Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > North Carolina > Raleigh, Durham, Chapel Hill, Cary
 [Register]
Raleigh, Durham, Chapel Hill, Cary The Triangle Area
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-11-2008, 09:12 AM
 
Location: Durham, NC
1,364 posts, read 6,008,629 times
Reputation: 764

Advertisements

dinalkulp,

I just re-read your posts and it sound like this is the case:

Hypothetically, lets say you were paying 300k base for the house and 75k in upgrades before = $375k.

You've said with design incentives plus your negotiation they knocked off 50k from this price = your price = $325k


Now,

They have lowered base prices for your home by 19k - so lets say base is now $281k

With a lowering of base prices, I'd have to assume they haven't ADDED any standard features (and have maybe taken some away). To be conservative, let's say all features are identical.

So you have base price of $281k and your same 75k in options for a price of $356k. Lets assume you are still given the 10k off your grand morning room but the other amount of that 50k in incentives (the 40k design studio credit) you've said is no longer offered. Your price for the same house today is $346k.

By my count, you are in fact well ahead in this process, and rather than feel like you're getting screwed here, I'd encourage you to be ecstatic that you signed on the house when you did - your timing and negotiation was excellent.

You are not losing 19k in equity at all - you have tons of upgrades that add value to your home.
Reply With Quote Quick reply to this message

 
Old 06-11-2008, 09:15 AM
 
Location: Cary, NC
43,035 posts, read 76,548,777 times
Reputation: 45347
Quote:
Originally Posted by dinalkulp View Post
Yes, those incentives we received are gone so we most likely are doing better than someone coming in at the reduced base price.

According to our realtor, the starting price is for the simplest of the elevation for this home and they are only giving $5000.00 in incentives and have taken away some of the options that was with our offer. There is a different price for each elevation and our incentive package is gone. To get the lower price means giving up our incentives.
New home pricing is bounced around to create excitement.
It is not uncommon to see a $5,000 incentive pop up on the MLS and see the price increased $5,000 simultaneously.
If you have the lowest NET price achievable, you may have just caught a good deal, regardless of current advertising.
Reply With Quote Quick reply to this message
 
Old 06-11-2008, 09:17 AM
 
835 posts, read 2,870,100 times
Reputation: 382
Sneezecake, that's about right. Except the total with the morning room and other builder incentives totaled exactly 45K if that makes any difference.
Reply With Quote Quick reply to this message
 
Old 06-11-2008, 09:20 AM
 
Location: Durham, NC
1,364 posts, read 6,008,629 times
Reputation: 764
Quote:
Originally Posted by dinalkulp View Post
Yes, those incentives we received are gone so we most likely are doing better than someone coming in at the reduced base price.

According to our realtor, the starting price is for the simplest of the elevation for this home and they are only giving $5000.00 in incentives and have taken away some of the options that was with our offer. There is a different price for each elevation and our incentive package is gone. To get the lower price means giving up our incentives.
Yes - see my latest response. You owe yourself a pat on the back for having negotiated additional credit on an already great incentive at the right time.

In my earlier example of my own house search, the same thing happened to us except we were on the other end of the stick - base prices were reduced by 30k, but they also took away a 30k incentive. Had we jumped at the higher price with the higher incentive, we'd in the end have gotten more features for the same price as we're paying now.

(There are other variables that went into it, though, like lot availability....a lot came available that we chose that was significantly better than what we could have chosen previously, so it worked out)

But yes, had we gotten our current lot on the old, higher base price, with the higher incentive, we'd have been happy with ourselves even despite the fact that someone theoretically could buy a house now for the new lower base price - everyone puts in upgrades so don't worry about people undercutting you.
Reply With Quote Quick reply to this message
 
Old 06-11-2008, 09:25 AM
 
Location: Durham, NC
1,364 posts, read 6,008,629 times
Reputation: 764
Quote:
Originally Posted by dinalkulp View Post
Sneezecake, that's about right. Except the total with the morning room and other builder incentives totaled exactly 45K if that makes any difference.
Adjust my numbers by 5k, subtract from your net gain, and you still are definitely way ahead.

Your realtor is right that if you are going off an online quote saying something like "Bainbridge II Grand - from 279,900!" that price is for the base, siding-only home. If you have a brick front or anything other than the cheapest plan, then it's going to be more than that advertised price.
Reply With Quote Quick reply to this message
 
Old 06-11-2008, 09:33 AM
 
Location: Raleigh, NC
12,475 posts, read 32,140,626 times
Reputation: 9450
Wow...people that do math amaze me!

Like Mike said...builders do play around with the numbers quite often.

It does seem like the price you got is the best price...whether you are a buyer or a seller, it always comes down to the NET PRICE. Kinda like your paycheck. It is great to think that you make $5,000 a month but when you are budgeting and figuring whether or not you can afford to buy that new car, you must remember that you do not NET $5,000 per month. See? I can do sum figurin'!

Relax and enjoy your new home!

Vicki
Reply With Quote Quick reply to this message
 
Old 06-11-2008, 09:39 AM
 
835 posts, read 2,870,100 times
Reputation: 382
Thank you to everyone!! I feel much better about the whole thing now. I do love this forum!
Reply With Quote Quick reply to this message
 
Old 06-11-2008, 10:54 AM
 
11 posts, read 26,894 times
Reputation: 11
the builder is reacting to the market just like you did when you made the offer. You have no legal recourse, in fact the law is on the builders side. That does not mean you dont have leverage. If you are really willing to walk away from the deal, lose your deposit, but end up with a better deal and have a net win then that is your bargaining chip. Its a risk but in this market, the builder may not want to lose your business. It is definitely a buyers market out there so you may want to try your luck.
Reply With Quote Quick reply to this message
 
Old 06-11-2008, 10:57 AM
 
9,848 posts, read 30,195,887 times
Reputation: 10516
Quote:
Originally Posted by dinalkulp View Post
Thank you to everyone!! I feel much better about the whole thing now. I do love this forum!
I'm glad you feel better. Sounds like you got a great deal on the purchase and are coming out ahead no matter what. Kudos to you and your realtor for being all over this situation. Best wishes for a speedy and hassle free closing!

~ NRG
Reply With Quote Quick reply to this message
 
Old 06-11-2008, 12:06 PM
 
1,489 posts, read 5,677,439 times
Reputation: 553
The morale of the story...Now is a great time to buy, especially from builders, just have a good agent that can get you the best deal!
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:




Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > North Carolina > Raleigh, Durham, Chapel Hill, Cary
Similar Threads
View detailed profiles of:

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top