In every market there are ways to save and make money. Even during the Dreat Depression there were people were making lots of money. So here we are in a market continually described as the worst housing market for several decades. If you have funds is there opportunity? Absolutely, you can look for foreclosure properties but to be honest buying foreclosure properties is a lot of work.
Another option if you are buying for yourself is to buy land and then build, this will save you substanial amounts for several reasons. first you save on transfer tax, you will pay this on the land price not the price of the house, consider that most new construction is three times the price of the land, for example if you pay $600,000 for a piece of land on the main line the house will generally be priced at $1.8 million or more. So you pay transfer tax on the $600,000 not the $1.8 million.
Secondly, builders have generally cut back and so they have workmen who need work, so you may be able to negotiate a good price for the building part of the contract as well.
Thirdly, you can incorporate green elements into the design of the home and working with an architect will also allow you to have the house you want without settling for a standard design.
So consider if there are lots available where you want to live, and whether this a an option for you in this current market.
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Those are 3 great reasons to buy new! Here in Virginia, we pay the transfer tax on the sales price...you're lucky!
Nancy we also pay on the sales price, but if you buy the land you pay your transfer tax on the land, then the building contract is outside of that, so no transfer tax is due as you own the land, nothing is being transferred.
Nick & Trudy , if the builder or affiliate company owns the land , you must be careful to sign/date the House Contract after the land closing, don't make the land contract contingent on house financing & also if you have an exclusive right to build on the property this can trigger transfer tax ! I've probably had 15 Audits for Transfer Tax (all okay for us) & have had to provide copies of all contracts , deeds , building permits , etc... so the State can verify the time-lines , Keepin' it Green !