How Much House Can I Afford?
Rob King: I am here with Matt Groff doing our normal lunchtime gig here, today I'd like to touch base on figuring out how much of a house I can buy. it's a question that a lot of people have, if you're moving down from a large metropolitan area in the Northeast or maybe the Midwest, you can get a lot for your money in South West Florida. Coming from a small town in Pennsylvania, maybe your perception is a little different, if I'm moving down here, if I'm here and look at it build a house, what's the best way for me to figure out how much I can really afford, a home-- what kind of house I can get?
Matt Groff: Basically, how we have always done our pricing, we offer too many choices, we have 25 customizable floor plans that we will offer and per square foot price, we don't usually set a set number, because we only account for what we need into that home, which means we're not overcharging, we’re specifically bidding our homes out for what it is going to cost to build that home. We are a turnkey builder, so, when the lot is brought into the equation, the prices that we give you take care of your permits, your building, impact fees, your water and sewer tie-ins and then everything down from the appliances, custom mirrors and even the garage floor gets painted and spackled. But we do a complete turnkey home and we do allow you to customize any features you want in there.
Rob King: Now, is it on my lot or do you have lots available, do I say hey Matt, I want a lot in this type or this side of town and go buy it on my own or you know people or you have lots available…?
Matt Groff: Absolutely, how we do that is a lot of folks have already own their own lot and the lot is the only variable in the equation, it can ever dictate a price to go up or down. And the reason we say that-- and again it is looking after our customers best interest, is if you are building on a half-acre, as opposed to a quarter-acre, then we're going to need additional sod, fiddle, sprinkler. So, instead of just setting a worst-case number for our price points, we will identify your lot and if you do not have lots, not only do I work with two of the largest wholesalers here in town, but I do also carry a real estate license, not to practice traditional real estate, but to simply find the available Lots at the best price points and also there are issues with wildlife, there's issues with mangroves if you're on water.
So, we will take those measures to make sure what you're purchasing is not going to get you in trouble. So, for instance, if you did come in with your own land, the pricing we give you will be on your lot and we will assess that lot to make sure nothing is going to go haywire, because when we commit to a price point for you, that is the last number you will see.
Rob King: And we got the cutest little burrowing owls here in Cape Coral, it’s-- I think one of the few places in the world that actually has and people come here and take pictures of them, you got to watch out for tourists in the middle of the road, just stop and then picturing, it crazy.
Matt Groff: Yes Rob, you got it all.
Rob King: Yes, there's all sorts of wonderful gopher turtles, all sorts of great things that might need moving or have taken refuge on your property here. Now, when having or building this house, I don't have cash, what do I got to do, like who do I talk to, do you have people for that too or is there loan opportunities for me?
Matt Groff: Absolutely, based on our track record, time in this business, of course our financial standings, we are currently approved with every local and national lender that offers new construction programs. Now, we are also one of the few builders that is VA approved, we have FHA construction, we have conventional, as little as 5% down, 10, 20 and if you came in with your own lot, which a lot of folks do come in from out of state that own their own land or locally, that is also something you can use as your down payment with all of these lenders as well…
Rob King: Oh, wow, that’s nice
Matt Groff: And then if you don't have-- if you come in with your own lender that offers new construction and I happen to not be approved, because there are lenders popping up daily, it is a very quick approval process and in my 17 years working for my father's company, we've never not been approved with a lender. So, it does not matter if you want your own financing, if you don't and based on what you're looking to build, price point wise, whether you're on your own land or not, I will find the right two or three lenders to provide you and then we want you to basically feel comfortable with the best interest rate, who can offer you the best terms and that is how we would proceed at that point.
Rob King: So, I make my decision after that and…
Matt Groff: Absolutely!
Rob King: … feel comfortable about my decision.
Matt Groff: Absolutely!
Rob King: I can't blame you is what you're trying to tell me.
Matt Groff: Absolutely, we do our-- we do we do a good job building the homes, but as far as the financing goes, I know enough to be dangerous, but I know enough to basically place you in the right direction and from there you will deal with those couple of lenders to find which one is going to fit your needs the best.
Rob King: Wonderful, wow! You’ve given me a lot of great information, thank you, I appreciate it and we'll talk next week.
Matt Groff: Sounds great, thank you guys!