Expert: Ray Beggs - 4/18/2006

Question
Hello,

My boyfriend and I are currently looking to purchase a new home directly from the builder.

We saw a lot today in a phase that hasn't begun construction yet.  We were told that we couldn't put a deposit down on properties in that phase, as it hadn't been released to the public.

We called back later in the evening, however, to ask some questions about that property, and were told that another party had already been given priority on that property.

Something sounds strange to us - we were told they weren't taking any deposits - and yet another party managed to get priority on that property over us.  Shouldn't we all have the same shot at the property based on the initial information we received (no deposits until the phase is released to the public)?

We are pre-approved for a mortgage, credit is great, and are non-contingent buyers.

We are both novices to the new home purchase process, and any advice you can give is tremendously appreciated.

Answer
Hi Juanita,

Congratulations on your decision to buy a new home. Welcome to the wonderful world of trying to get one in the type of market we are currently in! It can be dog eat dog. My suggestion is to find the homes that you would like to purchase and then just make it your goal to get one. Hang around the sales office, make friends with the sales reps, get them a pre-approval letter from a bank (preferably from the bank that they recommend...they like that) and KEEP CALLING THEM! We are in a very busy market and what happens is that the builders generate this HUGE amount of interest in the 200 or so homes that they plan to sell. They do this to make sure that they sell them all. They have to have them all sold quickly. I don't know why you ran into the exact situation that you did, but I can guess that maybe they had someone from another phase who they needed to accomodate or maybe the phase opened up later in the day, after you talked to them. Remember, the builders make the rules about this so if they break their own rules, you can go to the higher ups at the company and voice your concerns.

My dad used to always say, "The squeaky wheel gets the most grease." Make it a mission to get your new house. Fight for it. Make them sell you one to get you out of their hair!

Best of luck to you and don't give up.

Ray