Henderson, NV (PRWEB) May 10, 2006
As the home buying frenzy of 2004 and 2005 has returned to more rational levels, builders nationwide are currently offering incentive packages that may vary widely - from as little as $1,000 towards closing costs, to $10,000 in upgrade options, or all the way up to as much as $75,000 off the sales price.
Las Vegas new homes tracts have welcomed back investors and are aggressively courting their business. So for the first time in over two years it is a great time to strike a deal on a new home for both investors and primary home owners. But the deal often comes with a string attached: you must use the builder’s lender, and you will probably find that you could easily do better going to another lender with lower interest rates and terms. Over the long term, higher interest rates and closing costs can negate much of any incentive received.
For those that are savvy, there may still be a way to take advantage of the builder incentives being offered without sacrificing on interest rate and closing costs.
Since you must use the builder’s lender to get the incentive, find out what the interest rate would be for a “no cost” loan - that is a loan where the interest rate is high enough that the builder’s lender can cover the closing costs entirely with no out of pocket expense to you. This type of loan will typically range from 1% to 2% higher than the going rate. Make sure that the loan being offered has no pre-payment penalty. Then have your agent negotiate with the builder to credit you with the loan costs you would have been paying as either a reduction in sales price or as option money towards upgrades.
As you are qualifying with the builder’s lender, also find an outside lender that can give you the best rate and terms on a refinance and qualify with them at the same time to make sure this approach will work for you. You will be using the money you have saved on the reduced sales price or upgrade options to pay for the refinance. Then as soon as you have closed on the home with the builder’s lender, consummate the refinance within a few days or weeks with your new lender.
As an example - check out some of these great deals on Las Vegas condos and homes.
Developer pays your mortgage for the first year - on this great Las Vegas condo conversion at the edge of prestigious Green Valley! The developer will pay all HOA dues and mortgage interest for a year (based on interest only payments @ 6% with a 90% LTV) plus some closing costs using the developer’s preferred lender.
$10,000 off and ready to move in - Lovely 1236 sq. ft second floor condo with 3BRs 2Bas and a one car garage. Featuring maple paprika cabinetry, black appliances, ceiling fan pre-wire throughout, garage door opener with keyless entry, and beautifully upgraded flooring throughout. Original Price: $224,848 and now just $214,848! Located in the beautiful Centennial Hills master plan in a secluded gated community, with a pool, bath house, park, and sand volleyball court.
A seven day cruise for to the Caribbean or a 14 day cruise to the Mediterannean – One Las Vegas home builder launched a cruise promotion to home buyers including drawings for a seven-day cruise for two to the Caribbean and a 14-day cruise to the Mediterranean in a addition to more traditional incentives on homes priced from the mid $200s.
Everything's included special – great homes and an additional $5000 to $20,000 in upgrades from one of the nation’s leading homebuilders on beautiful North Las Vegas homes. These homes include all appliances, wood blinds, and front & back starting from $263,000.
5% off on selected preconstruction high rise units – buyers can purchase a new downtown high rise at 5% off the regular price on units starting in the low $400s. This is a limited offer available only through our sales staff – please call 702-985-7654 for details.
Now is the ideal time to take advantage of these new home sales incentives, as many sources think that the next two years are merely the lull before the real baby boomer storm that is due to hit in 2008, especially in prime retirement areas like Las Vegas, Texas and Florida. Currently there is a groundswell towards proposed legislation aimed at restricting or eliminating the practice of tying builder incentives to “preferred” lenders. However it will take years for consumers to see the results of these changes, and at that point many of the incentives may have disappeared. For help with refinancing options during your new home purchase or to find the perfect new Las Vegas home for your family, please call us at 702-985-7654 or visit our web site at LasVegas Real Estate and search the entire Las Vegas MLS database for new and resale homes online.