Profile picture for malhotra pratibha

Negotiation for last fewhouses from Builder

I have been recently approched by Builders representative about a user-construction house I saw 2-3 months back. She said thay have last 3-4 houses left and want us to come, have a look at fully constructed house. She said they can think about revisiting their price.
I want to know what is the margin I should be playing with. I don't want to quote too low and kill the chance of negotiation. t the same time I want to only go for this house, If get a great deal....

Any pointers on how to proceed with such deals would be very helpful...

  • January 24 - Alpharetta
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Answers (4)

Basically, you are looking at an "inventory house" meaning they want to get it sold. You have the power at this point, but you are smart to not want to over do it. Find out what the other houses have sold for in the community, and then knock off 5-10%, or if it means more to you, then go close to asking price and have them pay a high percentage of closing costs. You can go as high as 6% of the purchase price depending on the loan program you use. They may want you to use their lender if you want closing costs, but tell them they have to meet market rates and costs. I do a lot of financing for buyers who don't meet the builders "preferred lender" requirements so feel free to call with questions. All the best!
  • January 24
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Profile picture for BrokerAppraiser
Was it one of the ones off the MLS searches that you asked me to set up?
  • January 24
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Profile picture for Outer Banks N C
Builders don't like to discount much at all. If they are all sold out, except for a few homes left, the builder might be willing to discount. But I bet it won't be much, a few percent maybe.
  • January 24
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First, do not go back out there without having your buyer's agent present.  If they are familiar with new construction and frequently work with builders, they should have a good idea of where to start.  

For builders it is a business transaction. It is not an emotional decision like it is with many home sellers. If they do not like your offer they will usually tell you so or counter. Ive seen builders hold firm on their price, Ive seen them come down $5,000 and Ive negotiated more than $30,000 off.  It really depends on  the situation. 

If you do not have a Realtor® to help you negotiate, I will be happy to meet with you and help get you the best deal.   

Good luck, 
Cassandra
  • January 24
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