Price Negotiation on New Construction (Katy, Cove: credit, how much, new home)

[new to this]

Hello everyone,

As I've mentioned in my previous post my sister is looking at purchasing a new construction home. That being said I believe she's found a home that she would like to build, but of course with some upgrades being done. My question is; Is it possible to negotiate the price of a new construction home despite making upgrades? The house she will be purchasing will either be in Cane Island or Elyson, and it is not an inventory home, but a new build. We've read that in the past, that price negotiations on new constructions were something typically done. So if you have any insight or knowledge on this matter please share!

Thanks everyone!

[jtothemak]

Yes price is negotiable, if you don't know exactly what to haggle than get a good Realtor. Also watch out for Cane Island taxes they are super high at 3.8% because you have to pay city taxes and mud taxes. Depending on the price of the house that can be several thousand more per year in taxes over other new neighborhoods.

[new to this]

Thank you for the heads up on Cane Island. I'll be sure to share this with my sister. I'll also recommend that she gets a realtor. When negotiating will they come down off the final price? Upgrades? Buying down points?

[96tahoe]

Elyson Prop Tax is high as well, 3.75%

[new to this]

In your opinion due to the property taxes she would be best serve looking at a community with a lower tax rate?

[96tahoe]

There is a lot to balance here, budget, importance of schools, etc. Most of the good part of Katy isd is going to have a prop tax rate of 3% or more.

[haudi]

You can negotiate design center credits for sure and lot premiums most of the time. How much each is willing to budge is dependent on the builder but be firm with your ask and have an experienced realtor help you.

[new to this]

Thank you Haudi for that insight.

[new to this]

96tahoe that's very true. Firethorn has a tax rate of 3% as well. I'll have to do some more digging to see if the most recent subdivisions are 3% and up.

[Mr. Football]

Developers must establish new MUD's and WCID's to provide utilities to their new communities. In order to do this, they have to float large bonds with hefty debt service. That cost is passed on to the residents of the growing community. Over time, and it may take a decade or more. Those rates will come down some...but they'll still be higher than those in established communities.

We looked at some of the newer communities and were shocked at how high property (i.e. MUD) taxes were in some of these developments. In the end, we built a new home in Cypress with Coventry Homes in the Enclave at Longwood. Because this new neighborhood was annexed into an established community (Longwood) water district (MUD 365), our rate is just 2.65% (which is effectively around 2.4% when you factor in CFISD's exemption).