A football team would never go on the field without their quarterback.  Successful game plans and winning teams are led by proven quarterbacks.  A quarterback does not become proven by luck or happenstance.  It takes years of hard work and extra effort to become a leader in the NFL.  This also relates to how important it is to have a proven builder in place early in your building process can expedite your home building experience.

The Best

The best quarterbacks are those who spend hours studying films, reviewing game plans, practicing and tweaking plays so the entire team is ready for game day.  They spend extra time in the gym and seek out ways to continually learn and better their education.  They understand how all the various components of how a team fits together.  They realize that different techniques are required for the different player personalities to maximize each player’s peformance.

The best quarterbacks do not become that way from luck or talking big.  They develop from years of hard work, preparation, education and commitment.  When others are out partying, they are studying game plans.  When others are posing for the press, they are watching film. 

Professional quarterbacks are professionals when no one else is watching.

Building A Home Is Football

Building a home is much like a football game.  You have a team of professionals (contractors) who are good at what they do.  Each player is focused on their individual responsibilities without a global view of the project.   One bad play or small mistake can cost you the game so everyone has to be on their toes at all times.

The quarterback (builder) is the one who pulls the team together and leads them on and off the field.  Think back to the most successful football franchises and you will find the leadership of a strong quarterback with a proven work ethic is one of the common denominators.

Just as proven quarterback is imperative to a successful football team, a proven builder is the key to a successful home building experience.   A builder has an understanding of the strengths and weaknesses of team.  He knows how the field is stripped (town ordinances) and the officials (town staff).  Just like a quarterback, he can make decisions on the fly and can recover from a turnover (mistake).

Professional builders are professionals when no one else is watching.

Invest In The Best

The best general managers (football teams) know that to win they need a top tier quarterback.  Top tier quarterbacks cost more than the guy from the practice squad but they are also able to deliver when it counts.  These GMs learn how to blow away the smoke and look at what a quarterback can truly do to contribute to his team.  He knows that there will always be someone out there that will promise him a championship on the cheap but he knows that you get what you pay for.  Just as a quarterback can’t learn a team’s play book in a few days, a builder needs time to fully digest all the aspects of creating your family’s dream home.

With that in mind, it is disconcerting how many families will treat their builder as an afterthought.  They will spend years seeking out neighborhoods, stay up late at night looking at house plans on the internet and touring open houses.  They will hand over thousands of dollars to an architect and consult interior designers before they have a grasp of the costs.  However, when the time comes to start building they will wait until all the major decisions are made and then seek out a builder at the last possible minute. 

When you give your builder the time to properly prepare, he can lead your team to victory.  If you give him the resources to use proven professionals he can trust the entire lineup will be there to support his decisions.  If you trust his decisions, he can have the freedom to execute the game plan so he can bring your family home a big win.

Sweet Nothings

There will always be someone who will whisper sweet nothings in your ears and tell you what you want to hear.  They make big promises just to get the starting position. 

The reason the top tier quarterbacks get paid more than the rookies is they know what it takes to win and are willing to make the commitment.  You might get lucky with a rookie but when you are talking about the playoffs, wouldn’t you rather have a proven professional taking the snaps.

Work Together From The Start

Once you find your star player (builder), bring him (or her) into the process as early as possible.  The more time he has to contribute to your program (home) the more valuable he will be to your family.  His input in the design, selections, financing and lot choices will help your home building process run smoother and be less stressful.

 Thank You

I hope this helps illustrate the importance of picking a proven builder and incorporating him into the process as early as possible.  Your builder wants you to be successful, the more time and information he has to work with your family, the greater the likelihood of success.

If you have a question on how we can help you build a custom home, please feel free to email your questions to our offices.  Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex.  We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669 . I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients.  Or become a Facebook Fan.

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance.  If you know someone we can help, we welcome and honor your referrals. Ģ

Many times when I share my profession with someone, they immediately say “Oh, you build all those big homes”.  Although it is nice to be acknowledged for our work, it is frustrating that this common misconception keeps many families from enjoying the satisfaction of working with a small custom builder.

This misconception persists due to some realities that govern our industry.  Here are some of factors that are at work;

Lot Prices

The least expensive lots are often found in large master planned communities.  The economies of scale in these developments combined with selling the lots off very quickly allows for these lots to be sold for a low price.  Very few small builders have the ability to purchase hundreds of lots at a time.  Hence the large corporate (production) builders will often be the buyers and builders of the homes in these communities.

Lot Ratios

If a custom builder is not able to buy the least expensive sites, he must often buy in smaller communities with more expensive lot prices.  These more expensive lot prices have a multiplier effect on the type and size of home that can be built.

A home value/price is often dictated by the cost of the land it is built upon.  There are formulas on how the price of a lot should relate to the price of a home.  In North Texas, the ratio is about one to five.  This would mean that if you have a $100,000 lot your total home & lot should be priced at about $500,000 (20% lot cost is 20% of the total).

In addition to more expensive lot prices, these smaller communities often have more rigorous architectural standards.  These standards add to the cost of construction and require a builder to build a larger more expensive home to be compliant with the developer’s standards.

Creativity

 Smaller builders are often able to be much more creative on their homes as they are directly involved in the day to day construction of the home.  This is appealing for families who wish to design and build a custom home and they will often seek out small custom builders for large luxury homes.

  Homeowners Pick Where

 Often a small home builder is building on a site that a family has specifically selected.  These sites are seldom in large communities and often have unique features that require additional supervision.

 When a family seeks out a builder to build their home, they are usually looking to build their dream home.  These homes are often larger and more elaborate than a typical corporate built home. 

 Often when families go on home tours, they gravitate towards these types of communities and notice the small custom builders are the ones who build these homes.

 However

 A good builder can help your family build almost any size home.  Before settling for the local tract/production/corporate/mega-builder Goliath, reach out to your local custom building community.  You may be pleasantly surprised that you can get a custom home for about the same as it would cost to purchase cookie cutter home.

 Your extra effort could result in you working directly with a true building professional who can offer you more choices, enhanced quality and a whole different perspective on building your home.

 Thank You

I hope this helps remind you that small custom builders can accommodate the construction of almost any size home.  When considering who to build your next home, don’t discriminate against the small guy just because some of his projects are big.

If you have a question on how we can help you build a custom home, please feel free to email your questions to our offices.  Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex.  We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at               817-748-2669         817-748-2669. I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients.  Or become a Facebook Fan.

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance.  If you know someone we can help, we welcome and honor your referrals. Ģ

One of the hardest aspects of construction for home buyers to understand is how homes of similar size and room counts can have so many variances in their respective prices.

In one of my continuing education classes Steve Zbranek, our instructor, placed a very simple drawing on the board which helps illustrate the quandary homeowners face when reviewing pricing on their home.

Example

Please note the illustrations below.  They are not to scale but you can see the differences in the exterior dimensions of the two structures. 

Structure A measures 10’ x 10’ for a total size of 100 square feet in size.  This creates a total of 40 linear feet of wall space.

Structure B measures 2’ x 50’ and also has a total size of 100 square feet.  However it has 104 linear feet of walls.  This is over 2 1/2 times as much linear footage in walls than Structure A. 

If both of these structures are 8’ tall and were covered with bricks you would have approximately 1,600 bricks required to cover Structure A. However, even though Structure B is the same square footage in size, it will require over 2 ½ times as much brick (4,160 bricks) to cover Structure B’s exterior walls.

The Math

Assuming brick costs you $1 per brick (labor, material, brick costs, etc..), then Structure B will cost $2,560 more to have it covered in brick than Structure A.

This translates into an additional $25.60 per square foot of the structure for the additional brick.  Remember both structures have the same square footage.

Even if Structure A was 15’ tall and Structure B was still only 8’ tall, the numbers are still not equal.  It would require 3,000 brick to cover the 15’ walls of Structure A, which is still 1,160 bricks fewer than Structure B with 8’ walls.  Structure B will still cost an additional $1,160 or $11.60 per square foot.

This is why building higher can often cost less than building out (larger footprint) when designing and building a home.

Cost Variances

Brick is not the only costs associated with an exterior wall, there is framing lumber, carpenter labor, insulation, bracing, house wrap, windows, roof bracing, gutters, paint, siding and the like.  You will find that the variances we illustrated with brick will also hold same for these costs as well. 

Numbers Need Facts

We share these examples to help illustrate why comparing builders/homes on per square foot pricing is seldom an accurate reflection of the value and costs associated with each structure.  Designing and building a custom home is a very complex exercise and if some just throws you out a price without serious and detailed analysis of what you are hoping to accomplish, be prepared for surprises.  And I am not referring to the type of surprise that makes you smile.

When you interview a custom home builder, spend time on understanding how they work and guide your family through the process.  Their experience can help you understand how the design and layout of your home can create or save you on the costs of construction.

Real Life Example

One of the most illustrative examples I have shared with families is from two homes we built about 4 years ago.  They were both about 5,400 sqft in size and had very nice finish out.  However, due to the architecture, homeowner selections, floor plan and design elements, there was over $500,000 in price variance between the two homes.  This excludes the land costs.  That works out to $92 a square foot for homes of approximately the same size.

Small Changes Big Money

It can be frustrating for families to understand how small changes can affect the costs of their home.  Experienced builders will avoid giving you a firm price on your home until they have final plans, complete specifications and all the inclusions accounted for and priced out.

Small changes such as moving a wall, redesigning a roof or adding windows can add thousands to a home without ever changing the size of the home.  Even deleting some items can cost you more money, such as removing a wall that was designed to brace the roof.

Custom homes are very complex projects and although on paper a change or modification may seem simple, the reality can be much more involved.  Don’t become blinded by the price per square foot trap.  Give consideration to all aspects of the home, its amenities, location and design.

We were always taught that 2 + 2 = 4 but when building a new home sometimes 2 +2 = 9.

Thank You

I hope this has given you seemingly simple choices made early in the process can had significant costs to your home budget.  By working with your builder all the way through the process you will have opportunities to learn about these factors and make educated decisions.

If you have a question on how we can help you build a custom home, please feel free to email your questions to our offices.  Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex.  We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669. I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients.  Or become a Facebook Fan.

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance.  If you know someone we can help, we welcome and honor your referrals. Ģ

With spring approaching, the hunt for the perfect home lot is underway for most families.  This reminded me of an article I wrote a few years back on the pros and cons of selecting wooded lots over lots with few or no trees on them.

Now please don’t get me wrong, I love big trees as much as the next person and few things are more beautiful than a yard full of mature trees surrounding a luxurious Garabedian Home.  However, there are some hidden costs which should be considered when selecting a wooded lot to build upon.

Lot Premiums

It is commonly accepted that wooded lots are some of the most desirable properties.  Developers have added premiums to these lots when marketing them to builders/homeowners.  Frequently a wooded lot will have a $15,000 to $25,000 premium (or more) over sites with no trees.  Often families fall under the misconception that the lot premium is the only significant cost in selecting a wooded home site.  However the truth is much more complicated.

Hidden Costs

Building a home amongst trees can add costs and time to the construction process.  These costs can break out into three primary categories.

Code compliance is the first category and includes items such as; tree surveys, tree removal permits, code compliance, tree fencing and signage.  These items can add several thousands of dollars to the cost of construction all before anyone has started to work on your actual home.

Construction costs are the most visible factor that families will notice in this process.  These include; tree removal, stump & root removal, backfilling & compacting where the trees were removed, haul off & dump fees, trimming the remaining trees and additional tractor time.  Other costs include more expensive irrigation systems, adding retaining walls for drainage & tree protection and tree clean up/pruning. These costs can add up in to the tens of thousands of dollars in the blink of an eye.

Ongoing maintenance after the home is complete can add up as well. Regardless of how much care is taken during construction, trees can go into shock months or years later.  If treatments are unsuccessful in saving them, you will spend hundreds if not thousands to have the trees and stumps removed.  The remaining trees will require annual maintenance including trimming, pruning, lifting and supplements.  (Yes trees do need vitamins.)

Other costs include periodic clean up of your property.  These mature trees will often be in locations that may lead to their branches & leaves filling up your pool, ponds and gutters.  The cleanup is a year round process.

Alternative Choice

An alternative is to select a lot with fewer trees and then used your savings to have the landscaper place trees in locations that would compliment your property.  In addition to only paying for the trees you want, you would also be covered by the installers warranty if the trees went into shock after planting.  $35,000 could purchase dozens of mature trees that are covered by a warranty and installed where you want them. 

Conclusion

We do not want to talk you out of selecting a site that appeals to you, we do want to help give you an understanding on why your home may cost more to build on a heavily wooded site than a similar size home on a level clear lot.  Selecting a wooded lot can offer you a home site with character and charm, however, please understand your builder has to account for these additional costs mentioned above.

Thank You

I hope this has given you seemingly simple choices made early in the process can had significant costs to your home budget.  By working with your builder all the way through the process you will have opportunities to learn about these factors and make educated decisions.

If you have a question on how we can help you build a custom home, please feel free to email your questions to our offices.  Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex.  We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669. I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients.  Or become a Facebook Fan.

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance.  If you know someone we can help, we welcome and honor your referrals.

 Hidden Efforts

One of the lesser known aspects of this profession is how much time and energy a builder will invest behind the scenes to give a family answers to what are seemingly simple questions.

When you ask a builder a question he can make one of two choices;

1 – Throw out a number. 

Although this may satisfy your desire to know, the odds are it is not a very accurate cost as there are tens of thousands of variables in pricing out a home.  If a builder throws out a low number he risks angering you or wasting your time if the price rises dramatically as you proceed forward with the project.  If he throws out a high number, he risks alienating you and scaring you off when the reality is that with some more information the home may not have cost that much.  The builder is in a no win position.

2 – Take down the relevant information and conduct research on the options. 

This can be a very time consuming process as a builder must research a host of variables to come up with pricing on a new custom home.  Some of these ever changing variables include; material and labor costs (can change weekly), every building site has unique costs associated with the preparation and every city had different fees and requirements.

It may only take you 30 seconds to ask a builder a question but it could take him 5 hours (or longer) to get enough information to give you an educated answer.  Once he assembles this information he needs to convert it into a presentation format which can be interpreted by a homeowner.  This can add even more hours to the process.

Share Your Thoughts

Although it may take a builder 10 hours or more to prepare an answer to your question on building your home, it has shocked me how quickly families will come to a conclusion without fully absorbing all of the options.

For a majority of all families, a new home is the largest single purchase they will ever make.  To see someone make a decision of this magnitude in a few short minutes has always been perplexing to me.

I appreciate how circumstances change or you feel like the information being presented is not in line with your expectations.  However, instead of just shutting the builder down, give them an opportunity to hear your feedback and see if there are other options available. 

Homes have tens of thousands of variables in them and it is not possible or desirable to present every possible different configuration during a presentation to a homeowner.  Your feedback will give the builder direction on how to sift through the information to provide you alternatives.

One Call Means A Million

It may be after receiving the requested information; you feel a need to change direction.  That is understandable and does happen.  I would make one request (regardless of who you are working with), please take a few seconds and Return The Favor.  Give a courtesy call or return the call to the builder and let him or her know where you stand.  Return the favor of all of their hard work by giving them a call and letting them know where you stand in the process.

I would almost take a bullet for someone who returned professional courtesy to me EVEN if the answer was no.  That call shows they appreciated the time and effort I put in on their behalf. 

Thank You

In closing please be aware of the amount of work a builder will put in on your behalf often with no compensation is considerable.  Please give return the favor for his/her efforts by giving them feedback so they can better serve the community regardless of how you decide to proceed.

If you have a question on how we can help you build a custom home, please feel free to email your questions to our offices.  Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex.  We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669. I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients.  Or become a fan on Facebook.

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance.  If you know someone we can help, we welcome and honor your referrals.

Introduction to Garabedian Properties and the Garabedian Family

You don’t have to spend a million dollars to have a custom built home.  One of the most common misconceptions about custom home builders is that they only build expensive homes.  The reality is most custom homes cost much less than a million dollars.

 What is a custom home?

A custom home is when a family works with a builder to design the floor plan, select the site and designate the amenities and features of their new home based upon their own decisions and budget.

The plans can be designed from scratch or modifications of an existing plan.  The site selection can be in a neighborhood or a vacant site regardless if the builder owns the site or not.

Except for your budget, there is almost no limit to the features, colors, finishes, cabinets, flooring, etc… you can incorporate into your custom home.  There is no design center where you pick from 2 things on a wall.  You dream it, your builder builds it.

What does a custom home cost?

A custom home can cost $100,000 or $100,000,000.  The cost is a composite of the following factors; cost of the land (including preparation), the home size and the amenities & features of the home.

Which custom builder should I use?

The short answer is the one you can work with and trust.  Many custom builders are able to accommodate different styles and price points.  However, not all custom builders are able to manage their businesses as a business.  This is why you see so many builders go out of business after a few short years of building. 

Lowest bid has the most mistakes

In our industry there is an old adage, the lowest bidder is the one who made the most mistakes bidding your home.  This means you may decide to go with the lowest bid on building your home, however, the odds are you are going to pay for it one way or another in the coming years.

Find a custom builder who can accommodate your needs and desires while providing you a top notch home you can be proud to show to your friends and family.

Once you go custom….

Almost everyone who has built a custom home will tell you that once you go custom, you will not want to go back to buying a pre-owned (we call them used) or a tract home again.  Building a custom home will cost you a bit more, however, you are spending your money on the features that are important to you.  You will also enjoy the deep feeling of personal satisfaction of having conceptualized and building something from scratch that no one else (out of 6 billion + people on the planet) has.

Thank You

Custom does not mean spending a million dollars, custom means personalizing your families home so it meets your family’s needs and desires.  Make a list of what is important in your next home and visit with your area’s top custom builders.  You will quickly realize that building a custom home is much more obtainable than you had thought.

If you have a question on how we can help you build a custom home, please feel free to email your questions to our offices.  Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex.  We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669. I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients.  Or become a fan on Facebook.

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance.  If you know someone we can help, we welcome and honor your referrals.

This was post was inspired by a local Realtor and friend, Mark Pennington, who did a similar list for why you should list your home for sale in December.  This is our top ten reasons to act now on your new home building project or remodeling/addition project.

Reason #10 to act now on your home building or remodeling/addition project. Interest rates WILL go higher and could go dramatically higher as the current rates are at historic lows and inflationary pressures are building in the money supply.

Reason #9 to act now on your home building or remodeling/addition project.  Bankers won’t let builders start any speculative homes so if you don’t see something you like the only way you are going to get it is to start from scratch.

Reason #8 to act now on your home building or remodeling/addition project.  Banks are under increased pressure to book loans OTHER than to builders/developers.  This means making more loans to homeowners who want to remodel or build their own homes.  The programs they can offer today due to the very low interest rates may not be available once rates start to rise.

Reason #7 to act now on your home building or remodeling/addition project.  Over half of all builders and subcontractors have been forced out of business.  The experienced ones who are left are the first to be hired back.  So if you wait too long, then you may have to settle for less experienced builder/contractors building your home.

Reason #6 to act now on your home building or remodeling/addition project.  The Texas Residential Construction Commission has been disbanded so there is no governing agency to oversee builders in Texas.  Many builders who were barred from the industry and others who have little to no experience will be opening up shop once activity resumes in the industry.  Buyer beware has never been more important than now.

Reason #5 to act now on your home building or remodeling/addition project.  New federal regulations being proposed by the President and Congress will add even more regulatory costs to construction projects if passed.  Which means you will get more for your money now. 

Reason #4 to act now on your home building or remodeling/addition project.  Building from scratch takes time to work on plans, make selections, secure permits, etc…  With fewer proven builders in the market and more detailed loan applications, the delays may make it hard for your family to get the current low interest rates.

 Reason #3 to act now on your home building or remodeling/addition project.  The best building sites will go quickly and there are very few new subdividions in the works.  Acting quickly can help prevent you from having to “settle” on a community that was not one of your top choices.

Reason #2 to act now on your home building or remodeling/addition project.  Current construction techniques can save you on your utility bills while giving you space for your family that they have been clamoring for.  You know your wife wants to move forward and if momma is not happy, you won’t be happy.

Reason #1 to act now on your home building or remodeling/addition project.  You have to start at some point so why are you waiting for higher interest rates, higher costs, and fewer choice  lots to chose from?  Procrastination is not going to get you a new home or more living space.  Procrastination is not going to give you the features you have been dreaming of.  Action will!  Calling a trusted builder tonight and start your journey to your new home.

Thank You

If you have a question on the steps to move forward in the process, please feel free to email your questions to our offices.  Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex.  We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669. I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients.  Or become a fan on Facebook.

One of the largest hurdles families face in the search for a new home is what to do about the home they are currently living in.  We hope this three part series helps illustrate how trading a home can benefit a family.

The first of this series discusses the most common hurdles families face when seeking to move to a new home.  The second part discussed how a new home builder offering a Trade In Your Home program can help overcome these challenges.  This third part of the series will discuss how the steps of a trade program work.

Where to start

As not all builders are able or willing to trade homes, it would be wise to research which builders do offer this option and then review their program and available homes.  Once you have determined which builder, set a time to meet with him or her to discuss what you are seeking to accomplish.

What you will need to know

Your builder will want to know some information from you to do a preliminary evaluation.  Here is a list of some of the items you should know;

The address and a description of your home including the room count, lot size, square footages and special features. 

Condition of the major systems of the house such as your water heaters, appliances, heaters, air conditioners, roof, etc…

Disclosure of any items requiring attention such as leaks, foundation problems, etc…  Remember you are legally obligated to disclose such items and being upfront will minimize these issues becoming a problem later in the process.

Your asking price on what you would list your home for with a Realtor and what you would expect to sell it for.

He will also need to know how much do you owe on your home as well as if you have any other resources you are able to use for a down payment.

Please be upfront with your builder.  Every family I have worked with who has tried to be coy or not be upfront about their circumstances has had their trade fall through and they ended up not getting the house they wanted.  This must be a win-win to work.

Can I Negotiate

Yes you can negotiate; however, take a step back and look at the big picture.

You are asking the builder to pay top dollar for your home but you want to buy the new home for a discount.  The reality is the builder is doing you a favor in taking your home.  If the builder was going to discount his new home to sell it, he could do that and not have to bother with taking a used home in trade.

The net effect is that if you want the builder to give you a fair price for your home on a net basis, you will need to use his asking price as the benchmark.

Another reason this is important is the builder will need to utilize his proceeds from the sale of his new home to use as the down payment on your old home.  If he were to discount the price of the new home he may not have enough cash to move forward with the trade.

This has to be a win-win, if you are looking for a discounted price on a new home you will need to be ready to move forward without trading in your existing home.

The Evaluation

The builder will take your information and begin to research your home.

This will involve a host of different steps including; ordering a Comparative Market Analysis of your home, reviewing sales of similar homes in the area, physically inspecting your home, hiring a licensed inspector to inspect your home and other such similar items.  This will give him the information he needs to assign a trade value for your home.

Next Step

Once you and the builder have come to an understanding, contracts will be executed.  There will be two contracts, one for each transaction, which will both be contingent on the other contract being executed and closed.

The contracts will be delivered to the title company and the respective lenders.  Once the lenders have completed their paperwork a closing date will be finalized.

During this time the builder will proceed with his traditional new homeowner orientation and walk through on your new home.  He will also work to have his crews assemble resources for any needed repairs for your old home.

At Closing

On the closing day, all parties will meet at the title company and sign their respective papers.  As most families will want some time to move, it is very common for a short term lease to be executed on the traded in home allowing time for the family to move out and clean up the house.

While this transition is in place the builder will often begin to work on scheduling the repairs and marketing of the traded in home.

Thank You

During down markets, trading home is a great means of moving without taking the risks and hassles associated with attempting to sell your old home.  In a hot market, trading may offer a great means of being able to purchase the house you want before someone else beats you to it while you try to sell your old home. 

Either way, if you are considering a move, look at all your options including trading.  This concludes the three part series on trading in your home.  To see the entire series visit our blog.

If you have a question on how to a trade program works, please feel free to email your questions to our offices.  Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex.  We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669. I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients.  Or become a fan on Facebook.

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance.  If you know a family or client who may be in need of our services, we welcome and honor your referrals.