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Answers (8)
Best Answer
- Mike Satterlee, "Mike Satterlee"
- Contributions:621
In this market - yes. Offer a much lower price and ask for a credit for upgrades and closing costs. Hold firm on the credits - negotiate on the price. The most important thing to builders is maintaining price parity within a plat so they won't give very much on price. This actually benefits you as a new owner. You can be confident that the builder - if they know what they are doing - is not undercutting the value of your home by giving in on price.
- Steve McCurdy, "The Realtist"
- Contributions:11
You bet you can offer anything you like, and ask for the kitchen sink as well..
Builders of new homes do NOT like to take too much less than what they are asking because it will hurt what are called their future COMPARABLES.
So maybe instead of going for a lower price, ask for more closing cost help, ask for more appliances, a garage door opener, etc...
And choose your lender carefully, are they giving you a credit at closing? Are they hiding costs of the loan? Are you SURE you want to use the lender the builder recommends?
Just Call The 'Realtist'
Steve McCurdy
[contact info removed by moderator]
Builders of new homes do NOT like to take too much less than what they are asking because it will hurt what are called their future COMPARABLES.
So maybe instead of going for a lower price, ask for more closing cost help, ask for more appliances, a garage door opener, etc...
And choose your lender carefully, are they giving you a credit at closing? Are they hiding costs of the loan? Are you SURE you want to use the lender the builder recommends?
Just Call The 'Realtist'
Steve McCurdy
[contact info removed by moderator]
- Mike Leary, "Mike M Leary"
- Contributions:12
As several have said everything is negotiable. That said, you need a good Realtor to help you figure out where the builder stands in general and in the specific neighborhood. I just scored some buyer a price 8% under what his new neighbors paid plus a whole set of appliances because it was one of the last houses in the tract he was building out and he wanted to get up and out of there.
A builder who is just starting a neighborhood is going to be far less negotiable because he needs to keep his comps up as he sells each succeeding home.
Another consideration is how long you plan to be in the home versus how long it will take the builder to build out all of the lots. If you may be trying to sell before he finishes it's going to be hard to compete with him on anything but price and you'll likely lose money.
Again, a competent Agent can help walk you through different scenarios.
A builder who is just starting a neighborhood is going to be far less negotiable because he needs to keep his comps up as he sells each succeeding home.
Another consideration is how long you plan to be in the home versus how long it will take the builder to build out all of the lots. If you may be trying to sell before he finishes it's going to be hard to compete with him on anything but price and you'll likely lose money.
Again, a competent Agent can help walk you through different scenarios.
- Pamela Anderson, "Pamela Anderson"
- Contributions:91
Builders want to move their inventory just like a seller wants to sell his house. Your Buyer's Agent should run comparables for you. If the comps support a lower price, then write it up! Everything in this business is negotiable!
- Toni Anderson, "Toni L Anderson"
- Contributions:15
Alot of the negotiation with the builder and pricing is going to depend on the home itself. If it is a new build (just started not even built yet) you are going to have less negotiating power. If it is an inventory home (mostly complete with few choices such as carpeting left to finish) you are going to have alot more bargaining power. A completed inventory home is the best becuase the builder is paying on a construction loan until the home is sold. The longer the home has sat the more the builder has spent on it. Most builders will discount a home that has sat without offers as they are losing money on it. Take a knowledgeable Realtor with you that has a Certified New Homes Salesperson designation, and they will be able to give you neighborhood specifics such as how long the subdivision has been building, the backgound and financial stautus of the builder, and the pricing history of the homes that have sold there. Good Luck on your new home search!
- John Squier, "John Squier"
- Contributions:229
Everything in real estate is negotiable, whether you offer more or less. A good Buyer's Agent will arm you with timely market data showing you current buyer behavior so you are making informed and strategic decisions and ultimately getting what you want at a price you are comfortable with.
- Tim Moore, "Kitty_Hawk_NC"
- Contributions:151
You can always offer less or you can offer more, it's up to you but the seller can always say no. Often a builder will not come off his asking price because it will set a precedent in price that will then affect the next home he builds like that one. Often a builder will hold to his asking price but he might throw in some closing costs or maybe an upgrade in the house to sweeten the deal.
- Dan, "the_country_hick"
- Contributions:4699
It is like buying a new car.
Offer below asking and try to get a good price. There is always room for negotiation in everything.
Offer below asking and try to get a good price. There is always room for negotiation in everything.
When buying a new construction home, is it okay to offer less than the advertised price?
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