Following A Builder For Profits - An Example
By Raynor James, Fri Dec 9th

As the real estate market begins to calm down, many worry aboutmaking a profit on their homes. Here's an example of the "followthe builder" profit strategy.

Follow That Builder

In many areas of the country, there are builders who buildhundreds of houses each year within a fifty mile radius of eachother. They build entire communities, or are one of three tofive builders who build entire communities around big employmentcenters. This is important. Hang with me and you'll find out why.

Serendipity

The first couple I met who worked



the pattern I'm talking aboutdid it the first time almost by accident. They bought one of thefirst houses built in a neighborhood that took about two yearsto build out. Toward the end of the two year period, they wereout for a walk and, on impulse, went into a house underconstruction that represented a bit of a "move up" from theirhome. The same builder who had built their home was building it.

The couple went to the sales office of the builder and found outthat the house they'd walked through was already under contract.They were shocked to find out the price was $150,000 more thanthey'd paid for their home! The house was a little larger, butnot enough to account for the difference. In fact, they foundout their home had increased $100,000 in value.

A Repeatable Pattern

Builders usually have bright, attractive, cheerful, enthusiasticpeople on their sales forces. These people often have a wealthof knowledge. They know (or can usually find out) whichcommunities the builder has built in, is building in, and maybeeven where they're going from there. They know a lot about thepattern of price increases for various models. They have someidea of the speed of build out.

It's also possible to take walks in a builder's neighborhoodsand ask people how that builder is to work with, if constructionand "punch list" completion are done reasonably and well, and ifthey'd choose that same builder again under similarcircumstances.

If all the information you develop is favorable, you can startto "follow that builder." Builders usually sell the first fewhouses in a neighborhood for less money than any of the homessubsequently built. They're contracted for before the streetsand amenities are complete, and it takes a lot more imaginationto see a charming, pleasant neighborhood where now there's onlymud and bulldozers.

Follow the builder is a strategy that has been used. If you likea particular builder, you can use the strategy to put seriousmoney in your pocket.

About the author:Raynor James is with the FSBO site -http://www.fsboamerica.org -FSBO homes For Sale By Owner. Visit our home buying page -http://www.fsboamerica.org/buyer.cfm - to view and buy homes,houses, condos, land and real estate.

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