Another factor to consider is that most builders advertise their base price, which could be anyway from 20-100+K less than what the final price will be.

So, if the flipper has added 100K in options, they will tack that onto the base price (plus their “profit”), but I would assume most new buyers would want to add their own options, thus ignoring the flipper property, & gravitating towards the builder’s lower base price (not realizing the true finished cost until their visit to the design center…)

All of which doesn’t bode well for the flipper – add in the incentives discussed and rate buydowns the builder can afford out of their 10-20+% profit margin, vs. the flippers 5-15% cost hit, and it gets ugly.

Also, many buyers of new construction ask for the brokers coop, or use a realtor who will provide a kickback/contribution, something the flipper can’t do unless their FSBO, which in this market would more time to sale, increasing carrying costs…