Im next door in Louisiana. We have some new construction houses thats been sitting for almost 400 days in my parish. They have all the upgrades includedand you get to pick out the sinks and handles. Then we have some lots to be built, new construction thats been sitting for over 400 days. Hoping to get a good deal this year and stack all these incentives with DPA assistance on top of my 20% down.🙏🏽.
In Arizona here with a smaller builder. Home is 650k new build. Asked for 26k in rate buy down and closing cost of about 11k. Is this unreasonable? Thank you. Love the channel. No buyer in contract and its at the plumbing and electrical phase with closing around end of May
No, I don’t think it’s unreasonable. It all comes down to the margins and if they can do it or not the challenge with a small builder as their margins tend to get tighter so you may not be able to get all of that that you’re asking for.
@@zakschmidt-DallasTXrealestate they accepted the 26k to buy down rate and a fridge. Not closing cost but we will wrap that in the loan. :) yes it is a small boutique builder as well.
If it was doing the math on that it would look like this 140,000/12 would be 11,665 gross. If we figure we want to keep all debts or debts plus housing under 45% monthly gross (11,665x.45) that gives us 5,250 per month. So here’s the assumptions I’m making. Property tax about 2.4% which is average for north tx. Insurance around 1800. 5.99% on an interest rate which is doable right now with the right builder incentives potentially. That would give us a purchase price of around 750k with a down payment of 150k. Or if you wanted the same scenario at 5% down it would drop purchasing power to around 620k but lower down payment to 31k. At 15% down instead of 20% it would push purchasing power to right about 700k. Biggest changes in that would be prop taxes, insurance, and what we get the interest rate to. Now if you wanted to move the debt/income ratio up or down that changes it too. But with that budget it opens up tons of options here in DFW. Ultimately comes down to your comfort level and desires. If you want to chat more in detail or see what that buys shoot me an email at hello@zakschmidt.com
@@John-vg6vg I dont have a list yet. Working on a database now. Challenge is so many different neighborhoods and communities they are all differnt. If you have some that you have in mind I can take a look and send them over to you
Is it possible to ask for more incentives after purchase contract is signed? I’m set to close May 2025 on a KB build to order and I need to get some more incentives for rate buy down! What is your pov on this? Thank you in advance :)
You can ask but it’s unlikely they say yes. The challenge is you see a better deal on something right now, but the builder can’t necessarily honor that deal because the deal you have on your contract but on the flipside, they wouldn’t come back to you and change your deal if your scenario was better than what was currently out there. So you can always ask, but the likelihood of them saying yes is slim. One potential you could look at is depending on how big the gap is in your appraisal price and your contract price you could raise the purchase price to add additional funds so let’s say. Purchase price 450k. Home appraises for 475k. You could ask the builder to raise your contract price by 15k and credit that money back to you for closing costs and still have the 10k in equity. But you also have to take into consideration the maximum allowable contribution based on your loan type. I would consult with your agent, lender, and sales rep for further clarity.
Man new construction is bad. I just got to know they are using thermo-ply sheathing instead of osb or plywood. So technically you are buying a cardboard house…😢
Great video! Keep making these content!
Im next door in Louisiana. We have some new construction houses thats been sitting for almost 400 days in my parish. They have all the upgrades includedand you get to pick out the sinks and handles. Then we have some lots to be built, new construction thats been sitting for over 400 days. Hoping to get a good deal this year and stack all these incentives with DPA assistance on top of my 20% down.🙏🏽.
1000000% recommend the pre-christmas, crazy, 30 day closing deals
In Arizona here with a smaller builder. Home is 650k new build. Asked for 26k in rate buy down and closing cost of about 11k. Is this unreasonable? Thank you. Love the channel. No buyer in contract and its at the plumbing and electrical phase with closing around end of May
No, I don’t think it’s unreasonable. It all comes down to the margins and if they can do it or not the challenge with a small builder as their margins tend to get tighter so you may not be able to get all of that that you’re asking for.
@@zakschmidt-DallasTXrealestate they accepted the 26k to buy down rate and a fridge. Not closing cost but we will wrap that in the loan. :) yes it is a small boutique builder as well.
What's up Zak, I love the channel. I am an agent in Colorado, would love to connect at some point, until then, cheers to a prosperous 2025
Sounds good man. Shoot me an email Zak@zakschmidt.com would love to connect
Just a question Zak. How much you suggest the cost of the house you can afford if the annual salary is 140k, no debt and can put 20% down?
If it was doing the math on that it would look like this
140,000/12 would be 11,665 gross. If we figure we want to keep all debts or debts plus housing under 45% monthly gross (11,665x.45) that gives us 5,250 per month.
So here’s the assumptions I’m making. Property tax about 2.4% which is average for north tx. Insurance around 1800. 5.99% on an interest rate which is doable right now with the right builder incentives potentially. That would give us a purchase price of around 750k with a down payment of 150k. Or if you wanted the same scenario at 5% down it would drop purchasing power to around 620k but lower down payment to 31k. At 15% down instead of 20% it would push purchasing power to right about 700k. Biggest changes in that would be prop taxes, insurance, and what we get the interest rate to.
Now if you wanted to move the debt/income ratio up or down that changes it too. But with that budget it opens up tons of options here in DFW. Ultimately comes down to your comfort level and desires. If you want to chat more in detail or see what that buys shoot me an email at hello@zakschmidt.com
whoa 45% is so high! thanks for your response though. Will definitely contact you once we are ready.
@ if you don't mind do you have a list or reference about the property tax in dallas texas?
@@John-vg6vg I dont have a list yet. Working on a database now. Challenge is so many different neighborhoods and communities they are all differnt. If you have some that you have in mind I can take a look and send them over to you
@@zakschmidt-DallasTXrealestate rockwall, davon, wylie, forney and mckinney, rowlett, fate. thank you!
Is it possible to ask for more incentives after purchase contract is signed? I’m set to close May 2025 on a KB build to order and I need to get some more incentives for rate buy down! What is your pov on this?
Thank you in advance :)
You can ask but it’s unlikely they say yes. The challenge is you see a better deal on something right now, but the builder can’t necessarily honor that deal because the deal you have on your contract but on the flipside, they wouldn’t come back to you and change your deal if your scenario was better than what was currently out there. So you can always ask, but the likelihood of them saying yes is slim. One potential you could look at is depending on how big the gap is in your appraisal price and your contract price you could raise the purchase price to add additional funds so let’s say.
Purchase price 450k. Home appraises for 475k. You could ask the builder to raise your contract price by 15k and credit that money back to you for closing costs and still have the 10k in equity. But you also have to take into consideration the maximum allowable contribution based on your loan type. I would consult with your agent, lender, and sales rep for further clarity.
Sometimes you work with Zak, and the builder rep promises things they aren't actually allowed to promise...
Hey, but not in a bad way they promised it we held them to it and you got it all
@zakschmidt-DallasTXrealestate definitely not in a bad way.
Man new construction is bad. I just got to know they are using thermo-ply sheathing instead of osb or plywood. So technically you are buying a cardboard house…😢