Offering a Few Takeaways from the 2024 Builder Panel: Is a New Build for You?

With the continuing high prices for resale homes and interest rates between 6.5% and 7%, many of my clients have considered purchasing a new build instead of a resale home.

Every year I attend the Builder Panel Lunch sponsored by the Builder Realty Council. Each year’s agenda varies from overall builder issues to concerns about the new and passing trends. These lunch panels are a wonderful place to learn and eavesdrop, so I can report back to you.

In 2023 I wrote about some issues/changes to the builder world, including:

– Builders were working hard to offer creative mortgage products while fighting 8% interest.

– The “home product” needed to be revamped with higher density homes on smaller lots, including building homes without a basement.

– Apartment complexes were being considered and introduced as a way to generate positive cash flow from rentals.

– Builders were eliminating gas appliances and heating systems.

Fast Forward to 2024

I just attended this year’s Builder Panel Lunch, and this year’s builder representatives are developing communities in Aurora and north of Denver.

Here are a few key takeaways from my ears to yours:

– 88% of homes being built in the area could face water issues that need to be resolved. Builders are urging the creation of metropolitan water districts with special improvement districts.

– A development issue all the panel members offered included the time it took to complete development approval and design phasing. And there’s a lack of funding needed to help in the development costs with their local and government partners. They particularly discussed the cost of roads and infrastructure.

– They also mentioned that large land buyers are buying up much of the available land, and this limits potential opportunities for other developers. Competition is key!

– It’s currently difficult to balance financing and building costs with customer expectations. New build customers want the feel of a custom community in a development setting. One example was “niche design” for a home vs. standard floor templates and designs.

– Homebuyers want the ability to walk to coffee shops that are not a chain like Starbucks. And that extends to parks, open spaces, and other amenities for families. One developer is investigating the type of artificial turf to install on a ballpark. Another developer is working on building a butterfly pavilion experience. And yet another developer wants the convenience of garden paths that allow residents to remain in their community.

– We also heard about a desire to develop a mix of building types (i.e. multi-family, condos, rentals, etc.) in the current development plan.

For me as your realtor, I did not hear the type of remarks presented a few years ago, in the height of the home buying frenzy. Builders could do everything with no realtor needed. These builders on the panel seemed to appreciate the work we do with a new home buyer and were not discussing cutting our compensation substantially.

I will never forget that a few years ago I had a long-time client ask if I could compete with a new builder who offered to sell their home for almost zero payment. I could not.

I am very happy to research and do the footwork for a client who is thinking about a new build. My role is to make sure your home is well built and that you are not overcharged. You shouldn’t have to pay exorbitant costs for add ons or upgrades. We work for you before, during, and after you move into your new home. And I am delighted to help you!