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We are looking at buying in a 55+ development here in PA. Looks like 300 homes $450,000 to $600,000 with all the bells and whistles. It just doesn’t feel like there is any room for negotiation? Thoughts?
This is a brand new development with what appears to be only one lot sold. A second development, same company is half sold out. Both with 300 homes. The developer is Traditions of America. I would be buying from the developer. Do I need a buyers agent?
Conventional wisdom is that developers are more likely to negotiate on upgrades than base price.
Quote:
Originally Posted by caco54
This is a brand new development with what appears to be only one lot sold. A second development, same company is half sold out. Both with 300 homes. The developer is Traditions of America. I would be buying from the developer. Do I need a buyers agent?
Are you sure you want to be one of the very first buyers?
Read carefully the purchase contract, and be sure you will be OK if the developer does the absolute minimum with respect to completion date and amenities completion.
I suppose you can ask if the builder will give you a discount for not having an agent. I would be surprised it they did.
In principle an agent will know what sorts of concessions are achievable.
Builders in new construction developments (whether 55+ or otherwise) very rarely negotiate on the sales price as they want to keep the "value" of the community at the prices they initially set. If builders negotiate lower sales prices as the development progresses, no one would ever want to be the first buyers. Depending on the builder, where you can make some headway is with items that don't reflect in the final sales price such as upgrades to carpet, appliances, countertops, window coverings, etc. Some builders may pay your closing costs (if getting a mortgage). Good luck!
My experiences is several new build buys in developments were the seller would not negotiate much on the list price, maybe 3% but would deal on options/upgrades. I say buy all the options/upgrades you want and your final price will be much lower than the list price of everything.
Hire a buyers’ agent who will kick back part of their commission to you.
Pay them more money if they know how to be a butthole when dealing with the builder.
We live in a 55+ community of 250 lots where the first houses started in 2000. People paid the “builder’s premium” back then and somehow convinced themselves they were getting a square deal. A few of them still live here and they are all underwater with negative equity. Now real estate agents will jump in here to say that all real estate pricing is local. Certainly true, but small consolation to the buyers who overpaid because of marketing hype or FOMO.
We bought our home in 2016 (built in 2006) for half what the original owners paid.
In some of the 'Active Adult' communities being built here west of DC there is no negotiation. It is a matter of waiting to get on a waiting list as they start new sections. This may just be some of the popular ones I know of by a smaller developer (a regional one not a national builder) who builds in popular medium size local communities that have limits on how many new houses can be built each year. The only thing tighter is re-sales in this builder developments.
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