builders offering huge incentives: can you get more? (agent, price, value)

[Go Blue 99]

I have a couple of questions for anyone here that has dealt with builders, especially in the current market:

1) A lot of builders are advertising promotions for big discounts off the list price. In your experience, are builders willing to negotiate even more? Or do they generally stay firm when already offering a large discount as part of a promotion?

2) I've read that builders earn a very high profit margin on upgrades. As a buyer, are you more likely to get more if you want upgrades instead of a direct price discount? e.g. asking for $35k in free upgrades instead of a $20k price discount.

I know it will vary by location and builder but just wanted to see if anyone has a general idea.

[shellytc]

Go Blue, it is really going to depend on where you are, and who the builder is and what stage they are in development, etc. Generally speaking, builders like to hold the value of the nieghborhood and prefer to give the upgrades versus the price drop, however if it is a spec house, standing inventory and they are losing money every month on the house, they want it sold.

Shelly

[walidm]

Originally Posted by shellytc

Go Blue, it is really going to depend on where you are, and who the builder is and what stage they are in development, etc. Generally speaking, builders like to hold the value of the nieghborhood and prefer to give the upgrades versus the price drop, however if it is a spec house, standing inventory and they are losing money every month on the house, they want it sold.

Shelly

Agreed, and in which case (Standing inventory) get with a good agent and negotiate price and upgrades.