Builders release houses in phases. They do this to ensure they can fund the entire project. Buyers can leverage this by buying in early phases to see instant appreciation over time.
Builders are risk averse entities. They want solid buyers who can commit to spaces even before it is built.
How do builders convince buyers they will not run away with their money and build an incomplete house? They do so with their track record and reputation.
In the bay area, there are many household builder names to look out for.
Sometimes you can tell there is a smaller builder if you have never heard of them before, but other companies dominate the bay area.
Builder first scoop up vacant land that has the potential to be rezoned. Properties on large lots next to major streets tend to do well.
Once they finish this, they market their spaces to the public.
Realtors are an important factor in this as they regularly tour new home sites in order to share them with their clients.
Why is it important to bring your Realtor on your first visit? The reason is to get the representation. Realtors are different entities from the builder’s sales office. Because of this, they look out for the buyers’ needs better than the builder can.