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New Home Pricing - Starting from $250,000

Several years ago, I wrote an article entitled Understanding Base Model Pricing. This morning I referred to it once again in a meeting with a new Buyer Client. The questions about new home pricing always comes up when talking about new construction and this article was my attempt to explain how new home pricing works.

You see the ad and it says Starting in the high $200s. Then you discover that the Base Model Price is $299,999 and that does not include the elegant features and gourmet kitchen you just saw at the Model Home. You might ask Why dont they build a Base Model home so I can see what I could buy for $299,999. When I have asked Builders that question they always reply Because there would be no WOW factor. Remember, the purpose of a model home is to show you all the possibilities and to get you excited about what you can do with your new home.

There are times when a Builder will have a standard model or spec home available for sale but in my experience it is rare. You just need to understand what you are seeing and look beyond the fancy dcor to ask yourself What is it you want in your new home?. Do you like the neighborhood? How about the location? We have been through this so many times with different clients that we can help you every step of the way.

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