Is $10k below final list price too low for new construction? (new home, neighborhood)
Raleigh, Durham, Chapel Hill, CaryThe Triangle Area
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The onsite person is going to try to get the best price for the builder, since thats who he works for.
The ONLY WAY you'll have an understanding of WHAT they'll take is to have your buyer's agent look back to see what the houses have been selling for RECENTLY and what the LOWEST price has been.
Like Leigh, I ALWAYS ask.
Yes, plf86, they are REQUIRED to present all offers to the builder but sometimes they play head games with buyers because the onsite person NEGOTIATES all the time and they have the upper hand unless you bring in your buyer's agent.
Vicki
I'd add that they only have the upper hand if you let the decision and discussion become emotional. Just like a car, you have to be prepared to walk away from the deal if you don't get what you want. If you keep in mind that they need you more than you need them, you should be able to keep the negotiations balanced...but it takes quite an effort.
I'd add that they only have the upper hand if you let the decision and discussion become emotional. Just like a car, you have to be prepared to walk away from the deal if you don't get what you want. If you keep in mind that they need you more than you need them, you should be able to keep the negotiations balanced...but it takes quite an effort.
I agree...but...We are talking about a HOME and most buyers ARE emotional. And I'm not sure thats a bad thing. You should LOVE your home; however, when its time to negotiate, keep in mind that the sales associate does this at least 2-3 times A WEEK. The average buyer does this 2-3 times A LIFETIME. As a buyer, you need to even out the playing field. Take YOUR buyer's agent with you.
If you have a buyer agent, your agent should negotiate the price for you. If you don't have an agent, you should be able to lower the price by 2.5%, and explaing to them that you are not going to bring a buyer agent.
That should make absolutely no difference. Most builders pay Broker commissions out of a separate budget, and if they are doing that, they are upsetting Brokers who will bring them clients. Unless you have homes selling left and right, a builder can't afford to upset Brokers. And, I have heard of few neighborhoods that are selling this well.
I agree...but...We are talking about a HOME and most buyers ARE emotional. And I'm not sure thats a bad thing. You should LOVE your home; however, when its time to negotiate, keep in mind that the sales associate does this at least 2-3 times A WEEK. The average buyer does this 2-3 times A LIFETIME. As a buyer, you need to even out the playing field. Take YOUR buyer's agent with you.
Vicki
They may not have a buyer's agent. My comments don't assume that they do or don't. What if they walked into the property and orginally registered without a buyer's agent? If they have been dealing with the on site agent this whole time and didn't register one of their own, they are going to have to be prepared to be tough by themselves.
In the end, While I agree that buying a home is emotional, that doesn't mean you have to show those cards in the negotiation.
They may not have a buyer's agent. My comments don't assume that they do or don't. What if they walked into the property and orginally registered without a buyer's agent? If they have been dealing with the on site agent this whole time and didn't register one of their own, they are going to have to be prepared to be tough by themselves.
In the end, While I agree that buying a home is emotional, that doesn't mean you have to show those cards in the negotiation.
I wasn't disagreeing with you.
Most onsite sales associates realize that if they haven't been able to get a buyer to sign a contract and he then brings in his buyer's agent, they are going to be thrilled with the prospect of selling a house and don't care if he now has a buyer's agent. The housing market for new construction is slow this time of year anyway. Many times I've gone with my buyers back to a new home community that they've already been to and talked to the onsite sales associate and at no time have they ever been denied having a buyer's agent. Its all in experience and knowing what you are doing in this area.
I agree...but...We are talking about a HOME and most buyers ARE emotional. And I'm not sure thats a bad thing. You should LOVE your home; however, when its time to negotiate, keep in mind that the sales associate does this at least 2-3 times A WEEK. The average buyer does this 2-3 times A LIFETIME. As a buyer, you need to even out the playing field. Take YOUR buyer's agent with you.
Vicki
Buyers getting emotional about ANY consumer item automatically increases the likelihood of getting burned, ripped off, or worse. The whole thing about falling in love with a house is marketing dribble.
You fall in love with your girlfriend, wife, or kids. Not an inanimate object.
Buyers getting emotional about ANY consumer item automatically increases the likelihood of getting burned, ripped off, or worse. The whole thing about falling in love with a house is marketing dribble.
You fall in love with your girlfriend, wife, or kids. Not an inanimate object.
I'm going to totally disagree with you on this one. You are male. No offense but I'm telling you...as a female, I love my home! Its a known fact that women are much more emotional than men and when it comes to our HOME, we fall in love!
Lets hear from others...do you agree that you fall in love with your home???
I just paid $5000 under asking for new construction. I offered less, but-
My agent showed me that the builder has been able to stay within 2 to 3 thousand of asking prices on homes in the neighborhood, and he has sold everything in the neighborhood before it was completed while not dragging his feet. I offered a very quick close which helped me get to the $5K off.
The builder is a small local company with low overhead so they tend to price things aggressively out of the box. I think this has a lot to do with his success in a soft market. My agent didn't see the home we bought until after we closed on it. She was extremely impressed with what we got for our money, and at that point she had no interest in telling me anything but what she really thought. There are other builders in the neighborhood sitting with completed spec homes who have been selling some of their lots to my builder, and he just keeps putting up houses and selling them.
As a point of reference, the last house we lived in was a completed spec when we bought it in May 2003 for $30,000 under asking ($399,900 became $370,000). That house was built by a pretty good sized regional tract builder.
I just paid $5000 under asking for new construction. I offered less, but-
My agent showed me that the builder has been able to stay within 2 to 3 thousand of asking prices on homes in the neighborhood, and he has sold everything in the neighborhood before it was completed while not dragging his feet. I offered a very quick close which helped me get to the $5K off.
The builder is a small local company with low overhead so they tend to price things aggressively out of the box. I think this has a lot to do with his success in a soft market. My agent didn't see the home we bought until after we closed on it. She was extremely impressed with what we got for our money, and at that point she had no interest in telling me anything but what she really thought. There are other builders in the neighborhood sitting with completed spec homes who have been selling some of their lots to my builder, and he just keeps putting up houses and selling them.
As a point of reference, the last house we lived in was a completed spec when we bought it in May 2003 for $30,000 under asking ($399,900 became $370,000). That house was built by a pretty good sized regional tract builder.
You just made a very valid point...know the neighborhood.
I'm going to totally disagree with you on this one. You are male. No offense but I'm telling you...as a female, I love my home! Its a known fact that women are much more emotional than men and when it comes to our HOME, we fall in love!
Lets hear from others...do you agree that you fall in love with your home???
Vicki
I love my home, and I am male.
It is an inanimate object and it speaks to our consumerism that we "love" our cars, homes and other objects. Of course its not the same as a girlfriend, family member, etc.... but if it were just about meeting basic requirements we would all have the same car, the same clothes, the same shelter.
We spend a lot of time in our homes and it should entice a positive emotional response. Its a big decision you are going to have to live with for a long time. So while you should not buy on emotion alone (and end up buying a home you can not afford), find a home that you do love at a price and payment that you can at least like if not love as well.
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