Denver Homes Online

They Avoided A $2000 Mistake At Their New Home Closing

Ken & Amber Didn’t Leave Any
Money On The Table

Ken and Amber were ready to buy a brand-spanking new home after relocating to the Denver from Virginia.  After finding the right location and builder, we started negotiations. The price and interest rate were good and we got some nice landscaping extras, but the best part of the deal was the additional $7000 negotiated towards buyers closing costs. 

Prior to a new home closing, its a little hard to know "exactly" what the buyers closing costs will be.  The uncertainties with many builders over the exact completion date of the house are always up in the air.  Weeks before our closing occurred, the builder’s lender worked-up final figures.  The costs now looked like they'd be approximately $2000 LESS than what we were expecting. This was sort of good news to the builder, because they would have that much less to pay towards buyers costs.

Financing rules prohibited Ken and Amber from pocketing any money they didn’t put into the transaction, so it looked like the builder would keep almost $2000 from what they originally agreed to put on the table for costs.  After my discussion with the builders lender though, I instructed the lender to apply the remaining $2000 towards Ken & Amber's pre-paids.

I suggested the lender contribute that $2000 towards future "homeowner association dues", which can be paid in advance.  Without any limit on how much of the homeowners dues could be paid in advance, we were able to get the builder to pay the entire $7000 of buyer costs as originally agreed.  Ken and Amber are now enjoying their gorgeous new home in Castle Rock, and they won’t have any homeowners dues - for at least a few years.  

Home builders are always look for ways to maximize profits.  Buyers who aren't careful can leave money on the table for the builder to keep.

If you know someone who sounds a little bit like Ken and Amber, and wants to buy a new home, I'd like to talk to them.  I'd rather invest my time with someone you know, rather than someone I don't.  Your referrals are appreciated! 

Michael Dagner is an expert in Denver-Area home sales.
Call today, (303) 514-4000, for help with your home sale or purchase.

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Copyright © 2012 Michael Dagner *They Avoided A $2000 Mistake At Their New Home Closing*

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