How strong is the Pre Construction game now?

[Christian Roberts]

Hey guys,

I have been reading alot lately about pre construction phases, and I was wondering how hot the market is? I have been speaking to a realtor in my area which is bucks county or Greater Phila region and he says we have dropped 5-10 percent. The one thing thou is I am watching this love hate relationship I have with cookie cutter homes, and yet there gorgeous houses. I respect some of these builders like Pulte, DeLuca, and toll brothers. Well to get to my point it seems if I can get a mortgage I could own my dream house in stage one for cheap and still keep looking for investments without the d/i ratio draining my fun in life.

So my questions without the rant

Whats the typical kick back for phase 1?

How soon do you have to get in, is it when they put signs up saying comming soon, or sooner than that?

Is this trend becoming less lucrative and more restricted in terms of getting deals?

I mean I see heritage homes that are 5-10 yrs old going for 449k and a new builder across town is selling his same style for 380k. Which is just another tid bit I saw nothing to do with topic above we just sell sfh homes around 2-3k square feet like hot cakes. It just seems the new builders are selling their inventory quick, while the private guys are struggling around here! Hence my questions.

Chris