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.
A while back I read a posting/article with a list of items that buyers could for when placing an offer on a house. The intent was for the house to have a high selling price on the tax records, but when it was all over and done with they would have gotten discounts (b/c of the extras the seller paid for).
It was mentioned in the context of buying a home in a neighborhood, where the builder can't afford to greatly discount the house b/c of how it would make those that first moved into the neighborhood unhappy. But b/c the builder needed to lessen debt carrying on homes already built, they might be willing to do these things to sell the house (and keep the previous buyers happy too).
The typical things a seller could be asked to pay for...
home warranty
repairs
closing costs
???
Additional items asked of the seller...
swimming pool
upgrades
???
Interested in reading what you've heard about or even experienced being asked for as an extra during negotiations while selling a house. Or, if you've got a link to a similar article, I'd appreciate it too!
Location: Danbury CT covering all of Fairfield County
2,636 posts, read 7,435,786 times
Reputation: 1378
Some builders up here that are have a couple of townhomes left in their communites to sell are offering 2 years of common charges and 2 years of property taxes to be credited to the buyer at closing.
My question to this is... what if you custom build a house? Is there anything you can ask for (other than the builder paying for all the closing costs), that they will "throw in" or are your chances slim to none since you're "ordering" the house rather than buying an excisting home?
Having a custom built home limits your bargaining power. Most builders are willing to work with buyers on homes that they have already completed but have not yet found a buyer for. They are paying interest on these homes and want to get them out of inventory so that they can continue to build.
How much a builder is able to work with you on a custom built home really depends on what you're looking for. If you want a third floor, for instance, and the neighborhood you are building in does not have third floors, the builder is actually taking a risk to build that home for you. What if you change your mind? Will the builder be able to sell that home to another buyer? Will he have to take a loss to do it? The more custom the home, the lower the bargaining power, and the higher the deposit required.
The advantage of having a custom built home is that everything in it is EXACTLY what YOU want, up to your budget of course - but it may not be exactly what the general market wants, or what is cost effective for the builder to build.
Kind of like special ordering a souped up mustang instead of buying last year's model that the dealership is offering incentives on!
A while back I read a posting/article with a list of items that buyers could for when placing an offer on a house. The intent was for the house to have a high selling price on the tax records, but when it was all over and done with they would have gotten discounts (b/c of the extras the seller paid for).
It was mentioned in the context of buying a home in a neighborhood, where the builder can't afford to greatly discount the house b/c of how it would make those that first moved into the neighborhood unhappy. But b/c the builder needed to lessen debt carrying on homes already built, they might be willing to do these things to sell the house (and keep the previous buyers happy too).
The typical things a seller could be asked to pay for...
home warranty
repairs
closing costs
???
Additional items asked of the seller...
swimming pool
upgrades
???
Interested in reading what you've heard about or even experienced being asked for as an extra during negotiations while selling a house. Or, if you've got a link to a similar article, I'd appreciate it too!
It could be anything really....just depends on each builder and how hungry they are right now. Could be the lot premium, upgraded stairs in the home, hardwood, bump out of the living room, etc, etc....
It could be anything really....just depends on each builder and how hungry they are right now. Could be the lot premium, upgraded stairs in the home, hardwood, bump out of the living room, etc, etc....
Any ideas for houses that are completely finished?
Any ideas for houses that are completely finished?
In fact erineieio, you have significantly MORE leverage with the builder on a home that is completely finished. Once that house is done it is sitting inventory...and more importantly they now KNOW what their costs are, which makes it much easier for them to figure out how far they'll go. They are also making monthly interest payments on their construction loans so they have some motivation to move the inventory.
While you won't get far asking for upgrades that would require additional construction work, you CAN ask for other things; as an example - central air conditioning (most homes today are built ready, and its about a $3000-4000 upgrade), backyard landscaping/fencing, and/or closing costs, or even for the builder to make the first one or two months of your mortgage payment for you - from an escrow account.
A builder is like any seller in terms of negotiating, except that to them its purely business (no emotional attachment to a home like other sellers can have). Expect them to negotiate hard (they are business people!)...but their decisions are very rational and look at the market and the bottom line.
Any ideas for houses that are completely finished?
If the house is completely finished, the easiest thing to negotiate is money. And if the builder is opposed to the idea of lowering the actual purchase price, there aren't a ton of options, but a few. Perhaps the builder will pay the real estate taxes for some period of time. If the house is in a community with a HOA, maybe the builder will pay the HOA dues for a year or two.
As to some extras for which you could ask. Is the basement finished? Perhaps you've always wanted a little wine cellar? Wouldn't the deck be a lot more comfortable & usable with a motorized retractable awning to cover it? Maybe the garage would benefit from one of those storage & shelving systems and a layer of floor sealant paint with non slip texture chips.
Of course, the bank or mortgage company may not be thrilled with an arrangement that shows a higher price than the house is actually worth in this market. Whatever you do, make sure that the property will appraise properly for the mortgage. Despite what the builder wnats to show as a sale price, he may just have to drop it if he wants to sell.
No matter what type of deal you make, the house still has to appraise for the selling price, or the lender won't make the loan. 2005 is over. Lenders and appraisers have to be more realistic.
Bill
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.
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.
Its all about leverage
