Homebuilders Care Only About Their Bottom Line

Home builders are concerned only about their bottom line. Homebuyers are a means to an end, it is all business. Those of us that remember the ’08-’09 crash, see many similarities in the current environment.  Builder arrogance remains, but they now again must seek to court favor with buyers and agents. Don’t fall for the nonsense, the bottom line is their only concern. Anything done with builders must be done very carefully and with a complete understanding that they will make the rules.

Builders WILL Control Everything

Remember the Soup Nazi? With builders, you will follow their exact process; their rules, every step. Home builders are concerned only about their bottom line

Contracts. Every builder has their own contract. That contract is not negotiable, will be exhaustive with disclaimers protecting them and filled with “don’t blame me, not our responsibility” language. You will not change it, and if you fail to close you will lose all deposits and potentially face further action. There will be no finance contingency, no appraisal contingency, and no due diligence.

Site Visits and Inspections. There’s no need for you to come out, they’ll see you at orientation and then closing. Of course, this is to keep you safe, construction sites are so dangerous. Inspection? Of course, but all credentials must be reviewed well ahead of time. Some builders maintain lists of “banned” inspectors – those that look a bit too carefully.

Fit and Finish. Homes being built now resemble garden sheds. Cheapest materials, cheapest labor, few to no options, and on postage stamp lots. Builders complain about everything and continuously look for shoulders to cry on. Many continue to see tremendous profit while many of us wonder what will these places look like in 10-15 years? Will this concrete last that long?

Bait and Incentives. As rates rose, builders dangled temporary buy downs like a box of Little Debbies at a Weight Watchers meeting. Of course, many of these lenders were part of their company or one they were affiliated with, so servicing or selling the loan…not bad. Also tossed out were “incentives”, use those to pay your agent. Builders love unrepresented buyers.

Dirty Deals. Many builders (Lennar esp) are courting investors, fully understanding that these sales will not be owner occupied. In many communities, additional phases of development are changing from detached to attached. Those are cheaper to build and are typically priced well below detached homes. Imagine being an owner, paying full price to live in a community that’s now becoming filled with investors and lower priced attached dwellings.

Control...every single thing. Home builders are concerned only about their bottom line. If any homebuyer thinks otherwise, best of luck. Always consider existing homes as well as anything new. Updates might be needed, but at least you know what you have and enjoy much more bargaining power. The best and most effective way to navigate a new build is with a skilled and experienced buyer agent, not all feel the need for that. Some think that Chat GPT, “the internet” and Uncle Leo can offer sage advice. Builders will be delighted to see you. Real estate is easy, until it’s not. And once that’s realized, it’s often too late.

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