Negotiating tips on spec home (Charlotte, Waxhaw: sale, real estate market, renting)

[colleenlit]

Hi all - okay, my job offer seems to be getting closer and closer, so I may actually be coming into town next week to buy a house. yay.

I'd like to know opinions/experiences with negotiating the best deal on a "quick move in" new construction home. Of course I know prices have already dropped quite a bit, so about how much would you attempt to negotiate below asking price? Because we will be renting our current home we want to use as little cash as possible, so asking the seller to pay closing costs will be a must for us. I'm fine with using the builder finance company as part of the deal.

So, say Union County or Ft Mill, asking price between 250k-300k. My thought is maybe offer 95% of their asking price and they pay closing costs. Some builders are advertising lower interest rates, paying closing costs, any differences with what to offer these guys? I'd be looking to close asap, 2-4 weeks at most.

I'll as my real estate agent as well, but just wanted to know what wisdom the community has to share!

colleen

[Charlottean]

You might want to speak with a lender and have them run your specifics. Having a home rented and trying to purchase another one is a bit risky to them at this point if your not planning on putting a bunch of money down.

[berryjuice4life]

when we spoke to BofA, Wachovia and Pulte Mortgage we were told back in Nov 08 we had to have 20% equity in the home, as well as 6 months reserve for the new house and 6 months reserve for the old house..also remember the Fico score also will determine their some of their guidelines as well...I did call a friend of our dh's who does mortgages before the holiday again to find out, and was told the same thing...good luck and I agree with Charlottean make sure you call around to lenders..

[wdavid002]

I can only share my experience with you..don't know if it will help but here goes. I found a builders inventory new construction home in Cureton, Waxhaw. Offerred 11% below asking price then added 10,000 on to cover closing costs (which are unbelievably low here compared to NY). Went through their lender Wells Fargo and closed in 3 weeks. Smoothest transaction I ever experienced. Very little docs 2 paychecks couple of statements that was it. My advice is offer as low as your want (within reason of course). Don't be afraid. All they can say is no, but they won't walk away from a sale so they will make a counter. There are alot of fish in the sea. Get a smart RE broker who knows the area and is looking out for your best interest, not just to make a sale. I had a great guy who steered my into the right area even though he would have made the same amount regardless of where I bought. There are money under the table deals between buidlers and RE brokers to bring people in so be careful. Go with your gut feeling. Do your homework. I was in the same price range and went a little higher and got alot more for my money once I went into the 300's. Look at MLS online but don't let the pictures fool you. You need to go there and see how you feel about each development. It will hit you once you see the right area / develoment / home.

Good luck and DM me if you have questions.

[south.charlotte&union]

Definitely check with your lender first. Don't work off of list price, which sometimes can be inflated. Have your realtor find out the sold prices for the most recent inventory homes and work off of that number.

[colleenlit]

Hi all - thanks for the tips. Yes, I've already been preapproved by my lender for an fha loan of up to 280k, 3.5% down payment. They've run a credit check, understand I'm renting my current place so I think I'm okay on the mortgage side. I feel like I'm well prepared to be a "serious buyer" and truly sign a contract and close in a few weeks, so I want to know how to use this to get me the best deal possible!

colleen

[berryjuice4life]

Originally Posted by colleenlit

Hi all - thanks for the tips. Yes, I've already been preapproved by my lender for an fha loan of up to 280k, 3.5% down payment. They've run a credit check, understand I'm renting my current place so I think I'm okay on the mortgage side. I feel like I'm well prepared to be a "serious buyer" and truly sign a contract and close in a few weeks, so I want to know how to use this to get me the best deal possible!

colleen

Get a good agent, pull the comps of what has recently sold, and make an offer.and DO not think u are insulting the Builder because in this market anything goes as ive personally seen when it comes to new construction...Your lucky fha is still doing the 3.5 percent down..

If they let u walk in this market then id go somewhere else...

[amploud]

As a starting offer, there is no reason to go above 80% of asking price on an inventory home right now. They probably won't take it, but they will counter with an offer that might surprise you. Builders are hurting and need cash flow. On top of that, the real estate market is decelerating. Take advantage!