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Lumber & Building Prices Skyrocketing-
Causing Chaos with New Home Construction



Tips How To Buy a New Construction Home
My New Home Playlist!

Lumber Prices causing chaos?...... 

 
I received a call from one of my New Construction homebuyers last week, and they weren’t happy! 
After looking for months to find them a home in their price tight price range, months of education how to buy in this HOT crazy sellers market,  we found the ideal home in a New Construction community! This was “The One”!! 
 
She was already registered with me as her representative, so she went in and sat down with the builders rep and ironed out the details and got the pricing.. Everything was perfect! 
 
My client couldn’t reach her husband at work that day to tell him the awesome news, so that following Monday they both went back to see the model together and to sign their paperwork. 
 
That’s when they were told the price the of home was now $12,000 more than the wife was quoted just a few days before.
   
Because they were at the very top of their price limit, they no longer qualified for the new loan amount.  
My clients were livid! And that when my phone blew up! ....
All I was hearing through the crying and yelling was: what a greedy liar the builder was, and how could they tell them one price one day and  another increased price 2 days later?, and why are they doing this to them? And what am I doing to do about it! 

Now , before you jump to conclusions how this story ends, I will tell you this: 
The reasons why this happened to my homebuyers had absolutely nothing to do with the integrity of the builder. And this whole ugly scene could have been prevented. 

Most people are unaware of the crippling effects 2020 had on New Home Construction.  
What the public sees is a lot of affordable, new communities popping up in abundance again. The last time we saw this was in the 2006 era. And because of the low inventory of exsisting homes on the market in a median price range, New Construction is an awesome answer to the shortage! Builders are barely keeping up. 

But what the public does not see is what is going on behind the construction scenes. 
For one: There is a shortage of sub-contractors and consistent skilled labor.  
When the great recession hit 10 years ago, many subcontractors lost their businesses and was forced to go in other directions to make a living.  
And the small number of those that are in the business are often individuals or small family owned businesses that cannot meet the Covid safety guidelines and keep skilled labor.  

But even this is not the biggest reason why New Construction builders are struggling right now. 

The biggest thing that has blind sided builders is the sudden dramatic increase in lumber prices. 
We’re not talking a few hundred dollars.. There has been a 130% increase in lumber costs alone!  and it’s sporactic pricing too. 
 

Through 2020, Builders have done a great job of trying not to pass these increased costs to the buyer.  
But it got worse! Now the price of concrete has skyrocketed, along with the cost of drywall and a list of other building materials. 
You’re probably wanting to know why the price of lumber and essential building material has gotten so out of control. 
If you’d like to have that conversation, I’d love to talk to you..you can find my contact information in the description. I might even do an entire video on the subject.. 

To further add to the pressure builders are under right now, some new homes are not appraising at loan value.  
*When a buyer is financing their new home, the lender will order an appraisal by a licensed appraiser. These appraisers have to use comparables.. But the problem is the exact new construction home that was built and appraised 4 months ago compared to one built today that costs $20,000 more to build. There s an ongoing dispute of value now.. 

So you see, there’s a lot going on that most of the public is unaware of. 
Because of the craziness of 2020, it’s inevitable that the builders cannot absorb these monumental material increases and have no choice but to pass the costs onto the buyers. 

If they did not, obviously some would go out of buisness. But the bigger picture is, this is enabling the builders to continue to meet the pent up demand for affordable housing..  
And in turn the economy grows stronger, and continues Americans to grow their financial stability and wealth through homeownership. 

Now All that being said; 
It’s important to know, that the planned, New Construction developments are corporate owned and decisions are made across the board. Although the builders reps are told there ‘may be’ a price adjustment coming during a window of time..Often times, the local builders reps are in the dark as to new pricing amounts until the official word is handed down.  

So back to the story: 
We eventually got this couple in the home and they are extremely happy now.. But all of this could have been avoided had they truly believed what they were being told all along... 
Folks, Please listen! We are in unchartered waters here and this real estate market is beyond anything  I’ve seen in my 20+ years! 

What I’m about to tell you is an absolute MUST.. No gray area here!  
When buying a New Construction Home (or any other home really) and you get the “This is the ONE” feeling.

DO NOT hestitate for one second!
  
Do what you need to do to take that home off the market and under contract for purchase. Things are changing at lightening speeds these days.  
Any slight hesitation will result in a missed opportunity.
 
We live in an age of electronic signatures and virtual showings. There is no excuses to take the necessary action to seize your ideal home. EVEN if you have to sell your current home first! 

If you’d like to learn more about how to make smart decisions when buying a New Construction Home, especially when you currently own a house you’d need to sell first.. 

Check Out a playlist I made for you...And as always, if you just want to chat, youll find all my contact information below. 
I’m Lisa Kelly, and until then, I’ll see you on the next one. 




 
 

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What my clients are saying  

My experience while purchasing my first home was the best experience I've ever experienced. With Lisa's guidance it was a stress free experience. She made sure I was comfortable and understood every step. She gave her opinion from the heart. You can tell she genuinely wanted you to have the home you desired. She is very personable and that's great when you are purchasing a large investment. I am forever grateful of her help. So if you are looking to have a wonderful experience while purchasing or selling any property Lisa Kelly Realtor is the way to go.

 

~ Candace Engram

Candace Engram ????? 18 weeks ago My experience while purchasing my first home was the best experience I've ever experienced. With Lisa's guidance it was a stress free experience. She made sure I was comfortable and understood every step. She gave her opinion from the heart. You can tell she genuinely wanted you to have the home you desired. She is very personable and that's great when you are purchasing a large investment. I am forever grateful of her help. So if you are looking to have a wonderful experience while purchasing or selling any property Lisa Kelly Realtor is the way to go.

 

~ Candace Engram

Greg Raymond ????? 43 weeks ago Finding and buying the right house can be a difficult and daunting process. When my wife and I found our home online, we needed someone local to the property to assist us as we were out of state. Lisa came recommended by a local acquaintance and she was quick to respond to our call. She was collaborative and professional throughout the process, and was attentive to our needs and questions through closing. I would certainly recommend her!

 

~ Greg Raymond

I had such a positive experience working with Lisa. Not only is she a complete professional, but such a compassionate human being. Her knowledge guiding me through the Florida real estate process was so helpful as a first-time Florida homebuyer. She was always prompt and responsive while going above and beyond. She attended all key inspections in person and kept me informed throughout the entire process. If you are looking for a great real estate experience, look no further. Lisa is your gal to get the job done. I will definitely be working with her again in the future.

 

~ DJ Bradley

I had such a positive experience working with Lisa. Not only is she a complete professional, but such a compassionate human being. Her knowledge guiding me through the Florida real estate process was so helpful as a first-time Florida homebuyer. She was always prompt and responsive while going above and beyond. She attended all key inspections in person and kept me informed throughout the entire process. If you are looking for a great real estate experience, look no further. Lisa is your gal to get the job done. I will definitely be working with her again in the future.

 

~ DJ Bradley

We can’t say enough good things about Lisa Kelly! From the moment she stepped through our front door, she demonstrated all the characteristics you want in your realtor: integrity, friendliness, optimism, thorough knowledge of her field, state-of-the-art technical savvy, unflagging energy and sensitivity to all our own needs and feelings. Our house sold in four days and we are certain this success was largely due to Lisa’s skill and hard work. We highly recommend Lisa Kelly to anyone looking for a top notch realtor!

 

~ Tom and Kim Manske

We can’t say enough good things about Lisa Kelly! From the moment she stepped through our front door, she demonstrated all the characteristics you want in your realtor: integrity, friendliness, optimism, thorough knowledge of her field, state-of-the-art technical savvy, unflagging energy and sensitivity to all our own needs and feelings. Our house sold in four days and we are certain this success was largely due to Lisa’s skill and hard work. We highly recommend Lisa Kelly to anyone looking for a top notch realtor!

 

~ Kim Manske

Kim Manske ?????Aug 21, 2020 We can’t say enough good things about Lisa Kelly! From the moment she stepped through our front door, she demonstrated all the characteristics you want in your realtor: integrity, friendliness, optimism, thorough knowledge of her field, state-of-the-art technical savvy, unflagging energy and sensitivity to all our own needs and feelings. Our house sold in four days and we are certain this success was largely due to Lisa’s skill and hard work. We highly recommend Lisa Kelly to anyone looking for a top notch realtor!

 

~ Joanna Grizzard

Sidney Wyland Lisa Kelly was our realtor that helped us with our move from Utah to Lakeland. She is a very good resource for us in Lakeland and helped us buy our new home. We found Lisa on the internet. She has helped us with all the contacts and scheduling to insure all things here went smoothly. The closing on our home was completed on time which was very important as we had are household goods being delivered from two different states. She also continues to be there for us for any referrals or help we may need here locally. I would highly recommend her to anyone buying a home.

 

~ Rick and Sidney Wyland

Just wanted to thank Lisa for a job well done. I worked with Lisa on 2 of our homes this past year. We sold one in June and another late in the year. Everything went smooth and all details were handled in a very professional manor. Thanks again Lisa; nice working with you. Lee Brown

 

~ Lee and Frankie Brown

We had been looking for a new home for about three months. We changed Realtors and began working with Lisa. She showed us a couple of places. We talked about limits on price and location. We looked again on a couple. We did not care for those. She emailed us about a home that was being restored for a flip. We met her at our current home. We liked the location and made an offer which was accepted. She did a great job getting the seller to accept and a wonderful job from there. The closing took about fifteen minutes. We have been very happy from that day on. Patricia and Bill Crabb

 

~ Bill and Patricia Crabb

We had been looking for a new home for about three months. We changed Realtors and began working with Lisa. She showed us a couple of places. We talked about limits on price and location. We looked again on a couple. We did not care for those. She emailed us about a home that was being restored for a flip. We met her at our current home. We liked the location and made an offer which was accepted. She did a great job getting the seller to accept and a wonderful job from there. The closing took about fifteen minutes. We have been very happy from that day on. Patricia and Bill Crabb

 

~ Bill & Patricia Crabb

Just wanted to thank Lisa for a job well done. I worked with Lisa on 2 of our homes this past year. We sold one in June and another late in the year. Everything went smooth and all details were handled in a very professional manor. Thanks again Lisa; nice working with you. Lee Brown

 

~ Lee & Frankie Brown

01/03/2017 - shunter317 Bought a Single Family home in 2016 for approximately $175K in Lakeland, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: Lisa is an exceptional agent as she knows real estate law and the local market. She communicates and is extremely responsive to her clients questions and needs. She walked us through a complicated contract. We consider Lisa a new friend.

 

~ What Others Had to say

Highly likely to recommend 08/09/2016 - HappyBuyerNEOH Bought a Single Family home in 2016 for approximately $225K in Lakeland, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: I highly recommend Lisa Kelly! She was awesome to work with through the whole process. Her communication and promptness went above and beyond my expectations. Working in the mortgage industry, I see all types of realtors, if you want a genuine, awesome, go getter- she is your girl!

 

~ What Others had to say

Highly likely to recommend 10/27/2014 - jessbparker Bought a Single Family home in 2014 for approximately $75K in Auburndale, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: I cannot say enough about Lisa Kelly. She helped my husband and I buy our first home when we had limited funds and difficult circumstances. She is extremely knowledgeable about homes, market, taxes- anything you could want to know. She is also an excellent advocate for her clients during negotiations, which really came in handy when you're a nervous first-time home buyer.Less

 

~ What others had to say

Highly likely to recommend 02/22/2014 - par167 Bought a home in 2014. Local knowledge: Process expertise: Responsiveness: Negotiation skills: Lisa Kelly is the hardest working woman I know! If you are in the market to buy or sell take it from my personal experience she delivers results!In Polk County or anywhere else for that matter you will be hard pressed to ever get better service. Paul Renner.....

 

~ What others had to say

Highly likely to recommend 02/25/2012 - user027478 Bought and sold a Single Family home in 2011 for approximately $275K in Lakeland, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: Lisa is the most professional realtor I've ever worked with... she's direct, honest, highly-knowledgable, very responsive and a consummate professional. She played fundamentally important roles in helping us to sell our house in a tough market. She's a hard worker and also gave us great advice and we were able to sell after listing for about 30 days. She then helped us find and close on our dream home. Her persistance and negotiating savvy helped us buy a house that was not a very convential listing. If we'd had an average realtor, we'd have been a lot less successful with both our deals. I'd recommend Lisa to anyone who wants to work with a genuine professional. She could write a book on what it takes to be an outstanding service provider.

 

~ What others had to say

02/09/2012 - Alyson7707 Bought a Single Family home in 2009 for approximately $125K in Bartow, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: We absolutely loved our experience with Lisa.. She is incredibly knowledgeable and dedicated to finding the home of your dreams. We couldn't be happier with the home she found us or the time we spent with her--she made the experience exciting and easy. We do not hesitate to recommend her to friends and family and will absolutely work with her in the future. Thanks again Lisa! -Michael & Alyson Elrod

 

~ what others had to say

Highly likely to recommend 02/08/2012 - AimeeWeed Bought a Single Family home in 2010 for approximately $100K in Auburndale, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: Lisa was always quick to respond to my questions. I honestly think that my family and I would not be in this wonderful house without her hard work. She is honest, not afraid to give her opinion in a helpful way, and she is very knowledgeable in all aspects of her job.

 

~ what others had to say

Wonderful wonderful experience. Lisa is what I call a dream maker. I had the dream, and she made it a reality.Lisa's hard work, her quick response, her compassion in knowing I was a single mom purchasing my first house, has earned my loyalty in using her as my realtor for life.

 

~ what others had to say

Highly likely to recommend 03/09/2011 - reedswife11 Bought and sold a Single Family home in 2011 for approximately $75K in Lakeland, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: This woman is amazing, we have run into every road block imaginable and she has negotiated our problems quickly and effectivly everytime. Always available and Always puts her clients first

 

~ what others had to say

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