U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-10-2012, 02:26 PM
 
3 posts, read 9,897 times
Reputation: 10

Advertisements

We're scheduled to go with our realtor this week and make an offer to have a house built in an existing development. The builder, our agent, and the development's sales agent will be there. We've never bought new construction before. We've been given the base price and lot price with a list of what is included. Is it expected for us to try to negoiate on price, closing costs, or upgrades, etc, or is that not done? Thanks!
Reply With Quote Quick reply to this message

 
Old 04-10-2012, 02:32 PM
 
Location: NJ
17,578 posts, read 45,501,716 times
Reputation: 16261
You should be talking to your agent about this. If they don't know the answer you should find a new agent.
Reply With Quote Quick reply to this message
 
Old 04-10-2012, 02:35 PM
 
Location: Lead/Deadwood, SD
948 posts, read 2,746,726 times
Reputation: 872
Have your agent do research on the builders previous sales. Some price for negotiation, some do not.
It's not always a good idea, depending on the builder, one way to assure they skimp on quality, is to negotiate the typical profits down.
Reply With Quote Quick reply to this message
 
Old 04-10-2012, 02:44 PM
 
Location: NJ
17,578 posts, read 45,501,716 times
Reputation: 16261
Quote:
Originally Posted by eric#1 View Post
It's not always a good idea, depending on the builder, one way to assure they skimp on quality, is to negotiate the typical profits down.
If someone actually knew this would they actually still go to that builder?
Reply With Quote Quick reply to this message
 
Old 04-10-2012, 03:19 PM
 
Location: Austin
7,238 posts, read 21,402,260 times
Reputation: 10002
You have a meeting scheduled, but no game plan? You can't really make up a plan as you go along in front of the opposition. Your agent should have already talked with you about the process in your immediate area as it's different with all builders and in all different locations.
Reply With Quote Quick reply to this message
 
Old 04-11-2012, 07:21 AM
 
Location: Lexington, SC
4,281 posts, read 12,469,276 times
Reputation: 3749
My last two homes were new builds. The best negotation is on options, not the basic home price. Options can be had for 50% or less. If you are looking to have a stripper home built, then little room to negotiate.

If asked earlier I would have said no need for you to have an agent. Deal direct with the buider and/or their agents. You added a layer (your agent) someone is going to have to pay for.
Reply With Quote Quick reply to this message
 
Old 04-11-2012, 02:38 PM
 
Location: Lead/Deadwood, SD
948 posts, read 2,746,726 times
Reputation: 872
Quote:
Originally Posted by manderly6 View Post
If someone actually knew this would they actually still go to that builder?
Often times, they will. Here are some examples - code says x amount of re-bar in concrete - the builder may go with that instead of his typical "beefed up" code. Type of insulation - builder again goes with minimum instead of his preferred, and the list goes on - windows, appliances, garage door openers, AC units, sliding doors, siding and shingle grades, even interior insulation, even the flippin' mailbox.

All those may be downgrades that are very acceptable to some people. Like I said though, be careful when negotiating price down to make sure you are still getting what you wanted. Many of these things the average Joe doesn't know the difference on and when price is negotiated down and the contractor says he's putting a 20 yr shingle on, no questions are asked, even if the model home has a 30 yr.

At the end of the day if the price is consistent with the quality then the downgrades won't hurt his reputation if the home still meets code, and is within the terms of the contract.
Reply With Quote Quick reply to this message
 
Old 04-11-2012, 02:48 PM
 
Location: Lakewood Ranch, FL
5,663 posts, read 10,491,237 times
Reputation: 6941
Quote:
Originally Posted by accufitgolf View Post
My last two homes were new builds. The best negotation is on options, not the basic home price. Options can be had for 50% or less. If you are looking to have a stripper home built, then little room to negotiate.
My experience has been similar. Some builders offer incentives (i.e. $5000 toward closing, etc.) to use their approved lender and/or their title people, some will offer special discounts on upgrades or a credit of x dollars for upgrades, that sort of thing but usually the base prices are not negotiable. They really don't want public records to show prices less than the list base price.
Reply With Quote Quick reply to this message
 
Old 04-11-2012, 02:50 PM
 
Location: NJ
17,578 posts, read 45,501,716 times
Reputation: 16261
At one point I was looking at new construction. The big discounts were on houses they had already built. I don't know if they were sales that fell through or what, but there were significant discounts on those houses vs. buying the same exact model that wasn't built yet.
Reply With Quote Quick reply to this message
 
Old 04-11-2012, 04:15 PM
 
Location: Boise, ID
8,046 posts, read 28,037,933 times
Reputation: 9463
manderly beat me to it. I was just going to say that existing new construction will sometimes negotiate. New construction custom builds usually will not. At least not on the price. You may be able to get them to throw in a fence for free, or something, but they usually will not come off the price.

I can tell you that in my area right now, because prices have dropped so low, and material costs are so high, it is difficult enough for a builder to make ANY profit on a house, that most builders here just aren't building at all right now, or are only building for people who are paying cash, or have more than 20% cash down on the loan, because appraisals may be a problem.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Similar Threads

All times are GMT -6.

© 2005-2023, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top