roughly the same as it was two years ago. However, the land developer has dropped the price for his building lots $200,000.
Builders gross profit (not net profit after overhead and taxes) is only seven percent (7%) or less.
"But Erick, but Erick... I thought all builders were greedy jerks who were toting huge sacks full of cash to the bank... and besides, I thought the builder WAS the developer."
Developers develop land into finished building lots they then sell to home builders.
Developers dig dirt... home builders cobble sticks-and-bricks together.
Home builders are CUSTOMERS to a land developer.
If the developer's customer can find cheaper land down the road in a declining market, the builder will pack up and move.
However, the land developer can't move his land somewhere else where he can sell it for a higher price.
Just try loading 210 acres of finished building lots onto a Ford F-150 pickup truck and drive on down the road...
So the developer eats the $200,000 price drop.
So, if you have been dreaming about getting a glorious new home, hook-up with your Family Realtor.
Your Family Realtor will help you save a ton of money when you get a new home with his/her "inside information" he/she can use to help you get the most new home for the lowest price.
And, if you have tried to sell your present home without success... take a look at your price and see if you are pricing it to sell at a market price.
Are you priced to sell, or are you being a little too greedy in a slack market.
Oh, and if you don't HAVE TO sell, don't. Relax. Your investment in your home is safe. The long-term value of real estate climbs ever upward over time.
Opportunities Are Everywhere...We Can Help You Find Your Dream Home.
Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252 list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany, Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.
Call or text Erick Blackwelder right now for help finding a home, or help selling your house.
Don't worry... Erick doesn't bite, and you won't get a sales pitch. Text or call Erick now at 703-677-1120 for a FREE consultation.
CLICK HERE NOW to search the Multiple Listing Service (MLS) for homes for sale in and around Woodbridge, Lorton, and Mount Vernon.
Exit Realty Associates
8998C Lorton Station Blvd
Lorton, VA 22079
Equal Housing Opportunity
Click the link above to email a question to me or call me now at 703-677-1120.
Equal Housing opportunity.