New Construction Closeout Pricing Adjustment

[Andee]

Dealing with new construction, only 4 sales in my subdivision and 2 are within the GLA parameters, with none reported in MLS. Market is showing a downward shift in pricing according to MLS, but we all know this may not be correct, but have to go with the flow. Many of the sales in MLS are closing out a phase and the sales price has dropped an average of 7.8% just for these types of properties. Has anyone ever taken an adjustment for closeout pricing, to increase it based on this factor alone?

 

[glenn walker]

No it's speculation not closed prices.

 

[TerryRohrer]

Too many code words to decipher. What are "GLA parameters"? My MLS doesn't tell me anything; rather it is only a source of data. I have to develop my own opinions and that never factors in "the flow". And no, I would not likely adjust up as you propose.

 

[Andee]

What are "GLA parameters"? My MLS doesn't tell me anything; rather it is only a source of data. I have to develop my own opinions and that never factors in "the flow".

GLA Parameters - the range for the size of the properties I will consider for sales.

My MLS has a lot of information, however it does not take into account the properties for new sales that are never listed in MLS, which for new construction can be a lot. Some builders are really good about providing the information on MLS as a courtesy after they close, which helps a ton, but not all builders have figured this out and they like the phone calls, visits, and appraisers bothering them to get every ounce of information we need for a particular sale. But then again I'm in the Dallas/Fort Worth area and not Montana.

 

[glenn walker]

What If the rates drop and last sale goes up by 5% ?

 

[gregb]

What If the rates drop and last sale goes up by 5% ?

One sale does not make a market.

 

[jay trotta]

What If the rates drop and last sale goes up by 5% ?

Wait till you see your New "Insurance rates" - 5% may be a drop in the bucket. Plus, all your other increases, the vendetta cartel will cause everything else to increase. So now that there is no alternative health care, real Unemployment rates have Not been posted and if AI is taking over, where is everyone going to work?

In order for rates to drop, IMO- you would need to understand the damage created by the tariffs. What's the best way to sink a country????????

 

[J Grant]

Dealing with new construction, only 4 sales in my subdivision and 2 are within the GLA parameters, with none reported in MLS. Market is showing a downward shift in pricing according to MLS, but we all know this may not be correct, but have to go with the flow. Many of the sales in MLS are closing out a phase and the sales price has dropped an average of 7.8% just for these types of properties. Has anyone ever taken an adjustment for closeout pricing, to increase it based on this factor alone?

Is the general market of homes on MLS is showing a price decline for similar size houses,?

AND the builder had a price decrease to move the final units ?

They are two different reasons for a lower price - both reasons can be present at the same time of course - I am having a hard time from your post figuring it out.

 

[Bobby Bucks]

Is the closeout pricing only a factor for one specific builder/subdivision and not the market area or the neighborhood? Closeout pricing sounds like the flip side of lot premium and builder/DR Horton/Santa Claus concessions. New construction in some subdivisions is like investigating a crime scene to get the facts. I have seen some where they basically break even on the last sale in a subdivision just to close the gate or worst case they "bring a check" to the closing.

 

[Tom D]

You get to pick the market time line. Is it the county time line, the zip code time line, neighborhood time line or the competing sales time line. Then is it linear or none linear flucuating.

In a way the 1st and last development's house might be considered distressed, a quick sale. So are those sales normal. I might go further and back 1 year to find not the 1st or last houses having been sold at a discount. Location could keep the price high