Housing Negotiation (Franklin: sales, real estate, HOA)

[Money_Is_Everything]

Hey,

In couple of weeks, I am thinking about signing a contract to buy new constructed house. Here is the catch, one of my other friend is also going to buy a house in the same subdivision. With housing market crashing down, and two potential buyer, what is the scope for negotiation?

Personally, I am thinking about getting all the upgrades that I can get (i.e all bricks, corner lot, hardwood floor, added squre feets etc), which will add additional 20 to 25G's in asking price. I am assuming that construction manager will waive off that upgrade cost. Having said that, Am I going on the right track? Is there any other decent method of negotiation?

Thanks

[alleycat]

It . . . depends. Just because the housing market in general is slow doesn't mean that every builder in every location is desperate.

Of course, it never hurts to try. You can make an offer based on the things you mentioned. The builder can then either accept, decline, or come back to you with a counter offer (which he probably will). Be aware that, just like when buying a car, you're dealing with sales experts. You might have to go back and forth through the process several times.

[mbmouse]

Get a buyers agent that works for you. The seller pays the commission so it isn't any out of your pocket. Do not use the sellers agent to do negotiations for you, their loyalty is to the seller. Yes, no matter what the builder says, you should have your own agent to represent you and only your best interests.

[goodbyehollywood]

I would negotiate for the things that are of benefit and importance to you, not what you think you can get. Builders have flexibility, but they have a bottom line number that they need to meet. There are many ways to get to that number and some will benefit your specific situation more than others. Upgrades, rate buy-downs, contribution to closing costs and x number of months of pre-paid mortgage or HOA dues are all possibilities that give you a cost break, while helping the builder maintain pricing integrity. If you let them do that-- and get a nice mix of concessions for yourself-- it will be a good deal for you both. The market is soft and there is room for negotiation, but if you demand too much, you may actually receive less. Nobody likes to be taken advantage of. Good luck!

[blueyes721]

Hi Money...
MB is correct. Get representation....it'll cost you no $$ and you will have the backing of a real estate broker in case of any issues....and believe me...there can be in new construction.
I was just out at a new development in Franklin today...talking to the 3 different builders..they all are saying ~just bring us an offer~.. and they are discounting with upgrades up to 20K if you go with their lenders. If you don't want any particular upgrades...they are accepting "any" offer. My motto is to ask for what you want....you have nothing to loose. In this market they are more willing to negotiate, for sure.