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Old 11-27-2007, 12:49 PM
 
69 posts, read 293,130 times
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I am planning to buy a new house in houston. About $250,000, the builder has a price, usually how much can I negotiate down the price?

I heard that the realtor can get 6% from the builder, is that right? Thank you!
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Old 11-27-2007, 01:45 PM
 
Location: Houston
241 posts, read 1,140,441 times
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The Realtor gets 3% from the builder plus any Realtor Bonus that the builder is offering on old completed inventory (Sometimes, but rarely, on build sales). Negotiating with a builder is much easier on completed inventory than it is on non-completed inventory. Where are you looking and what builder are you talking to?
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Old 11-27-2007, 02:25 PM
 
69 posts, read 293,130 times
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Quote:
Originally Posted by Rick4Life View Post
The Realtor gets 3% from the builder plus any Realtor Bonus that the builder is offering on old completed inventory (Sometimes, but rarely, on build sales). Negotiating with a builder is much easier on completed inventory than it is on non-completed inventory. Where are you looking and what builder are you talking to?
Thank you! I interested in a non-completed inventory in Sugar Land.
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Old 11-27-2007, 02:34 PM
 
Location: Houston
241 posts, read 1,140,441 times
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Are you looking in Telfair? I believe that is the only community building in Sugar Land city limits. It just depends on the quality of a home you want. You can negotiate sometimes up to $50,000 off the builder with poor products... which in the end when you try to resell the home you'll realize that you paid just what the house was worth... they only marked up the price and tricked you into thinking you got a huge discount. Go with the highest quality product you can get for your money.
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Old 11-27-2007, 03:55 PM
 
69 posts, read 293,130 times
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Quote:
Originally Posted by Rick4Life View Post
Are you looking in Telfair? I believe that is the only community building in Sugar Land city limits. It just depends on the quality of a home you want. You can negotiate sometimes up to $50,000 off the builder with poor products... which in the end when you try to resell the home you'll realize that you paid just what the house was worth... they only marked up the price and tricked you into thinking you got a huge discount. Go with the highest quality product you can get for your money.
Really? You mean I can get 20% off in Houston?
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Old 11-27-2007, 07:47 PM
 
18 posts, read 101,038 times
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Quote:
Originally Posted by truelies View Post
I am planning to buy a new house in houston. About $250,000, the builder has a price, usually how much can I negotiate down the price?

I heard that the realtor can get 6% from the builder, is that right? Thank you!
Builder don't like much to negotiate the sale price as it can impact their future sales. You can get a nice discount on sale price on inventory though.
But more importantlty, you can get lots of incentives on things that is 'invisible' to future buyers: closing costs taken care of, buy down of the interest rate, HOA dues taken care of for couple of years, extra upgrades to the house
Try to find the items that don't cost much to the builder but have lot values to you personally. When you negotiate 10K off the buying price, the seller loose 10K. But if you can find an item that costs 10K to the builder but worth 30K to you, then you hit the jackpot. typically that happens with upgrades, or any type of labor work since they have the guys on site if they re building other houses in the subdivision, so that type of work cost them less that it would cost you to have done later.
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Old 11-29-2007, 04:30 PM
 
7 posts, read 22,803 times
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I just saw this. I am a Realtor and contrary to public belief the builder is the seller and does not do anything in the interest of the buyer as you would think they would. Yes you can try to negotiate the price and perks but they like a car dealership have their bottom line and normally don't budge. Representation by a Realtor while purchasing a new build goes a long way on your behalf as things come up during the building/construction process. There are many things that new homebuilder sales persons do not relay to you such as the difference in the impact of your taxes on a new build versus purchasing an inventory home. I wouldn't recommend you going unrepresented.

For the money you want to spend on a home you really want to make sure you get the right product in a subdivision that is appreciating which the builder will always tell you that they are and it may not be true.

The commission that is paid to the Realtor is already set aside by the builder from their funds because Realtors generate a lot of business for builders; the commission is generally 3% unless they have some type of special going on.

Best wishes
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Old 11-29-2007, 07:04 PM
 
18 posts, read 101,038 times
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so if I understand well, if you show up without a realtor, then you can probably obtain 3% of the value of the house in upgrades and such, because the funds are already set aside


Quote:
Originally Posted by ysmith View Post
I just saw this. I am a Realtor and contrary to public belief the builder is the seller and does not do anything in the interest of the buyer as you would think they would. Yes you can try to negotiate the price and perks but they like a car dealership have their bottom line and normally don't budge. Representation by a Realtor while purchasing a new build goes a long way on your behalf as things come up during the building/construction process. There are many things that new homebuilder sales persons do not relay to you such as the difference in the impact of your taxes on a new build versus purchasing an inventory home. I wouldn't recommend you going unrepresented.

For the money you want to spend on a home you really want to make sure you get the right product in a subdivision that is appreciating which the builder will always tell you that they are and it may not be true.

The commission that is paid to the Realtor is already set aside by the builder from their funds because Realtors generate a lot of business for builders; the commission is generally 3% unless they have some type of special going on.

Best wishes
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Old 11-29-2007, 08:59 PM
 
Location: where nothin ever grows. no rain or rivers flow, TX
2,028 posts, read 7,823,451 times
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Quote:
Originally Posted by jptexas View Post
so if I understand well, if you show up without a realtor, then you can probably obtain 3% of the value of the house in upgrades and such, because the funds are already set aside

thats what I got skipping the realtor. you have to ask the builder rep what would be the advantage if you skip the realtor. trigger her untrained sales skills to spill all the possible discounts
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Old 12-01-2007, 12:12 PM
 
7 posts, read 22,803 times
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No. The Realtor commission is separate from any perks the builder may offer to a buyer.
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