Question about Building with DR Horton (or similar)
XpressAg09
3:46p, 02/09/12
XpressAg09
4472 posts, joined 02/07/2008
So, wife and I are looking to build in a new neighborhood springing up in Tomball by DR Horton or KB Home or something like that.

Now, there are some houses on har.com that have already-built houses in our range. QuestionIs it better to have a realtor to buy a pre-built house?

They also offer 'building' your own house on a lot. I think this might be cool considering we would get what we want, and have more say in customization. QuestionWould we need a relator for this?

We're looking to move in in October regardless of what we do. QuestionHow long does building a house take? When would I need the down payment? Does KB Homes or whoever do financing?

Thanks!
powerbiscuit
4:18p, 02/09/12
powerbiscuit
38758 posts, joined 11/20/2002
You'd probably need to put up a deposit, but it's not that much. The down payment comes into play when you close.

Finn Maccumhail
5:08p, 02/09/12
Finn Maccumhail
9899 posts, joined 08/20/2007
Not to be that guy but I'd think long & hard before buying something built by either KB or Horton.

Just do a quick google for their complaints. They're known as 2 of the worst for quality & shafting buyers.
Ramp5
7:26p, 02/09/12
Ramp5
773 posts, joined 02/22/2010
quote:
Not to be that guy but I'd think long & hard before buying something built by either KB or Horton.

Just do a quick google for their complaints. They're known as 2 of the worst for quality & shafting buyers.


This!!! Better off spending money on older existing home.
BurnetAg
7:45p, 02/09/12
BurnetAg
14725 posts, joined 06/09/2004
Built with Dr Horton and I love my home. Its built to order, with a few mods and everything I wanted. Process was easy, didnt have a realtor and dont think I needed one. Id just look over the construction of the other homes and determine if you will be happy with the quality. We signed our contract in Jan, started build in Feb and moved in June.
BurnetAg
7:46p, 02/09/12
BurnetAg
14725 posts, joined 06/09/2004
We put down $1000. deposit which was applied towards closing cost. We paid this when we signed our contract.
Diet Cokehead
7:51p, 02/09/12
Diet Cokehead
22205 posts, joined 02/09/2008
There is really no reason not to use a realtor since the seller/builder pays the realtor fees.

We just built a $400k house and put down $10k in escrow initially. That's all it took until the day we took ownership. I did all the negotiating myself and then called in my realtor when we were ready to sign the papers and he got them to pay $10k in closing costs after they told me they couldn't budge another dime.

I don't have any comments on the builders you mentioned. I will say that we had an awesome team of sales/builder/management that we worked with and it made the experience a great one. I would talk to people in the specific neighborhood to see what their experiences have been, but I think there is a lot of turnover anyway in that business. I can only imagine how much it would suck if you had a crappy builder that was a flake.

[This message has been edited by Diet Cokehead (edited 2/9/2012 7:52p).]
PlayToWin2000
1:47p, 02/12/12
PlayToWin2000
2016 posts, joined 12/04/2002
I built for Horton, an I can tell you to definitely use a realtor. Their fee comes out of Hortons pocket.

I know a great realtor, class of '01 in that area if you are interested.

[This message has been edited by aggierev (edited 2/12/2012 3:40p).]
clintaggie04
1:55p, 02/12/12
clintaggie04
2833 posts, joined 02/27/2011
Understand that the builder is going to pay a 3% commission to you realtor. I have two friends who bought inventory homes in 2011, homes that were completed but never lived in, and after all negotiations were finished and everything was done they both hit the builder with a "now you can take off the 3% you would have paid my realtor if I had one". It worked for both of them.
An important note is that there is no contractual negotiations with those builders. You are signing the exact same contract with or without a realtor. The builder WILL NOT change the contract.
PlayToWin2000
2:29p, 02/12/12
PlayToWin2000
2016 posts, joined 12/04/2002
^^^

Your friends got what they think is a "no realtor" discount.

Builders have a desired profit margin built in. Their sales counselors are told how much they are allowed to reduce the home by. Chances are they would of received the 3% even with a realtor. Plus 90% of the general population know nothing about home building. So having a realtor on you side looking out for your interests is a very good thing.
clintaggie04
2:51p, 02/12/12
clintaggie04
2833 posts, joined 02/27/2011
Well seeing as how one of these guys worked as a salesman for a homebuilder for 4 years and the other is a project manger for Vaughn Construction, I would say they might know a little about the subject.

And the built in margin for pricing of inventory homes is generally 20%-25%. Please dont act like you are teaching me something or proving me wrong.
PlayToWin2000
3:31p, 02/12/12
PlayToWin2000
2016 posts, joined 12/04/2002
nm. Not worth it

[This message has been edited by aggierev (edited 2/12/2012 4:13p).]
The Original AG 76
5:48a, 02/14/12
The Original AG 76
4825 posts, joined 10/10/1999
Realtors adds ABSOLUTELY nothing when buying from a builder.
Wife worked for numerous builders and can tell story after story of hot shot realtors screwing up done deals with their show off last minute theatrics trying to show the buyer how she can get some last minute freebies....
ONLY use a realtor if you are an out of town buyer who needs a local agent to monitor progress.
CJS4715
11:40a, 02/14/12
CJS4715
51211 posts, joined 11/29/2002
What if I wanted last minute freebies?
Dawg-97
3:44p, 02/17/12
Dawg-97
3064 posts, joined 06/10/2005
Whatever you do, DO NOT USE KB. Their homes are the made with the cheapest material and are of poorest quality. Its their business model. Lots of Sq Ftage with low quality materials. So you feel like you are getting a large home but low quality materials.
adh5199
2:03p, 03/01/12
adh5199
1431 posts, joined 11/26/2006
What about Centex, are they good?
Buck O Five
8:04a, 03/02/12
Buck O Five
2596 posts, joined 03/27/2011
quote:
What if I wanted last minute freebies?
cablinaggie
12:44p, 03/02/12
cablinaggie
3337 posts, joined 01/23/2007
quote:
Whatever you do, DO NOT USE KB.


This x eleventybillion.

They build a poor product, for any price range. Pre-fab walls, OSB stair treads, undersized A/C units, you name it. And god forbid if that neighborhood's sales go down, they WILL slap an even cheaper product in the same neighborhood to take down those lots, killing whatever equity you have in your home.

Avoid KB like the plague.
Lynch
9:26p, 03/04/12
Lynch
1263 posts, joined 02/13/2002
quote:
And god forbid if that neighborhood's sales go down, they WILL slap an even cheaper product in the same neighborhood to take down those lots


Pretty sure most big builders do this. It's the risk you take buying in a new subdivision.
Absolute
11:04a, 03/05/12
Absolute
3699 posts, joined 01/12/2008
As an inspector here are my opinions.

Definitely use a Realtor. No reason not to and they will help you greatly.

Check out JD Powers ranking on builders. I have found these to be pretty accurate compared to what I hear from clients.

I would stay far far away from KB. I find Horton in my area to be okay. I would consider them for at the entry type level price point.

The problem you run into is that there are limited choices in that range. Around here I would recommend looking into Drees or Horizon (Highland), not sure if they are in your area.
Lynch
8:53p, 03/05/12
Lynch
1263 posts, joined 02/13/2002
JD Powers doens't mean much, they pay for those scores. Get a realtor, check BBB or even one of your potential new neighbors.

Drees and Highland (even with their smaller product) is probably out of the first time buyer range (I assume, since he is looking at KB/Horton/centex, etc.)
RealtorMadison
7:23a, 03/06/12
RealtorMadison
397 posts, joined 01/31/2012
I have helped quite a few clients purchasing from builders ....in my experience we usually are able to negotiate upgrades and pricing quite a bit better than if my clients had not used me. A lot has to do with the fact that the buyers are not certain what to ask for and when...what's standard in a deal and what's not. Nearly every transaction my buyer tells me the price he would be happy paying and we almost always get it for less...so what that tells me is that the buyer may not realize what they are leaving on the table but at the end of the day you are happy with the price than that's all that matters. Perception is reality.

[This message has been edited by RealtorMadison (edited 3/6/2012 7:23a).]

[This message has been edited by RealtorMadison (edited 3/6/2012 7:24a).]
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