New Homes in Reno

From extreme demand that reached "raffle ticket" proportions just to get in, to multi-thousand decreases every quarter -- what's going on with new homes?

It started with this thought: "Why are people still buying new homes in spite of the windfall prices of short sales and foreclosures?"

I went to Lennar, the remaining giant in new homes in Northern Nevada and soon I discovered that there were still a healthy number of home buyers who wanted a brand new home. Normal thought would be "why?", but they're out there looking for the best deals, usually snatching it from the standing inventory.

My goal is to give you a comparison tool on new and previously owned homes. I believe this is the first wbsite in Reno that does this (sorry, I couldn't resist.)

THINGS TO KNOW ABOUT NEW HOMES:

1.Short sales and foreclosures can go as low as $65/square foot,(depending on condition). The average price would roughly be $85/ Sq. Ft. for resales. While new homes typically sell for $105/Sq. ft. -- a difference of about $20 give or take.

2.Reno Real Estate Median Price Per Square Foot

3.After talking to the manager of Lennar's new homes division, I've found out that each community has varying threshholds for giving deals -- from taking chunk from the purchase price to giving full upgrades. Some communities routinely sell two or more homes per month, which is above average, while some are not as lucky, which gives them more room to negotiate. Try to get as much information before making an offer. For popular communities, don't be surprised when your low ball offer gets rejected. Be nice, and negotiate on upgrades if lowering the purchase price ($10,000 or more) encounters resistance. One agent told me that they try to protect the appraisal price of the community as much as they can.

4.People seem to think that they can get a better deal when they don't bring an agent with them. Not really. From my experience, it's the opposite but try to get an agent that has previous experience selling a home in your desired community. It makes a difference.

5.Oh yes, brands do make a difference. In the homes I've toured, a Lennar home will outperform a Centex or even a KB. But in most cases, it is also more expensive. Weight the pros and cons.

6.Reno New Homes Prices Decline (2006-2011)