New Builder Negotiation

[Robynn]

At least 20-30k off the sales price...super inflated

[crjones9]

Okay... Sounds like 220 is a good starting point. Is it a good idea to ask the builder to cover all of the closing/prepaid costs?

Thanks to all for your input.

[crjones9]

I have just been directed to check out a Perry Homes prop listed at 235000. I will visit the prop by weeks end.

[a_guerrajr]

Every builder is different.
Perry in Spring.Trails.is.aggressive, they will discount a nice chunk.
Some will go lower than their base price(watch out for those)
Others will invest amount x in the base and amount x in upgrades. So they have to break even, or if a.house sits too long, then you get a nice discount.
Usually they have some incentive, at times you end up paying alittle.more.than base.price.for.an.upgraded home.
Get comps and that way you can make an educated offer.
Just cause an inventory is 250, doesn't mean you can offer 200.

[huma281]

Originally Posted by a_guerrajr

Just cause an inventory is 250, doesn't mean you can offer 200.

You can offer whatever you want, whether they will entertain your offer is another matter.

[jdias08]

I just offered 262K on a Darling home listed at 301K in Sienna Plantation and they accepted. It made me think I offered too much. It is NOT an inventory home. It is currently being built and will be ready in July. The base price for this home is 266K but they added all the upgrades, wood floors everywhere except bedrooms and all the bells and whistles and I was still able to get it below base.

[a_guerrajr]

Originally Posted by jdias08

I just offered 262K on a Darling home listed at 301K in Sienna Plantation and they accepted. It made me think I offered too much. It is NOT an inventory home. It is currently being built and will be ready in July. The base price for this home is 266K but they added all the upgrades, wood floors everywhere except bedrooms and all the bells and whistles and I was still able to get it below base.

that's about 13-14% off LP , which is a killer discount.
they must be hurting for sales if they discounted that much on a house that's not even built.

are they in a close out phase?

[a_guerrajr]

Originally Posted by huma281

You can offer whatever you want, whether they will entertain your offer is another matter.

Yup.. 8-10% is a typical discount on a built inventory. Just really depends at what stage it is in.

Also the momentum of sales factors in a lot, is the builder slow in sales?
Also the time the house has been sitting there
Close out phases
Intro pricing

It's not always a given that an inventory home will get a crazy discount, it's all about timing.
Also neighborhoods that are having that problem, i would caution. If they are giving you houses below base price, that's a good indication that the builder will keep decreasing the value of your home by selling the next person at a cheaper price if they can't maintain a price point.

[crjones9]

Originally Posted by jdias08

I just offered 262K on a Darling home listed at 301K in Sienna Plantation and they accepted. It made me think I offered too much. It is NOT an inventory home. It is currently being built and will be ready in July. The base price for this home is 266K but they added all the upgrades, wood floors everywhere except bedrooms and all the bells and whistles and I was still able to get it below base.

Interesting... upgrades; did they cover your closing costs; is it in a close out neighborhood; where is Sienna Plantation?

[Robynn]

Originally Posted by crjones9

Okay... Sounds like 220 is a good starting point. Is it a good idea to ask the builder to cover all of the closing/prepaid costs?

Thanks to all for your input.

They usually have some deal set up where they will cover some or all closing costs if you use their preferred lender.