How much can buyers negotiate on new home construction (base price/upgrades) (Frisco: appliances, home builders)

[allipet]

I am looking at purchasing a Centex home in the Knolls of Frisco. It is my understanding there is not much negotiating on the base price of the home. I am trying to find out what I can reasonably expect to negotiate on upgrades with this builder and community? I only want to spend a max of $10,000 in upgrades but definitely want to make it look good Any tips would be greatly appreciated (I am a first time home buyer).

[dixierambler]

Originally Posted by allipet

I am looking at purchasing a Centex home in the Knolls of Frisco. It is my understanding there is not much negotiating on the base price of the home. I am trying to find out what I can reasonably expect to negotiate on upgrades with this builder and community? I only want to spend a max of $10,000 in upgrades but definitely want to make it look good Any tips would be greatly appreciated (I am a first time home buyer).

Typically, there is very little room for price negotiation with tract home builders. Doesn't matter if it's the base price of the home or the upgrades. If you want Plan A, it costs X dollars. Upgrade B costs Y dollars. Take it or leave it. However, given the situation with the economy, and the inventory of unsold homes, you might have a better chance today of getting a bigger and better upgrade than you could have last year.

But if you aren't very knowledgeable about construction, upgrades can sometimes be like walking through a minefield. Some offer good return on investment, others are more fluff than substance. High efficiency and energy upgrade packages usually offer good ROI. Granite counter tops, higher grade plumbing fixtures, hardwood and/or tile floors are also pretty safe bets. But you can generally save money by adding the "eye candy" after you move in. Things such as crown moldings, closet systems, custom paint, upgraded appliances, light fixtures, and landscaping. But again, with today's market, you might be able to work a better deal today than you could last year.

[sftransplant]

I don't know about constructing from scratch but here's a data point that may help. A friend just bought an inventory home (new) in Murphy. He negotiated it from $90 to about $70 per sqft. Your best bargains are going to be on inventory homes that aren't selling.

[nsumner]

Originally Posted by allipet

I am looking at purchasing a Centex home in the Knolls of Frisco. It is my understanding there is not much negotiating on the base price of the home. I am trying to find out what I can reasonably expect to negotiate on upgrades with this builder and community? I only want to spend a max of $10,000 in upgrades but definitely want to make it look good Any tips would be greatly appreciated (I am a first time home buyer).

Centex still has about 200 lots in this community so they will be there about 3 years. You need to take that into consideration if you are going to move by then or short thereafter. You will be competing with the builder.

They don't have any inventory homes right now and they don't negotiate on prices on build jobs. They may give you a few thousand dollars to spend at the design center on upgrades.

There are several builders with homes that are already built and have lots of upgrades in them on the market in Frisco. You can negotiate more on those homes.

Have your Realtor do a market analysis on the community and you will see what actually the homes are selling for.

Naima

[DSL_PWR]

Originally Posted by nsumner

They don't have any inventory homes right now and they don't negotiate on prices on build jobs. They may give you a few thousand dollars to spend at the design center on upgrades.

Naima

Just based on what you said there I would walk. A builder that will not deal at all is a builder that you DO NOT want to deal with..

EVERYTHING is negotiable..

[txgolfer130]

While this is true that "EVERYTHING" is negotiable, they are only negotiable to a point. Some are right that contract TO BUILD, probably won't get you very much of a discount. W/ Centex maybe 10-12k in total.

However, on a spec home, especially if there are several available...if you have your financing already approved and are just waiting for an address, then you have much more power to negotiate. Also you will have more power to negotiate w/ builders that are on the verge of going under (inventory only) or are operating in bankruptcy.

A good friend just closed on a Mercedes home where they gave him a total of 3 points towards closing AND came off the price $18k on an inventory home. The deals are out there, you just have to keep searching and be ready to pounce immediately.

[lh_newbie]

I have negotiated on a home once - getting about 5-6% off the initial price, then 50% off upgrades (which will obviously make your $10K go much further)

[scarmig]

Centex doesn't negotiate, in my experience. They are also pressure sellers, which I despise. And from friends we know who have bought them, the houses don't hold up well over time. I walked away from Centex and went with Horizon and we're much happier with what our dollars bought.

[txgolfer130]

Centex does negotiate, but not very much and not on the lower end range of their product line-up.

[BichonGirl]

Go over to KHov in Shaddock Creek Estates or Highland Homes in Stonelake Estates for better resale values!