Aug 10

Base Price on New Homes- How to Compare

For the non-readers of the blog:

The lowest base price on a new home doesn’t mean it has the best value. Buying a new home is complicated. Do your homework.

For the rest of the blog readers, here’s the question- how do you sort out the options and standard features of Delaware new homes and Delaware builders? If you want to truly compare Delaware new home builders, then you have to do your homework.
Here are some basic questions you’ll want to know about what a Delaware builder can offer:
First, Delaware transfer tax. The state of Delaware charges a 3% transfer tax on all real estate. It is very common in most real estate transactions that a buyer and seller split this tax. In Delaware new home construction, it is also very common for Delaware builders to make the Buyer pay the full 3%. If the builder doesn’t split the tax, then you’ll need to figure the additional tax into the cost of the house. That additional tax adds $3,750 to the cost of a $250,000 new home.

The first question you should ask the builder is whether or not they pay half of the transfer tax. If they don’t, then add 1.5% to the cost of the price of the house. At Capstone Homes, we DO split the transfer tax.

A real-world illustration of this would be as follows: a Delaware new home that is offered at $300,000 from a builder that does not split the tax is actually $4,500 more expensive than a $300,000 new home from a builder that does split the transfer tax. The difference is substantial.
That’s the easiest item to address when comparing builders. The next thing is the standard features and the options. It is impossible to find a two builders who offer identical standard features, and the charges for upgrades can vary wildly from builder to builder.
For example, Capstone Homes uses a luxury cabinet- full overlay maple with dovetail, soft close drawers. Most builders start with a partial overlay, oak front cabinet. Are 9′ ceilings included? Granite? Capstone includes these features in most Capstone communities, but not all builders do the same. The best thing to do is know your desires in a Delaware new home… and then match those desires to the builder with a combination of the standard features and upgrades.

Capstone Home’s recommendation is to price out the home you desire with each builder.

Be prepared to spend some time with the sales representative in order to complete this task. Very few builders will provide a complete list of option prices without sitting with a sales representative. The process can take an hour or more per builder. Price the Delaware new home that you want, and make sure you price the same items with each builder. Once that is done, you should have a pretty good comparison on a similar home.
This can be a long process, but remember that building a Delaware new home is a complicated process. It is worth the investment of time to get it correct. The more a buyer is able to sort out the difference between truth and marketing the better. At Capstone Homes, we think an intelligent buyer is rewarded.

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