Pressure! No, that's not just the title to an old Billy Joel song; that's the reality many buyers are feeling over the urgency of completing the "buyer- responsible" details of a new home purchase these days. Why? Because the market place waits for no man right now. If buyers drag their feet holding up their end of the bargain, builders are now simply mailing out letters of cancellation for non-compliance, raising their prices, and moving on to the next buyer.

When markets shift from a buyer's to a seller's market, it's the builder that may be calling all the shots, but the builder may also be under pressure by mounting construction, land acquisition and land hold costs. Buyers who take their time getting loan approvals, making final decisions for their options and upgrades, and forking over deposit monies may be finding themselves out of a deal and no longer in a position to talk up their dream home. They may also be faced with a considerable price hike for the same house if they decide to come back and try again. (Some builders I know are raising their prices monthly!) Waiting for prices to go down or interest rates to dip again? Good luck. It's kinda like the guy who was standing on the corner downtown passing out hundred dollar bills yesterday. What good was it if you weren't there to get one?

How can you avoid getting one of those horrid little letters dismissing you as a non-performing buyer? Perform! Tie in that price by writing a contract and stick to the agreement. If the reservation or purchase agreement calls for a 30-day window to accomplish your formal loan approval, shower the lender with all the documentation they are asking for. Most builders will require this important milestone before they will even let you set foot in their design center. They have no time to spend with buyers who are less than qualified or less than committed when the market is this busy.

Although the Design Center experience can be considered one of the more positive and enjoyable aspects of a new home purchase, don't make so many special requests for customized item pricing that Design Center personnel must constantly "get back to you" with answers. Try hard to choose from among the builder's many pre-priced options and upgrades. (Many builders won't even consider special custom requests these days, anyway) And don't miss your appointments! With builders as busy as they are, you may have a tough time re-scheduling a time slot and still comply with the purchase agreement deadlines. Take some time off from work for this, if necessary (this is the one of the biggest investments you'll ever make!) and be prepared with a "wish list" of your own before you go for your appointment.

What's great about getting all this done so early in the process is this: Not only have you "locked in" a purchase price in a market where you may have a chunk of equity on top of your down payment before the house is even complete; you will also have the pleasure of sitting back knowing you have done your part. And you can and watch it all come together before your eyes--from dirt, to sticks in the air, to your kids playing in front on moving day. It just doesn't get much better than that.

Additional New Home News

Published: March 26, 1999

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Editor's Note: This article reflects the opinions of Dena Kouremetis only and not necessarily the views of this or any other publication, organization or Website owner.

A veteran of the real estate and homebuilding industries since 1986, Dena Kouremetis first joined Realty Times as a new homes writer in 1998. Since then, she has authored four books, written consumer columns on new homes issues for websites and newspapers all across the country, contributed to builder trade magazines, appeared as a guest expert on several radio shows and even created a ten-chapter podcast for LendingTree.com’s homebuilder website, iNest.com, now available on iTunes, entitled Uncharted Waters; Navigating the Purchase of a New Production Home. Kouremetis recently joined her local Folsom, CA Coldwell Banker office as a broker associate while continuing to write for the real estate industry. For the past three years, she has been training real estate agents for both the resale and new homes industries, putting her experience, research expertise and gift of expression to work to help others entering the business.