So we talked about how builders are changing the game in new construction. There used to be a time where buyers assumed that they didn't need a Realtor to purchase a new construction home. Buyers walk in the model home, they fall in love, they sign the contract and they pick the lot they want. Everything goes smoothly, but nowadays builders have completely changed that process.

Let's talk about why they changed that process. The price of lumber is going up, builders need more money to build a house now . The second reason is the high demand with the inventory still being low and the demand being up of buyers, the demand is there for new construction to charge whatever they want for that new build.

So here's what most of New Construction Builders are doing:

1. They are doing what was called a lottery pick. So what is a lottery pick? When there's two or more buyers, a builder will essentially have that buyer submit their contract, submit their loan application. Then the builder will essentially like a draft pick for a sports team would then essentially go through all the candidates and see which candidate fits them best. Which means a lottery pick, draft pick, are the same thing where they will basically take their credit scores, how much money they have and figure out which criteria they meet in order to pick which buyer they want to go with. Don't ask me how they are doing it but that’s what they are doing here in Florida.
2. They're also doing the highest and best on new construction offers. So what that means for a buyer.  You will go in and submit a contract for the offer that you want to submit for that property. Whether it be the lot or the process already started. You submitted an  offer for the highest and best that you are willing to pay for that properly. If two or more buyers are interested in a property, they’re going to have the highest and best offer so whoever comes on the top and can still fulfill that loan is going to get that property.
3. The third and final thing that they're doing is they only send out so many lots to be for sale. So for instance, in the month of July, most builders will only have 2-3 lots that they put out that’s for sale. So if you don't catch that sale when they put it out and someone beats you to the punch and it goes on a contract, you have to wait until the next month when they put out more lots. So they don't put out all the lots like they used to. They used to put out a block of lots that a person can purchase but nowadays only put up to 2-3 lots per month and then you have to go in and submit your contact for that lot.

These are major things that builders have changed the game on and that's why it is super important, it's absolutely imperative that you have a Realtor with you. So the rules now are changing. You need someone to represent you. I love all my site managers but they work for the builder. You don't have anybody working for you. I will also say that having a Real Estate Professional is absolutely free to you. They also protect your interests and make sure that the contract is what it says it is going to be. So you do not go on blind and not understand how builders have changed the game. You have a Real Estate Professional who's going with you, who knows the rules of the game and you can play by those rules.