How to make an offer to a builder? (sales, broker)

[sue77]

I recently saw a Ryan model home at skybrook. The lady at the model said the model as is priced at 408. I asked my broker are these guys going to come down on the price and she said they might give u some freebies but they wont really come down on the price. My question is if that is true in todays economy and if not whats the best way to make an offer to a builder and how much should you low ball?

[gkleoni1]

In this situation I say make an offer based on comparables and realize how bad the market is for the particular price bracket. Also I am kind of put off by your agent's response but will assume they gave you additional details. Builders will and are coming down on price... One last piece of advise is that to remember your agent works for you, you tell them what you want to offer. Ideally it should be a partnership between the two of you but when that fails make sure you make decision based on what you are comfortable with.

[sue77]

i agree with you. i just don't get that feeling with my agent. The additional details she gave me was that she thinks they will add on some freebies n max they will go down is 5%. So I was kinda dissapointed with that.

[North_Raleigh_Guy]

Did you ask your agent to pull recent comps? Knowing what homes sold for last week is a good place to start crafting your offer.

[sue77]

Thanks

[sue77]

I believe no homes have sold in that neighbourhood for the last one month

[Zatol]

Maybe they have already priced the house according to the market and only have a little room to move. You'll soon find out once you make the low ball offer if it's rejected.

[MysteryMT]

Originally Posted by sue77

I believe no homes have sold in that neighbourhood for the last one month

You can check about recent sales at this site: Carolinahome | Sales Search page

I can only verify that the date and price for my particular home is correct when I looked it up.

[pink caddy]

There's another thread running right now that has a few more responses on it for the same subject.

[Belmarin]

Here is the same response I posted on the thread referred to by Pink Caddy.

I do not rely on comps in today's economy. The priciple factor in my opinion is the "seller's motivation". Do they want to sell, or just testing the waters? Do they need to sell? Are they desperate to sell? The only way to determine the answer is to make an offer based on what you are willing to pay.

It only takes a short amount of time for an agent to draft an Offer to Purchase.