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How much of a discount off a new build is reasonable?

I am interested in buying a new build in ofallon mo.  The square footage is 2256.  The base price is approx 233k, and I want 36k in upgrades.  In addition there is a lot premium of 5k.  This is a grand total of about 278k.  My max is 260k and I will need closing costs covered.  I plan to offer 260k with the builder covering 15k in free upgrades and they pay closing costs.  I want to be realistic but have never been in this type of situation.  Is my offer reasonable?
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July 20 2013 - O Fallon
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Profile picture for wetdawgs
If the houses are selling well in the subdivision, your offer is likely to be considered  a lowball.   If the builder has some homes that have been sitting there for some time that haven't sold, then you may be lucky.  However, I get the feeling from reading  your post that you are planning on customization.

It is often to your benefit to have a buyer's agent in purchase of new homes.

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July 20 2013
Profile picture for SoCal_Engr
So, you are planning on offering $260K minus closing costs on a $280K asking.

As Wetdawgs said, it is going to depend on how the properties are moving.  In my personal experience, builder's are not going to negotiate if they don't need to (brilliant insight, eh?). But, builders are more likely to negotiate on upgrades (given that the upgrades tend to have sizeable markups).

The last time I bought a house in a development, there were 4 other families, with checkbooks in hand, waiting to put a deposit on the house if I didn't. Not much "negotiating" was done.

So...what's the demand like for this builder's properties?
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July 20 2013
There are no negotiations on new builds in our area, we have a strong military influx of new people so demand can be high at times.  All you can do is try but I have found that builders have already priced the new homes to sale so they are not sitting on them paying interest for too long.

By the way, sounds like a really nice house, especially with $36K in upgrades!
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July 20 2013
 
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