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Joe, I'm not going to agree with you when you say that builders won't negotiate on presales! I ALWAYS get free upgrades or free lot premium or more in closing costs but I always get SOMETHING EXTRA FOR MY CLIENTS!
ALWAYS!
Vicki
Perhaps I should clarify what I mean when I was no negotiations on pre-sales...
The base price of the home will not change. For example if the home you are looking to build has a base price of $200,000, the builder isn't going to budge on the base price of the home. If an incentive is currently running, say like $5,000 in free options, in my mind thats just the current promo. Not negotiating on price. Builders are not going to build you the same $200,000 home from scratch for $185,000.
Perhaps I should clarify what I mean when I was no negotiations on pre-sales...
The base price of the home will not change. For example if the home you are looking to build has a base price of $200,000, the builder isn't going to budge on the base price of the home. If an incentive is currently running, say like $5,000 in free options, in my mind thats just the current promo. Not negotiating on price. Builders are not going to build you the same $200,000 home from scratch for $185,000.
I'll agree...the base price stays the same but they may give more "free" upgrades or not charge a lot premium or even pay more closing costs!
You are right...not even I would ask them to go below base price!!!
Just curious but why are you against getting a buyers agent?
We aren't...we just weren't really househunting when this process started. We planned on looking & waiting but as things have unfolded, it occurred sooner than we thought. At this point, we're pretty well educated & well researched & although I know it may look like a flaw, are choosing not to get our own agent right now. Like I said, we're open to it depending on what happens.
But did ya really think I would stay away from a "new construction" post?
First things first, if you have already signed the paperwork you could bring in a buyers agent but keep in mind that M/I is going to fight against paying them a commission since they (your agent) were not with you from the get go.
Secondly, haveing a buyers agent is a great idea. Just keep in mind that agent or not most (if not ALL) new home constuction companies (local or national) do not negotiate on pre-sales. It's simple dollars and cents. The builder does not have anything invested in a raw piece of land so there is no reason that the builder should reduce their pricing on something that hasn't been built. You want to negotiate, look at standing inventory. There is a LOT more room for negotiations on homes that are built just waiting for owners.
Something else I would like to mention. It's not uncommon for builders to tie closing costs to their lenders. It's no different than if you went to Macy's and they offered to give you an additional 20% off your purchase if you put everything on your Macy's card. You do not HAVE to put it on your Macy's card (use the builders lender) but if you do there is an additonal bonus for you, the 20% off (or the closing costs). Again, there is nothing or anyone that is FORCING you to use the builders lender. It's your choice, but as a thank you for chosing the builders lender you get some additonal monies for closing.
Good luck with your new purchase. M/I is a great company and I know their on site agents are top notch.
Thank you so much for your advice! We did negotiate where we could & are happy with the result. Also, believe me when I say the builder's lender was very helpful & informative initially...I was relieved that he wasn't treating me like I had 3 heads asking as many questions as I did. But finding a good rate/payment/institution is top of our list as far as a loan goes. Thank you for the solid M/I reassurance...it's pretty obvious to us once we toured their homes & development that they are top-notch & their agent has been as well!! Takes a bit of the anxiety out of process, thankfully.
Cleave, are you buying in Madison Glen in North Durham? It sounds like the exact community you are talking about, around 150 homes, about half built out. My parents have a home being built there as we speak, should be ready in July!
We aren't...we just weren't really househunting when this process started. We planned on looking & waiting but as things have unfolded, it occurred sooner than we thought. At this point, we're pretty well educated & well researched & although I know it may look like a flaw, are choosing not to get our own agent right now. Like I said, we're open to it depending on what happens.
Even if you were comfortable going alone, just bring a buyer's agent along for the ride who will rebate part of their commission back to you and make money on the deal. [As Big Joe said, probably too late at this point].
Videotape the entire construction process. I did this and it has been very valuable to go back and be able to see where wires, pipes, etc. are running through the house.
This is an outstanding idea. I took pictures almost daily to document the progress and know where stuff was (wires, pipes, etc.). I also agree you need to be on site daily to monitor progress and to note anything that doesn't look right. I had a builder tell me he wouldn't allow me to be on site and I told him to take a hike. It's your money so protect your investment so be sure they are doing it correct.
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