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When making a offer on new construction

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tde123

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Asking is 249900 I am ok with making a full offer but I would like about 15 to 20k worth upgrades is that asking to much. I live in Aloha, Oregon. I am not gonna ask for closing either. My agent thinks I am asking for too much.
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June 18 - Aloha
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Michael Russell, "real estate mike"

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Your agent is probably wrong. You should ask for all you can upfront because they will negotiate with you. If you cave in pay full price you just bought retail and retail is no good. In my opinion I would also ask for 2% towards closing. $20k in upgrades and see how it ends up. Not sure why your agent isn't in the fight with you, let them know you expect more.
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June 18
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tde123

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Is that just in Texas or can someone in oregon give me there experience with new construction.
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June 18
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Thesa Chambers, "Thesa Chambers"

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contractors are hurting like the rest of the market - in Oregon we are seeing an "uptick" can not say it is going up but things are starting to change.

If a buyer were to buy this home with an FHA or VA loan they could ask for 6% in closing costs.... and what are the ratios in the project - listing to selling -

I tell my clients that it never hurts to ask... the worse they can say is no.  Your agent may have inside information... but ultimately you make the decision of what you will pay for what. 

Write it up - worse case they say no - middle of the road you get part of what you want and best case you all walk away winners.

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June 18
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tde123

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at what % of the asking price  would you guys  start your negotiations at.
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June 19
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Roberta Nopson, "Nopson"

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Buying a new home is exciting.  As a certified new home specialist, be sure to write everything into the contract;  exactly how/what you expect the builder to provide in an upgrade.  Do not assume they will read between the lines and understand what you meant.

You are the one buying the home not your agent.  Your agent may be skeptical that you will not receive everything you want, but by not writing the contract as you the buyer would like, does not provide you with the option to find out WHAT the builder will include.

When I look at the numbers you are only asking for about 8% off list price of the 249K with 20K in upgrades.  Plus you are not asking for closing costs.

Make sure your agent is your buyers agent and the site agent that "says" they are representing you as well.  Site agents work for the builder first!

For more information on buying new construction visit my website www.robertanopson.com.

Roberta Nopson
accredited buyers representative
503-495-5231
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June 19
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William Metzker, "MrLiam"

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Your agent is wrong. Go for it.
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June 19
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jal74

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Fire your agent for incompetence.  Ask at 30% less list and then start negotiating.  Is it a private builder or public?  If its private, Ask them how they like their bank calling them about cash flow everyday?  Wouldn't it be nice to close on a build today, even if the builder gets less than what they want?

Don't worry about being a dick, its a cold world out there today and you need to protect yourself from the downward trajectory of prices

Regards
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June 19
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tde123

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Thanks I for the advice I felt it was wrong
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June 19
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Thesa Chambers, "Thesa Chambers"

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follow your gut - most of the answers you got are valid - weed through the ones that are good and go for it.
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June 19
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Isklopot

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Ask for the upgrades!!  In many cases the cost to the builder of an upgrade is astoundingly small when compared to what the "list price" of the upgrade is--interior upgrades in a house are the "paint protection" and undercoating the car dealer tries to sell you.  Upgrades are major profit sources to builders.  He's going to install interior doors, and the only cost difference to him between the stock door and the upgrade is a very small material cost;  same logic applies to upgrading plumbing and electrical fixtures, paint, door hardware, etc.  May get some push-back on kitchen appliances, cabinets and countertops, as well as flooring depending on the level of standard and upgrades you want--there material prices can be substantially different between stock and upgrades.  However, the cost difference to the builder is always way less than the extra he charges you.

We built our first house ourselves (we're now in our fourth), acting as our own general contractor and laborer.  We had spent 90% of our money and were on our budget, but the interior was a mess--no drywall up, no fixtures/flooring, etc.  Finished up on budget with everything done.  That's the first time I realized the vast majority of the cost of a house is the land/site prep, foundation, shell (exterior walls, siding, roof), and plumbing/electrical rough-ins.  The interior stuff you actually see is a very small part of the cost, yet that's where builders make much, much money charging for upgrades.



 
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June 19
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Pat Bourgo, "Pat Bourgo"

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I am in Portland.  Make sure the builder isn't going BK.  Get the cards on the table.  The builder won't give in later, trust me.
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June 22
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Stephen Fitz - Since 2003, "2PercentRealtor"

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It seems everyone is quick to dismiss the agent here.  Your agent may know more about the market situation for the property in question than you or any of the other agents here.  It may be that the agent simply knows offering 20k won't work.  Sure you can try and I'm sure your agent will make the lower offer.  I would not assume your agent is going to be wrong in the end.  Times are tough, but the construction company may have already lowered the home to an appropriate price and may not be willing or able to reduce the price that drastically.  
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June 22
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Michael Russell, "real estate mike"

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S.F. nobody here cares if the builder has priced accordingly. The question is as a buyer what do you do. Wake up man. Win -win is for the classroom, this is dog eat dog. I would hate to think you were my buyers agent.
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June 22
 

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