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Buying from a home builder

We are looking to buy a new home soon. In our area, there are a few homes being built that we are very interested in. We cannot buy a home until ours sells. Do home builders typically accept contingency contracts? Do they every negotiate their prices?  Thank you!
  • January 07 2014 - Midland
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Answers (5)

Profile picture for user3693455
Thank you all for your answers. I should have mentioned that the houses we are interested in are already being built and all, but one, are near completion. I did speak with a buyer's agent who works specifically with one of the home builders. She couldn't guarantee that he'd accept a contingency contract, but felt it was possible. 
  • January 07 2014
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Profile picture for USMortgageRanger
Congratulations on the decision to purchase a new home. While its very hard to decide how a builder will react to a contract contingent on the sale of your existing home. I would advice you to get approved with a lender 1st then find a good Realtor who will be in-charge of selling your home and for a small fee based upon the agent negotiating  the purchase agreement with the builder. Keep in mind that the builder will take an average of 4-6 months to build a specific home vs one that they just throw up dozen of homes that all look and feel the same. This will give you enough time to dispose of the current home. Good luck
  • January 07 2014
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Profile picture for craigfial
There are a lot of unknowns and I highly recommend you have an agent representing your interests with the builders.  It does not cost you anything and the builders will not discount your purchase if you don't have an agent.  It's just more profit for them.
as mentioned below. every builder is different.  a lot depends on the market in your area.  If it's on fire, then you will not get much movement.  If new homes are lingering, you have a better chance on getting what you want.

Good luck!
  • January 07 2014
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Builders will typically accept a pre approval letter with a contingency.  The builders I am familiar with will not start building the new home until your current property closes.
  • January 07 2014
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Hello user3693455,

Every builder is different, but I've seen different builders do both of the things you're asking about.  Most of the time, when it comes to the price, they may not budge on the purchase price but will add a bunch of incentives to "add value" to the home for you.  It's absolutely worth pursuing, the worst they'll tell you is no! 


Hope this helps!


Thanks,
Aaron
  • January 07 2014
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