Offer price?

user975192
Contributions:2

We are interested in a new construction home. Currently the seller is either selling the land, or a new construction home on the land. He will not build the home, unless someone makes an offer. The land only has been on the market for 2 years - and the option for a new home to be built on the land for about 6 months now. He initially listed the home at 545K, and dropped it to $515 about 5 months later. We want to bid 450K on the house - it is an irregular lot - much smaller than the lots in the neighborhood, and think that the seller is very motivated. The neighborhood has mostly old homes - priced between 300 - 400K, and brand new townhomes, priced 500K and up.
Any adivice whether the offer is too low, too high, reasonable?

Flag content

February 17 - Secaucus

E-mail Share RSS

Answers (4)

Elena Petrov, "kapyarets"
- 4.3/5.0
- (3 reviews)
Contributions:174

You will reach nothing negotiating the price of the house that doesn't exist, if that house isn't the one of the similar houses in big subdivision and you saw the model.

You should use a different approach to make an offer for a new construction. First you need to know what is in that price that the builder is offering. Get the design and specifications. Ask what is standards and what will be extra. You may want to have some changes in design, move some walls, doorways or windows. After that try to negotiate as much changes or extras in the price the builder is asking.

Flag content

February 17

Andrea Ballesteros Team, "BallesterosTeamOC"
- 5.0/5.0
- (12 reviews)
Contributions:36

Then I would suggest starting a little lower. It is also going to depend on the Seller's/Builder's readiness to come off his price. If you put your bid out there and negotiate it even if the Seller is not currently ready to accept he will have it in the back of his mind should the property not sell. I hope this is helpful.

Flag content

February 17

user975192
Contributions:2

that's where we'd like to end up at, give or take 5 K.

Flag content

February 17

Andrea Ballesteros Team, "BallesterosTeamOC"
- 5.0/5.0
- (12 reviews)
Contributions:36

What area are you in? The offer is reasonable especially in todays market. Is this a starting point for you or is this where you would like to end up? Every Seller has a reserve price that they would like to meet especially a builder. The key is to start at a point not too low but low enough where you can come up and the Seller can come down so you can meet in the middle.