Buying Home. Does anyone know if William Lyon negotiates? (home builders, landscaping)

[Jkgourmet]

Originally Posted by sandy6879

From my understanding - if you go to a new development without a realtor, you can't add one to the process after. You need to go in with a realtor in the first place. This may be wrong but this is what every realtor in every networking group I've been to has said. You may want to go to a different neighborhood with a realtor to start the process. The ones you've already signed into without one, you're pretty much on your own with.

Depends on the builder and the market. For example, Pulte holds pretty tightly to that rule in their 55+ Del Webb communities. Limited supply of that kind of housing and big demandatory allows them to be restrictive. But not so much in their other communities.

[SMG]

Originally Posted by sandy6879

From my understanding - if you go to a new development without a realtor, you can't add one to the process after. You need to go in with a realtor in the first place. This may be wrong but this is what every realtor in every networking group I've been to has said. You may want to go to a different neighborhood with a realtor to start the process. The ones you've already signed into without one, you're pretty much on your own with.

yes and no. Many require that, some will allow you to add your agent later. They want to sell homes, they do not always have that rigid of a policy about it. Some do and some don't. But, any fees paid to an outside agent are paid by the builder. They are never paid from the buyer to the agent.

[AZ Manager]

By negotiating on the price the builder devalues the previously sold homes and the ones coming up so it is very rare for a builder to do that. What they may do is toss in some upgrade money for cosmetics but even that is rare. Mostly what you will find is closing costs paid for, all or in part, by using their lender and maybe even a better than average rate which could be a pretty big incentive and save you thousands. If they paid $7k toward closings you could use that money to put down and get it within your budget; very bad advice but some people want to push the limits of their budget for no good reason.

[webbyguy]

Originally Posted by AZ Manager

By negotiating on the price the builder devalues the previously sold homes and the ones coming up so it is very rare for a builder to do that. What they may do is toss in some upgrade money for cosmetics but even that is rare. Mostly what you will find is closing costs paid for, all or in part, by using their lender and maybe even a better than average rate which could be a pretty big incentive and save you thousands. If they paid $7k toward closings you could use that money to put down and get it within your budget; very bad advice but some people want to push the limits of their budget for no good reason.

Thanks for the tip. If the closing costs don't add up to $7k in your example, then it could still go towards points, prepaid taxes, etc, but not directly toward the downpayment right?

[Jkgourmet]

Originally Posted by webbyguy

Thanks for the tip. If the closing costs don't add up to $7k in your example, then it could still go towards points, prepaid taxes, etc, but not directly toward the downpayment right?

Umm, if $7k is making that big a difference, maybe you need to lower your budget? Seriously consider buying an existing home?

[SMG]

One thing to be careful of, I had this situation awhile back. Builder advertises they will "pay X% towards closing costs". Make certain it is only your closing costs and not theirs as well. Yes, the builder will have closing costs too. Another thing to look out for..what happens if by some chance the property does not appraise for sales price? Are you picking up the balance? Splitting it with the builder? is there a clause where you can walk?These things can occur, as well as a host of other things.....all good reasons to be represented because the sales guy in the office works for them and has their best interest at heart.

[AZ Manager]

Originally Posted by webbyguy

Thanks for the tip. If the closing costs don't add up to $7k in your example, then it could still go towards points, prepaid taxes, etc, but not directly toward the downpayment right?

You won't normally have an option to buy points using their program it is pretty strict. Basically the builder "buys" a bunch of loans with fixed rates and concessions from the lender and the lender gives them to you so the builder technically isn't giving anything it is all from the lender. Those programs shouldn't go toward prepaids but sometimes the program may (my loan from Dec they did pay some of my taxes); prepaids aren't closing costs. It won't ever go toward the down payment.

[SMG]

If speaking with the lender and getting that okay, I would ask to specify in the contract that $7k will be applied to prepays AND closing costs, not just closing costs.

[webbyguy]

Originally Posted by Jkgourmet

Umm, if $7k is making that big a difference, maybe you need to lower your budget? Seriously consider buying an existing home?

Let's say I'd rather it be my $7k than theirs.

[webbyguy]

Originally Posted by webbyguy

Let's say I'd rather it be my $7k than theirs.

Originally Posted by SMG

One thing to be careful of, I had this situation awhile back. Builder advertises they will "pay X% towards closing costs". Make certain it is only your closing costs and not theirs as well. Yes, the builder will have closing costs too. Another thing to look out for..what happens if by some chance the property does not appraise for sales price? Are you picking up the balance? Splitting it with the builder? is there a clause where you can walk?These things can occur, as well as a host of other things.....all good reasons to be represented because the sales guy in the office works for them and has their best interest at heart.

The last time I bought a new home the rate of the loan from the lender recommended by the builder was so high it wasn't worth the extra incentive money. We went with a different lender. It is good to know that it is possible for them to have as good an offer. Hopefully the situation won't be like last time.