Zillow Advice: Buying New Homes - When making a offer on new construction

S.F. nobody here cares if ...

Tue, 23 Jun 2009 05:16:00 GMT

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.

It seems everyone is quick ...

Mon, 22 Jun 2009 23:33:00 GMT

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.

I am in Portland. Make ...

Mon, 22 Jun 2009 12:31:00 GMT

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.

Ask for the upgrades!! In ...

Sat, 20 Jun 2009 04:38:00 GMT

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.

follow your gut - most of ...

Sat, 20 Jun 2009 04:20:00 GMT

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

Thanks I for the advice I ...

Sat, 20 Jun 2009 01:02:00 GMT

Thanks I for the advice I felt it was wrong

Fire your agent for incompetence. ...

Fri, 19 Jun 2009 18:17:00 GMT

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

Your agent is wrong. ...

Fri, 19 Jun 2009 17:24:00 GMT

Your agent is wrong. Go for it.

Buying a new home is exciting. ...

Fri, 19 Jun 2009 14:20:00 GMT

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

at what % of the asking price ...

Fri, 19 Jun 2009 12:56:00 GMT

at what % of the asking price would you guys start your negotiations at.