First Home Buyer: Few Questions regarding negotiations (Plano, Frisco: sales, real estate)

[dallas_cowboy]

We have looked around in Frisco and Plano area and found First Texas Homes / Grand Homes (Traditions of Frisco) in North Frisco and East Plano (Trails of Glenwood). Both places have both builders with their homes in 300's for 3500sq ft or above.

Questions:
1. I read few previous posts about Grand Homes builder and seems a trouble inviting construction company, but could not get much details why ppl think this way about them.
2. In this market, how much (in percentage) I should expect builder to go down from their listed base price and upgrade price? I am open to build my own home with some customization or can purchase ready to move in home. So I like to know negotiation range for both options.
3. Some lots include lot premium, is that a builder's pricing gimmick?
4. How much should I put on a side for all other expenses (such as closing cost, home inspection etc)?
5. Do builder consider paying certain percentage to buyer's real estate agent? If so, how much do they already include in their pricing?

I know many ppl on this forum think West Plano has a better schools, so recommend to buy old homes. But I am right now interested in buying a new home in my price range.

Thanks a lot for your time!

[SouthernBelleInUtah]

Originally Posted by dallas_cowboy

We have looked around in Frisco and Plano area and found First Texas Homes / Grand Homes (Traditions of Frisco) in North Frisco and East Plano (Trails of Glenwood). Both places have both builders with their homes in 300's for 3500sq ft or above.

Questions:
1. I read few previous posts about Grand Homes builder and seems a trouble inviting construction company, but could not get much details why ppl think this way about them.
2. In this market, how much (in percentage) I should expect builder to go down from their listed base price and upgrade price? I am open to build my own home with some customization or can purchase ready to move in home. So I like to know negotiation range for both options.
3. Some lots include lot premium, is that a builder's pricing gimmick?
4. How much should I put on a side for all other expenses (such as closing cost, home inspection etc)?
5. Do builder consider paying certain percentage to buyer's real estate agent? If so, how much do they already include in their pricing?

I know many ppl on this forum think West Plano has a better schools, so recommend to buy old homes. But I am right now interested in buying a new home in my price range.

Thanks a lot for your time!

2. Not much if any due to hot market.
3. No, bigger lots are worth more.
4. Basic inspection around $300-400.
5. They have the commission built in their prices. If you come with a buyer's agent, they have to pay the standard 3% as far as I know.

[dallas_cowboy]

Originally Posted by SouthernBelleInUtah

2. Not much if any due to hot market.
3. No, bigger lots are worth more.
4. Basic inspection around $300-400.
5. They have the commission built in their prices. If you come with a buyer's agent, they have to pay the standard 3% as far as I know.

Thanks a bunch for your input!

Can you elaborate more on "not much" for 2nd answer? How much I can play in negotiation in percentage? (I guess from 5 to 15 percent of a total price?)

Does anyone know a good site (free or paid) which can provide me a detailed report on school districts and crime in the neighborhood?

[SouthernBelleInUtah]

When houses are selling like hotcakes, builders have no reason to discount prices. What they will do is offer some "free" upgrades. If they discount the price, it sets a "comparable" for future sales and they don't want that. I can't tell you what % in upgrades they might offer. You might get the bigger lot, my son did when he bought new.

[dallas_cowboy]

Originally Posted by SouthernBelleInUtah

When houses are selling like hotcakes, builders have no reason to discount prices. What they will do is offer some "free" upgrades. If they discount the price, it sets a "comparable" for future sales and they don't want that. I can't tell you what % in upgrades they might offer. You might get the bigger lot, my son did when he bought new.

interesting...... I was hoping to get some discount on base price as well. Upgrades pricing is always a lot higher than actual price you may have to pay if you hire your own contractor to do it. Bigger lot without a lot premium is a good upgrade that your son got.

How about if I decide to choose a home that builder has already built. Would they negotiate the price bit more compare to building your own home?

[nsumner]

Here are a couple of sites to get information about school information
Texas Education Agency - Welcome
GreatSchools - Public and Private School Ratings, Reviews and Parent Community
Texas Schools - Find a Public or Private Texas School - SchoolDigger.com

Grand Homes have some wonderful floorplans and designs. Don't be fooled by the model home, they usually include about 150K to 250K in upgrades. You have to upgrade everything including some structural items. They won't give you the prices of the upgrades upfront, only once you sign a contract, deposit earnest money and then make an appointment with the design center. They will let you go look at the design center before you sign a contract, but nobody will tell you what is standard or what is not and how much the upgrades will cost.

They will give you (depending on the community) 30K-40K to use for upgrades but believe me, that will so super fast because their upgrades are very expensive or as I say "Grand Prices". This is one of the things where they make a lot of money on.

In some communities, they will not let you use the money for the pool towards upgrades. You really don't want that 20K pool when you are building a 350K or higher home. It may actually decrease the value of your home.

As far as using a Realtor, you really need to have one on your side. Most builders have a marketing budget and having a Realtor or not will not affect your sales price. Builders spend a lot of money on training their salespeople to make you feel like you're getting a great value.

If you decide to go with them, make sure you have your own independent inspector that will do phase inspections and be present when the foundation is poored.

Naima

[GripeWater]

Builders are only negotiating significantly on spec homes or homes on undesirable lots, not budging much on rest. With everyone drunk on new house kool aid, they don't have to. People are ready to go beyond outskirts of the DFW and settle for any school district so builders don't have to negotiate significantly unless there is a reason.

[Keepingitsimple]

I wouldn't pick Grand but its your choice. I know people who ended up paying more than what they would've on Toll or KHOV.

[SouthernBelleInUtah]

Same problem with spec house. If they sell it as a discount, that's the new price for that model. Not what they want. Unlike buying a car, everyone and his cousin that has access to MLS (i.e., realtors) will know what you paid,

[sossie]

I would say no on the discount because of the DFW market-but that all depends where in DFW you are buying-we had two spec houses in our neighborhood that not only did they not decrease the price they actually increased them and then waited -one sat for over 8 months then sold and the other just went under contract in the past couple of weeks-no discounts...the base prices for homes by our builder have increased the prices 2/3 times since Dec..Premium lots command premium prices-oversized for the development-golf course lot-corner lot etc etc