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Old 10-14-2008, 04:30 PM
 
10 posts, read 22,125 times
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Just bought a ready to move in new house in Cinco Ranch SW. The builder is Trendmaker. My agent told me Trendmaker's rule is 4% off listing price when negotiating. Somehow I believed him and then I made an offer and bought the house at the price $22000(7%) lower than the listing price. When I talked with a friend, he told me he bought his brand new house $40000(13% in his case) lower than the listing price one year ago from another builder. I regret my purchase. The house's location is relatively good because it is just a few houses away from a lake, new recreation center and new school, though. Do I pay too high?
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Old 10-14-2008, 05:19 PM
 
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It's impossible to know how much the builder would have taken off. Sometimes they take off more when the house has been sitting there for a long time. Sometimes they take off more if the house has something less desirable about it, like it backs up to a busy street or has an ugly brick color that the original buyer picked out. Sometimes they take off more if it's close to the end of the month, quarter or year and you're able to close in time to be counted in their numbers for the month, quarter or year.

Also, they can take more off when you don't use a Realtor because they aren't paying that commission.

Your Realtor should be able to tell you what the other houses in the neighborhood recently closed for so you can compare. Remember, it's a Buyer's market right now.

Have you closed yet?
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Old 10-14-2008, 05:34 PM
 
Location: Houston, TX (Bellaire)
4,900 posts, read 12,720,429 times
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Unless your friend bought a Trendmaker home in Cinco Ranch SW near a lake and a rec center then his results have no bearing on yours. For all you know his builder marks their houses up more so as to give a bigger "discount" when negotiating.
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Old 10-14-2008, 05:35 PM
 
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Thanks for your reply.

Not yet. We just made the offer last weekend and the seller said our offer is 3% lower than what they expected but because it's the end of the quarter he accepted it without hesitation. We signed the contract and put $2500 earnest money. Can we negotiate again with the builder or back out?
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Old 10-14-2008, 05:40 PM
 
18,267 posts, read 7,848,628 times
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It's a strong buyer's market right now. You probably overpaid but ya never know. You probably should have been more aggressive in your offer. Keep in mind that listing and seller agents have a fiduciary duty to get the highest price possible, Even buyer agents have a vested interest in getting a higher price. And all have an interest in a quick sale.
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Old 10-14-2008, 05:56 PM
 
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Without seeing your contract, I'd say that you could back out any time before closing and just lose your earnest money. Ask your Realtor to know for sure.

And some builders will let you cancel a contract and still get your earnest money back. Did your Sales Person say the earnest money was refundable if you change your mind?

You could try to negotiate by threatening to cancel the contract, but I think you need to have a good idea of what the house is worth before you negotiate. You could be already getting a great deal and the builder won't take you seriously if you can't justify why the house should be priced lower. Ask your realtor to look at what similar houses in the neighborhood closed for recently.


It sounds like you're getting a nice house and you were happy with it until a friend made you feel like you could have gotten a bigger discount.

Just because someone else got a bigger discount in a totally different situation doesn't mean you're getting ripped off. Every house is different, every situation is different. Don't let your friend's deal alone make you feel like you didn't ask for enough off.

Good luck!
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Old 10-14-2008, 05:57 PM
 
18,267 posts, read 7,848,628 times
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Just to clarify before the buyer agents out there jump on me. The lowest price is not the only (or even primary) concern of a good buyer agent. The most important thing is that you will be happy with your new house for many years to come. If you've fallen in love with a house and end up losing it because your agent suggested a lowball offer then they failed you. So while I might have been more aggressive in my offer, it's just really hard to tell from a distance.

If you really like the house then close the deal and stop second guessing your offer. In the long run, whether you could have paid a few thousand less or not is insignificant.
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Old 10-14-2008, 07:54 PM
 
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Thank you all for the responses.

I don't know if I'm experiencing buyer's remorse. Actually we like that house. We moved here in the begining of September. After house hunting for a month, this is the first house that both of us fall in love with. There are lots of new houses being built in Cinco Ranch SW now. We visited different builder's office for info and looked quite a few houses that are ready to move in. Most builder's price is about $88-$95/sf after discount. our's is $102/sf after builder's discount, and end up with $98/sf, a little expensive but I guess we will enjoy this house in the future.
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Old 10-14-2008, 08:12 PM
 
Location: Katy,TX.
3,810 posts, read 7,779,104 times
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Quote:
Originally Posted by Ross123 View Post
Thank you all for the responses.

I don't know if I'm experiencing buyer's remorse. Actually we like that house. We moved here in the begining of September. After house hunting for a month, this is the first house that both of us fall in love with. There are lots of new houses being built in Cinco Ranch SW now. We visited different builder's office for info and looked quite a few houses that are ready to move in. Most builder's price is about $88-$95/sf after discount. our's is $102/sf after builder's discount, and end up with $98/sf, a little expensive but I guess we will enjoy this house in the future.
My wife and I had a house built in Cinco Ranch, although we decided to pull out and buy elsewhere, I sometimes wish We could have had the same house(we currently live in) in the Cinco Ranch community(we did not want to pay the extra money for that).

The point of my story is either way you're always going to wonder "what if" after you buy your home.
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Old 10-15-2008, 06:36 AM
 
958 posts, read 2,374,327 times
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You have a few options, as you stated you just put a contract down and haven't closed. Read the termination option for the builder in the contract. Usually it is about 1/2 your earnest money if you were to ack up.

What you can do if your really aggressive is threaten to back out, unless they give you more incentives or lower the price of the home. Just gotta go through with it though and basically willing to walk away from the home. 1250 or even 2500 is not much to lose when your spending 200+ on new homes these days, when you can potentially save thousands more if your aggressive.

Hell it might work.
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