Profile picture for bruehlt

Taylor Morrison - any possibility to negotiate upgrade prices with them?

We just signed a contract to build a new home through them in a new community.  They gave us $13,000 in money to play with at their design center, however when we went to visit to get an idea of things, their prices are crazy.  Using their prices we are looking at about $60,000 in upgrades.  I've seen other folks state that some builders will negotiate a percentage off of the final price of the upgrades (5-10% maybe?).  Anyone know if Taylor Morrison will play ball with this as well?  Even if we can get 5% off it will be a help to us.  I know that markups on upgrades are huge.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 18 2013 - Florida Center
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (7)

Builders often will negotiate upgrades...it's a matter of simply over pricing them in the beginning and then giving a little back.

In your case it sounds as if it may be too late to have a bargining advantage, since you have already gone to contract. Buyers always have better results when seeking discounts if negotiations are done prior to an agreement. Once there is an agreement, you have essentially surrendered your advantage and a buyer/negotiator.

This is another reminder of how entering a new construction venture can be supported through the use of an experienced real estate professional that is representing your personal interests and not the builder.

It may be too little too late in your case...

Good luck,

Bill
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 24 2013
Jonathan is dead on.  In my market builders are selling homes like crazy in communities that havn't even broken ground yet. People are actually buying the homes just off drawings on sheets of paper! Crazy but that's the market right now.  It goes without saying that they don't have to negotiate right now.  It is probably the same in your area as most of the country is plagued by low inventory.  Having a realtor with you is your best chance to negotiate on prices.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 23 2013
Profile picture for user85356358
P.S.  They do an EXCELLENT job!!  We have had only a couple minor items, to fix and they were all done in a very timely fashion (closet door adjustment, small re-grout on some shower tile, lawn sprinkler head swap out, etc.). All very minor stuff, and really love the house.  We bought a Deerfield model in Clermont, FL.  Everyone has been very good to work with.  If you have really signed a contract without knowing the total (approximate) price, I would go back to them and ask to start over.  Given our experience, I CAN'T imagine they would want you in something you can't afford, or that doesn't have the features you have your heart set on.  Your not buying a used car, your buying a new house.  Our rep sat with us and priced everything we wanted in the house, and then we went to the design studio and selected among the items in the levels we had chosen.  Everything we wanted was to our standard (and satisfaction) completely within what we had budgeted.  We made minor tweaks, but the design center options were to the quality level, and as explained by our rep.  Something has gone very wrong with your experience, you need to start over.  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 23 2013
Profile picture for user85356358

Rather odd, we purchased a TM home last June, but we priced all the upgrades BEFORE we signed the deal, that way we were sure we got what we wanted and the price we wanted.  Given TM's process, I thought you had to do it this way.  How did you sign a contract WITHOUT a total price??
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 23 2013
Travis,

I recently helped clients purchase a Taylor Morrison home at Whisper Creek in Arvada, Colorado. The home was inventory, not a semi-custom build, so it was easier to get price reductions. In fact we were able to negotiate significant discounts to base price, upgrades, interest rate, and got $5,000 on in-house mortgage incentives.

For a new build, it will be a bit more difficult, especially if your real estate market is strong. However, remember that every price the builder gives you is a retail suggestion (you wouldn't pay MSRP on a car lot, would you?). A good technique to reduce upgrade costs is to get a feel for what the same upgrades would cost through indie contractors, then present your findings as you go through the upgrade list with the TM rep. The rep has major incentives to get you to purchase upgrades (sort of like the how finance manager tries to hit you up for extras when you buy a new car), so be VERY stern in your negotiations. You will be able to get upgrades at a minimum of 20% off. If you have trouble negotiating yourself, get a buyer's agent on your side.

In fact, if you can get out of your contract with TM for little or no money, I would suggest getting an agent to represent you immediately. Buyers frequently think they don't need representation when buying from a builder... WRONG! Builders will try to NAIL you.

Another misconception is that buyers will save money for the builder, thus themselves, by not using an agent. WRONG! Your offer will not be any stronger without an agent in your corner. TM has already set aside about 3.0% (sometimes more) to pay buyers agents. I get e-mails every week from Taylor Morrison to bring my clients to them, offering me great great incentives to do so; they are more then happy to pay agents to get their inventory sold and lots filled. Moreover, doing it yourself will likely mean you pay far more for the build than you have to. Builders can't pull the wool over the eyes of a trained professional.

Best of all, by using an agent, you can get money back after close. That's right! You've already done all the leg work. Find a hard negotiating agent to get you a great contract on the house and have them rebate 1% of the purchase price back to you after close. Using a buyer's agent as your representative will save you big money on your new home!!!

Anyone reading this: GO GET A BUYER'S AGENT TO REPRESENT YOU WHEN BUYING FROM A BUILDER! YOU WILL SAVE THOUSANDS IF YOU HIRE A COMPETENT PROFESSIONAL!!!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 18 2013
If the upgrades are structural in nature moving walls adding rooms etc. you are going to have to negotiate very hard with the builder. If you are looking at the type of carpet, flooring, tile, & items like that you could try to pressure them for discount or just let them install the base product and upgrade it later. There are people that prefer to take the base product, live in it for a few years so they can determine what they truly want to put in the property. There is also no harm in telling the builder that their markups are to high you would rather just do it yourself later on, it might encourage them a little.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 18 2013
Profile picture for user0656247
I have know idea if they will negotiate but it does not hurt to ask. My gut says no since you already signed a contract and they have all the leverage now. My wife and I are going through the same thing right now, we signed on to build a house with Beazer homes. You did better than us Beazer gave us $5,000 to play with at the design center, they said since we did not spend much on the structural upgrades they could only give 5,000. We did not spend much on structural upgrades because our budget is only $12,000 over base price of our model. We are more worried about getting the the model with the most square footage now and worry about upgrades later. Its only been a week and i have been to the design studio 3 times to price everything out. Yes we want level 3 laminate and level 4 carpet but not going to happen. They want $3,600 for the level 3 laminate in the foyer/kitchen, I just talked to a flooring company they said they could put the same laminate in for $1,800. Thats half the price we will just have to do it later. The the stainless steel refridgerator is $1,700, i found it at lowes for $800. My advice, check all prices throughly. Get some things now do others later.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 18 2013
 
Related Questions
Procuring Cause
Profile picture for Georgina  Villa O'Bryan
Latest answer by Georgina Villa O'Bryan
March 03 | 6 answers
Taylor Morrison - any possibility to negotiate upgrade prices with them?
Profile picture for Bill Eckler
Latest answer by Bill Eckler
March 24 2013 | 7 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 7062 Archwood Dr, Orlando, FL Home For Sale
    7062 Archwood Dr, Orlando, FL 32819

     For Sale: $179,900

    • Beds: 4
    • Sqft: 1677
    • Baths: 2.0
    • Lot: 10018
  2. 5455 Vineland Rd APT 3102, Orlando, FL Home For Sale
    5455 Vineland Rd APT 3102, Orlando, FL 32811

     For Sale: $105,000

    • Beds: 2
    • Sqft: 1142
    • Baths: 2.0
    • Lot: --
  3. 3726 Palm Desert Ln APT 5227, Orlando, FL Home For Sale
    3726 Palm Desert Ln APT 5227, Orlando, FL 32839

     For Sale: $58,000

    • Beds: 2
    • Sqft: 1062
    • Baths: 2.0
    • Lot: 101015640