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Can you negotiate price on a newly built home?

We are looking at a brand new subdivision & are wondering if there's much negotiation with a home that will be finished summer 2011
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April 27 2011 - Nashville
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Answers (9)

It is easier to negotiate on a home that has already been built. In this market the builder may be in a position where they will need to cut their losses and get rid of it, especially if it has been sitting there for a while.

If you are negotiating on a home that's going to be built be cautious; some builders who do not have as much integrity will cut corners in the construction process to get back the profits you took from the negotiations.
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April 28 2011
Yes I believe everything is negotiable. In most real estate markets new housing has been on a steady decline. 
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April 28 2011
Yes - absolutely!

Builders are negotiating however thier preference is to give you closing cost and upgrade concessions. This way they don't erode the value of the home you are trying to buy as each new buyer comes in and chips away at the price. I'm finding that savvy builders are padding their pricing to allow all buyers to get a little something off the price and some other concessions, i.e. garage door opener & remotes, window screens, all appliances, back yard landscaping and fencing - I find that these are the easiest things to get.
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April 28 2011
Everything is negotiable. However we find most builders are not providing much wiggle room these days...but maybe you can try negotiating terms??? Ask for some appliances, a longer home warranty and more concise than the standard, title or points paid...all kinds of terms make you feel like you are making a great deal and he can just write it off!
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April 28 2011
You can negotiate just about anything, especially in this market that is still quite fragile.  I helped a client buy a brand new construction condo last October and helped them to save a substantial amount of money off the list price, plus I helped them to obtain a few other goddies in appliances and upgrades.  Timing is important when negotiating.  It never hurts to ask.  Use a good real estate agent and you shoulbe in good hands.
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April 28 2011

That depends on the builder.  Many would rather give you some free upgrades as opposed to lowering  the sales price.  Some will do both.  It is best to get a Realtor to represent you as a buyers agent.  They can pull comps. and help you netogiate to get a price and upgrades that you are happy with.

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April 28 2011
It is harder to negotiate new construction than resale homes or builder homes that are finished and in inventory. Most builders start out with a base price that is not really negotiable. Then they add costs for each upgrade you choose. The best tactic is to find out what the final cost will be including each upgrade you want. Then go back in a few days later and offer less.

Of course with pre-construction you are also getting the colors you want as well as a builder warranty. Run the closed comps to see if other homes are falling the same price per foot in the neighborhood.

Remember that a builder isn't going to construct something that they won't make a profit on. With the cost of gas so high right now, the cost of building will go up in tandum.
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April 27 2011
There's always room for negotiation if the asking price is too high. It all depends on the developer and the state of the market. This market is brutal, so more builders and developers are willing to negotiate. If comparables have sold for less in that area, then it will probably sit unsold anyway. How much earnest money are you willing to put down?
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April 27 2011
Profile picture for wetdawgs
You may be able to negotiate upgrades as part of the price rather than substantial price reduction.   The biggest room for negotiation comes when the "new" home has been sitting completed for a few months to a couple of years and hasn't been purchased.
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April 27 2011
 
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