Offer on new construction (Wake Forest: sale, appliances, new home)

[StMichael929]

I am about to put an offer on new construction. I was curious as to how flexible builders are with prices? Should I try low (I was thinking 8% below asking price) and work from there? Are they generally more willing or less willing to budge from the list price.

Thanks!

[dansdrive]

Anything is negotiable start on that premise. It depends on where the home is located and what price range you are purchasing in. Currently there is a glut of homes on the market here in the triangle that are over $400k and rising so if that is your range be aggressive in your offer. Remember the builder is holding the expense and you have the cash. You maybe pleasantly surprised what they may take. I read on other threads that builders like to move inventory at year-end so in a month or two you may have better chances. Also, the $700k and over have a 16 month supply according to an earlier post The market is just starting to drop in the triangle due to the national economy and the surplus of new home construction and existing homes on the market. Good luck.

[RLamothe]

You know I really think it depends on the builder. Some may just want to get rid of the house, others will hold onto it until they get FULL price. We made an offer on one house that had been on the market almost 200 days, we asked for 15K less than asking. Builder came back with full price or nothing. Too bad for him we didn't think the house was worth it, and I just checked his website and the house is STILL on the market. Good luck with making an offer...its such an exciting experience

[fester600]

My thought is that if the house is complete and just sitting there, they might do a deal, but if it is pre-construction or midway through construction they may not wheel and deal until it is complete.

Just my 2 cents thought

[coltank]

September is actually the end of the fiscal year for a lot of builders out there, so they may be a little more flexible at this point. Also, they will most always be more flexible on a home that is completed. Depending on the asking price, and whether it has been reduced yet or not, I may even offer lower than that. What's the worst that can happen? Either you go back and forth a little, or they could end up getting another offer in the meantime. It all depends on how bad you want it.

[southward bound]

I think on new construction builders are more likely to give you concessions and upgrades than lower the price because they don't want the record to show that their homes sold for lower than original asking. Holding the price firm allows them the hope of selling future homes for that price too. The buying public don't know whether he gave you a deal on something like an upgrade, or threw in something you asked for just to keep you happy and make the sale (which, in the end, is pretty much the same to your wallet as dropping he price).

[fester600]

I would agree with southward...

The sale price will remain the same, but you might be able to add in some free upgrades...

In my case I added a free screened porch and a post sale fence addition.

[jessie'smama]

I just purchased new construction in Wake Forest. We tried negotiating the price down but he wasn't going for it. We ended up paying full price but we are getting back money to use for whatever we want, i.e. appliances, closing costs. It made paying full price less painful.

Ilissa

[coltank]

Originally Posted by southward bound

I think on new construction builders are more likely to give you concessions and upgrades than lower the price because they don't want the record to show that their homes sold for lower than original asking. Holding the price firm allows them the hope of selling future homes for that price too. The buying public don't know whether he gave you a deal on something like an upgrade, or threw in something you asked for just to keep you happy and make the sale (which, in the end, is pretty much the same to your wallet as dropping he price).

This is more true for something like a pre-sale. If it is a completed home, they are generally not oging to want to do anything extra. They just want to unload the home so it is no longer on their books.

[VickiR]

It REALLY does depend on the builder AND the neighborhood.

If homes are selling fast, no need to reduce price or give free upgrades.

If homes are just setting there, builders MAY drop the price. The problem is that if you go into the model home as a buyer without a buyer's agent, the onsite person can tell you that they don't negotiate and you have no way of knowing if this is true or not.

Your Agent can check out these things on the computer from MLS. Also, if your Agent has some prior knowledge of the neighborhood or the builder, that helps.

Vicki