Negotiating at Meridian Circle C (Austin, Howe: sales, how much, new home) - Texas (TX) - City-Data Forum

meridianhomebuyer · 05-03-2009, 09:10 PM

Has anyone had any success at negotiating the base price at Meridian Circle C?
We are interested in Wilshire and they say they do not negotiate on the base price.

llkltk · 05-03-2009, 10:14 PM

In this economy they certainly should negotiate. They still have many lots available out here. Are they offering you incentives? If so, how much? Newmark and Meritage both negotiate off of base pricing. I think that they are probably just telling you a story. Just come up with a number and propose it. But, I don't know what the incentives are, if they are fabulous then they might have decided not to discount the base price of the house. Let me know what incentives they are offering you. We love it out here, let me know if you have anymore questions about the neighborhood. Also, I would just refer to it as Meridian because Circle C people hate it being called Meridian at Circle C. It's not a part of Circle C. Different HOA, etc.

meridianhomebuyer · 05-04-2009, 07:52 PM

Thanks for the input. Actually we talked to both Meritage and Wilshire and they both said that they won't negotiate on the base price since they are doing really well at Meridian and each has only about 11 lots left. Meritage is offering 28K in free upgrades while Wilshire is offering 20K in free upgrades. Would you consider these fabulous enough to not to negotiate on base price? I have not made any offer yet. But I will definitely try negotiating. I am just trying to get a feel for how much lower than the quoted base price to start.

llkltk · 05-04-2009, 08:35 PM

Maybe things have changed or maybe they are just trying to make more money because the resales are selling faster in here than the new homes. Meritage in late 2007 was offering 3% off base and about 25K in upgrades. 20K seems okay, you could probably tell them that Meritage is offering 28K and get them to match that or even better it, say 30K. Upgrades add up fast. Which floorplan are you looking at? Personally, I think Wilshire is a better builder than Meritage, the homes are more unique. The Meritage homes out here are a dime a dozen, the exterior all look the same.

llkltk · 05-04-2009, 08:36 PM

Also, there might be more lots because Newmark might be selling their lots off to Wilshire or Meritage.

achtungpv · 05-05-2009, 08:17 AM

We actually went to look at Meritage in Meridian a few months ago. The offer was $25K in upgrades. While driving us around to look at available lots, without prompting, he upped it to $30K and no charge for one of the greenbelt lots. So, I would think if push came to shove, you could get a bit more.

Also, for one of the other builders (can't remember which one), the model appears to already have foundation problems. It's the model that has wainscoting upstairs in the front. The seam has split in the wainscoting and if you look out the window, you can see a vertical crack alongside the brick and mortar from the window sill on down. I'd be wary of that.

austin-steve · 05-05-2009, 08:53 AM

Quote:

The offer was $25K in upgrades. While driving us around to look at available lots, without prompting, he upped it to $30K and no charge for one of the greenbelt lots.

Be careful assigning dollar value to upgrades. Builders make their highest markup on upgrades, so when they say $30K, and you think of it as $30K, you're failing to recognize that the builder is only paying $12K cost in order to get you to think you've received a $30K dicount or "free" upgrade. Stick to base price, just as you negotiate a car purchase price before talking about trade-in value.

But the other thing you are failing to mention is that the discount is an irrelevent number. Your agent should perform a market anaylsis on the house you want and you should decide what you think a good price would be and make your offer. The asking price doesn't matter, at all, so therefore, the "discount" is just a fictional number on paper or in your head that means absolutely nothing.

The best comps are resale homes of similar size and finishout, because that's what your home will be worth the day you move in, not what the new ones are selling for or what you pay for yours.

If you're serious, and ready to write an offer, tell your agent to let the sales rep know you want to put an offer in writing, and ask the sales rep to please run it through the coprorate office. You have to be willing to walk away a few times. If they don't call you back, then you know that the builder isn't worried about losing you, which means they are in fact not having trouble selling homes and you're barking up the wrong "discount" tree.

Steve

txgolfer130 · 05-05-2009, 09:28 AM

Quote:

Originally Posted by austin-steve

Be careful assigning dollar value to upgrades. Builders make their highest markup on upgrades, so when they say $30K, and you think of it as $30K, you're failing to recognize that the builder is only paying $12K cost in order to get you to think you've received a $30K dicount or "free" upgrade. Stick to base price, just as you negotiate a car purchase price before talking about trade-in value.

But the other thing you are failing to mention is that the discount is an irrelevent number. Your agent should perform a market anaylsis on the house you want and you should decide what you think a good price would be and make your offer. The asking price doesn't matter, at all, so therefore, the "discount" is just a fictional number on paper or in your head that means absolutely nothing.

The best comps are resale homes of similar size and finishout, because that's what your home will be worth the day you move in, not what the new ones are selling for or what you pay for yours.

If you're serious, and ready to write an offer, tell your agent to let the sales rep know you want to put an offer in writing, and ask the sales rep to please run it through the coprorate office. You have to be willing to walk away a few times. If they don't call you back, then you know that the builder isn't worried about losing you, which means they are in fact not having trouble selling homes and you're barking up the wrong "discount" tree.

Steve

+1

Any talk is just that to the sales guy. If you're serious, tell him your submitting an offer. It will be this much, and that your agent will be sending it over by the end of business. *** You must be prepared to walk away *** Right now Austin is really just starting to feel the pinch, but recovery will start by the end of hte year so your time-frame will be short-lived in Austin. However, don't let that scare you into paying more than what the market is pricing in. The builders want to use leverage any way possible to make the prices stick, but when push comes to shove, if they want to sell then they will.

And above all, be pre-qualified w/ a complete qualification ready to go, before you do anything. The leverage is on your side.