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.
I have seen a lot of misinformation and a basic misunderstanding on this site as to how a builder operates, and how to get your best deal, specifically on an inventory home. I have been on the Real Estate side, and on the New Home side in sales for many years.
1) Get your loan information together prior to making your offer. The only thing your loan officer should be waiting for is a sales price. This will take some legwork on your part. Many buyers take their sweet time in getting paperwork to the loan officer. DONT !!! Do what needs to be done in a quick manner.
2) When making the offer to the builder:
a. Be ready to close in 14 days...that's right...14 days. I've seen many people on here complain about a 30 day closing, give me a break. Iv'e done deals in 3 days....14 days is plenty, 30 is overkill. If you have a good loan officer, if YOU are prompt on getting paperwork in, and you have an experienced new home salesperson this should be a piece of cake. Every day that tics by costs the builder money on interest. Builders will want to close before the 15th or 30th of each month, so keep that in mind when making the offer.
b. Bring a cashier's check when submitting the offer. This shows you are very serious
c. Offer below the bottom line. The salesperson's manager gives them the bottom line, but that is not their true bottom line, there is some wiggle room here. Don't worry if the salesperson says "I don't know about this." If the offer is anywhere close to being reasonable they will turn it in, afterall...buyers like you don't come around that often. Many buyers are misinformed, underprepared, and unrealistic. You will be a breath of fresh air, and in return you WILL get a better deal.
d. Don't be petty over minor things that can easily be replaced after closing, instead use this to your advantage. Things like accent paints, doorknobs, ceiling fans...etc. Tell the builder you want them changed, but in an effort to speed up closing, you will take some $$$ instead and do it yourself. Again, this shows you are serious and want to close quickly. This is what the builder wants. They get a quick closing where they don't have to do much work, and you get a great deal on the home.
I could go on and on....but these are some key points to get you and your family the best deal.
Last edited by houstoner; 05-04-2009 at 08:04 AM..
Reason: Thread moved from Houston forum.
Here is one thing that worked for us. We negotiated with several builders at the same time, and worked their deals off each other. For example, we got Builder A to throw in amenities like discounts on upgrades, no lot premium, major appliances, mini-blinds on windows, etc. Then we went to Builder B and told them what Builder A had thrown in, and asked them to match it and go one better. Rinse and repeat this strategy as many times as necessary until you get the deal you want.
You've done cash deals in 3 days...not financed deals.
What a stupid point.
I can't think of many situations these days where you would be able to close a deal in 14 days. Underwriters are having seller's and buyer's jump through more and more hoops as the market tightens up.
Builder's understand this and don't expect you too. A 30 day closing frame is fine.
Last edited by diggity101; 04-29-2009 at 02:32 PM..
Wrong...I did do a deal in 3 days, it was tough, but it was done, and it was this year and it was financed.
14 days is plenty. And yes, 30 days is fine. I was trying to give advice for people who want to get a deal and how many builder's systems work.
Just trying to give you some advice from the inside. If you don't like it...fine with me.
I too find that real real real hard to believe. Even in this economic depression where every person involved in seeing that closing to the end has nothing to do but to focus 100% on that one closing.
OK. What help can a buyer's realtor provide while buying from a builder ?
Quote:
Originally Posted by Houston321
I have seen a lot of misinformation and a basic misunderstanding on this site as to how a builder operates, and how to get your best deal, specifically on an inventory home. I have been on the Real Estate side, and on the New Home side in sales for many years.
1) Get your loan information together prior to making your offer. The only thing your loan officer should be waiting for is a sales price. This will take some legwork on your part. Many buyers take their sweet time in getting paperwork to the loan officer. DONT !!! Do what needs to be done in a quick manner.
2) When making the offer to the builder:
a. Be ready to close in 14 days...that's right...14 days. I've seen many people on here complain about a 30 day closing, give me a break. Iv'e done deals in 3 days....14 days is plenty, 30 is overkill. If you have a good loan officer, if YOU are prompt on getting paperwork in, and you have an experienced new home salesperson this should be a piece of cake. Every day that tics by costs the builder money on interest. Builders will want to close before the 15th or 30th of each month, so keep that in mind when making the offer.
b. Bring a cashier's check when submitting the offer. This shows you are very serious
c. Offer below the bottom line. The salesperson's manager gives them the bottom line, but that is not their true bottom line, there is some wiggle room here. Don't worry if the salesperson says "I don't know about this." If the offer is anywhere close to being reasonable they will turn it in, afterall...buyers like you don't come around that often. Many buyers are misinformed, underprepared, and unrealistic. You will be a breath of fresh air, and in return you WILL get a better deal.
d. Don't be petty over minor things that can easily be replaced after closing, instead use this to your advantage. Things like accent paints, doorknobs, ceiling fans...etc. Tell the builder you want them changed, but in an effort to speed up closing, you will take some $$$ instead and do it yourself. Again, this shows you are serious and want to close quickly. This is what the builder wants. They get a quick closing where they don't have to do much work, and you get a great deal on the home.
I could go on and on....but these are some key points to get you and your family the best deal.
Dealing with a builder isn't that much different than dealing with an individual.
You still have to identify the property, negotiate the terms of the sale, schedule and negotiate inspections, etc.
Salesmen in new construction are usually very slick and try to overwhelm you with all the tremendous upgrades and incentives. They make it very tough to figure out what the bottom line really is. Having someone experienced on your side can help tremendously.
Dealing with a builder isn't that much different than dealing with an individual.
You still have to identify the property, negotiate the terms of the sale, schedule and negotiate inspections, etc.
Salesmen in new construction are usually very slick and try to overwhelm you with all the tremendous upgrades and incentives. They make it very tough to figure out what the bottom line really is. Having someone experienced on your side can help tremendously.
That is correct diggity101. The sales counselors work for the builder and will not have your best interest at heart. Realtors are in the business to educated home buyers in the home buying process, but most of all negotiating the best price possible.
I lied and told them that I got better offers from somebody else than when they start dropping their price to a reasonable amount I take it lol
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.
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.
Wrong
