You've seen them on the news. You've read about them in the newspaper. Sometimes they even occur in mediocre real estate markets. Campouts for new homes: the practice of human beings to line up in some kind of agreed-upon order (and even spend the night doing so) to get first crack at their choice of lots. Many of us consider campouts ugly, full of hype, in poor taste, and totally unnecessary. And others think it's just a matter of doing whatever it takes to grab the home site they want their new home built on. Kind of like the squatters rushing 'round the prairie in their wagons, shoving stakes into their desired piece of dirt.

What brings about this phenomenon in the first place? To be frank, a lot of it truly is "hype" that can be created by one of several culprits. The builder could be offering incredibly great or below-market "pre-model" prices to get momentum going before his project is fully up and running, and that will create a stir with the buying public. That's done by a good amount of advance advertising, using direct mail, radio spots, or "teaser" ads in the paper. It could also be blamed on location, unique new home product, or a pent-up demand for new homes where few existed. Another culprit is a marketing-savvy salesperson, who spreads as much word as possible to his potential buyers that they will lose if they snooze (except outside the sales office door) .

Whatever it is that creates this frenzied stake-claiming crowd, there are some things new home buyers should find out before they go to such great lengths and get caught up in a camp-out situation. For instance, how are the names of potential buyers being kept track of for a priority list? Is it going to merely be "first come, first served"? A lottery system? Will they use the dates off the interest cards? What is being done with those who voice interest by phone and haven't filled one out? Can Realtors fill out cards for their buyers, reserving a place without the clients accompanying them?

Try as sales types do to be fair about what number each buyer is on a list, there is always going to be someone who is unhappy with how a priority system is set up. One major builder I know of was recently sued by a buyer because they felt unfairly discriminated against when it came to having the best chance at a home site, and it affected other elements of their life. Pretty far-fetched? After all, what isn't considered "out there" any more in our quest for the American Dream?

Although it pains me to say it, the "first-come, first served" method of permitting buyers to physically line up outside the sales office door may be the best after all. No lists, no phone calls, no posturing, and no favoritism of any kind. Those early birds who want to get the worm, however, should have more than one home site in mind, if they aren't sure they'll absolutely be the first in line. They should also try to get pre-qualified for a mortgage loan, and have made lots of "back-up" decisions as well. What if the plan they like doesn't fit on a particular lot? Which would be sacrificed; the location or the house? Find out how soon construction may begin on the homes (does the builder have all the green lights to write real contracts and start the houses?) and if you can live with that time frame.

As undignified as a camp-out may be for a new home community, it doesn't seem as if anyone has come up with a sure-fire system for the initial release of new homes when it's obvious that there's a winner in the starting gate. People will just do what people have to do when they feel it's necessary, I suppose. New home builders love it, TV stations report on it, and buyers either walk away puffing out their chests, believing they just reserved what they consider to be a little slice of heaven, or disappointed that they lost out on the "good ones".

Whatever it is, it ain't gonna change in this millenium.

Published: June 4, 1999

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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.